Democrats and the liberal media have been caught again pushing fake news about President Donald Trump.
Top Democrats including Joe Biden, Nancy Pelosi, Chuck Schumer, and others falses claimed that Trump’s tax cuts only benefited wealthy Americans.
In response, Democrats used this narrative to help justify their own tax increases in order to may for their massive spending bills.
Biden’s “Build Back Better Act” is a very expensive piece of legislation that faces major battles in the U.S. Senate.
A careful review by the Heartland Institute’s Justin Haskins confirms that the Democrats’ narrative about Trump’s tax cuts is false.
Published in The Hill, the IRS acknowledges that Trump’s “Tax Cuts and Jobs Act” gave the most tax relief to working-class Americans.
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As it turns out, and contrary to what Democrats are asserting, the Trump tax cuts led those with an adjusted gross income of $15,000 to $50,000 to see an average tax cut of 16 percent to 26 percent in 2018, the first filing year under Trump’s tax policy.
Those making $50,000 to $100,000 saw a reduction in their tax bill of 15 percent to 17 percent. Americans earning $100,000 to 500,000 saw a tax cut between 11 percent and 13 percent. As Haskins explains in his op-ed on the data in The Hill, “by comparison, no income group with an AGI of at least $500,000 received an average tax cut exceeding 9 percent, and the average tax cut for brackets starting at $1 million was less than 6 percent.”
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The Trump tax cuts also increased the amount of revenue brought in through federal taxes, another validation of the theory made legendary by economist Dr. Arthur Laffer. There’s a sweet spot on the Laffer Curve when it comes to federal taxes that allows a lower overall tax rate to get the maximum amount of revenue. Raising taxes beyond that point just leads to less income for the government, negating the argument that taxes must go up in order to fund new spending.
But back to the IRS data reviewed by Haskins, he found that “every income bracket with filers earning $200,000 or more increased its tax burden in 2018 compared to 2017, and every income bracket with a top limit lower than $200,000 paid a smaller proportion of the total personal tax revenue collected.”
In other words, Trump was right and Democrats were wrong — both then and now. As Haskins points out, Trump’s adjustment of the nation’s tax policy actually made taxes more progressive, not less. But Biden’s party is keen to continue its lies about what Trump’s tax cuts did and what Biden’s budget would do as congressional Democrats scramble to deliver on Biden’s campaign promises ahead of the midterms.
Radical Democrats have been pushing for the largest single spending bill in history of $3.5 trillion, according to The Wall Street Journal.
Democrats finalized their proposal for $2.9 trillion in tax hikes. It’s the “biggest tax increase in history,” Newsmax reported.
It’s certainly the largest tax increase in decades, which is meant to pay for the Democrats’ higher spending in their ‘reconciliation’ package. As history has proven over and over again, the Democrats’ proposal for taxes and spending will undoubtedly have a negative impact by discouraging Americans from working, saving, investing, and innovating.
Moderate Democrats, such as Senator Joe Manchin of West Virginia, have refused to support the legislation.