Dec 18 2017
Republican Tax Cuts Will Mostly Go to Wealthy
Despite claims that the Republican tax cuts are aimed at working families, wealthy owners of pass-through businesses (such as partners in large law firms and hedge funds) will see substantially more benefits than workers. In 2019, primarily-wage workers in the bottom 20 percent of earners would average a $40 tax cut. This contrasts with an average tax cut of $87,000 for pass-through owners in the top one percent. Because of the windfall that high-earners will see by becoming a pass-through, many more will seek to use the pass-through loophole in the future—eroding tax revenues and worsening income inequality.