Households with incomes in the top 1 percent will receive an average tax cut of more than $60,000 in 2025, compared to an average tax cut of less than $500 for households in the bottom 60 percent, according to the Tax Policy Center (TPC).1 As a share of after-tax income, tax cuts at the top — for both households in the top 1 percent and the top 5 percent — are more than triple the total value of t. [...] 2017 Law Created New Tax Advantages for Wealthy People and Profitable Corporations The law will boost the after-tax incomes of households in the top 1 percent by 2.9 percent in 2025, roughly three times the 0.9 percent gain for households in the bottom 60 percent, TPC estimates.10 The tax cuts that year will average $61,090 for the top 1 percent — and $252,300 for the top one-tenth of 1 percent. [...] For example, the law lowered statutory tax rates at all income levels, nearly doubled the size of the standard deduction from $13,000 to $24,000 for a married couple in 2018, and doubled the size of the Child Tax Credit for many families.14 Yet other provisions raised taxes on families, such as the elimination of personal exemptions and the new, permanent inflation adjustment for key tax parameter. [...] The bottom 50 percent of households by net worth held just 1 percent of overall equities as of 2019.39 Another new study by a team of economists from Harvard, Princeton, the University of Chicago, and the Treasury Department estimates that the corporate tax cuts — including the cut in the corporate tax rate, full expensing for capital investments, and international tax changes — led to nearly doll. [...] The 2017 law’s core provisions tilt heavily to households with incomes at the top of the distribution: white households in the highest-earning 1 percent receive 23.7 percent of the law’s total cuts, far more than the 13.8 percentage share that the bottom 60 percent of households of all races receive.
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