GOP Tax Reform Helped Low-Income Families, But Their Gains Are Declining After Biden Stimulus
Just one year after the Republican Tax Cuts and Jobs Act went into effect, lower–income families experienced growth in their wealth outpacing the growth of the upper-class–the first time since 2007, according to a new report from the Congressional Budget Office.
Compare that to just one year into the Biden Administration: The wealth of lower-income families has begun to decline. Biden-Flation is eroding wages and families are taking on debt for basic necessities.
While Democrats seek the highest sustained tax burden in American history, more evidence has poured in confirming that Republican tax reform benefited all Americans.
One of the central tenets of the Commitment to America is “an economy that’s strong” – one where families benefit from increased take-home pay, good-paying jobs, and stability through pro-growth tax and deregulatory policies. That’s why Ways and Means Republicans have introduced a bill to make permanent the very tax reform that succeeded in helping lower-income families.
READ: Buchanan Introduces Legislation to Make Republican Tax Cuts Permanent
Lower-income families are seeing historic prosperity thanks to Republican tax reform.
- Under Republican tax reform, lower-income families are seeing a faster growth rate in their wealth than upper-income families.
- 2019 is the first year since 2007 in which real median family wealth in the lowest two income quintiles outperformed the highest two income quintiles.
Republican tax reform helped all Americans and resulted in the wealthy paying a larger share of income tax.
- The Tax Cuts and Jobs Act of 2017 helped all Americans by reducing the federal tax rates for households across every income level, while increasing the share of taxes paid by the top one percent.
- Three of every four dollars in the 2017 tax cuts went to individuals, cutting taxes for the lowest-income Americans by 10 percent while cutting taxes for the top 1 percent by less than one-half of 1 percent.
- After the GOP Tax Cuts, the rich pay a larger, not smaller, share of income taxes.
READ: Fact Check: In Push for Crippling Tax Hikes & Supercharged IRS, Democrats Repeat Debunked Claims
Democrats’ policies hurt lower- and middle-income families the most.
- Soaring energy prices are hurting lower- and middle-income families the most, with those making $50,000 or less suffering most. These working families have to choose between heating their homes and buying essentials.
- Under President Biden, workers’ wages have dropped over four percent, prompting a majority of Americans to take up bargain-hunting.
- For a majority of low-income households, rising prices have become a source of “major financial stress” as inflation has wiped out 26 million low-income households’ savings since President Biden took office.
READ: As Democrats’ Policies Cripple the Economy, Americans Struggle to Keep the Lights On
READ: LETTER: Under President Biden, Working Women Haven’t Had It This Bad in Decades