With the 2021 tax filing deadline one week from today, on Monday, April 18, 2022, it’s important to remember how the Tax Cuts and Jobs Act (TCJA) improved tax filing for all Americans.
Here are some fast facts:
- TCJA worked for American workers: According to analysis of CBO data by the Tax Foundation, TCJA reduced federal tax rates for households across every income level–while increasing the share of taxes paid by the top 1 percent.
- TCJA helped America’s struggling families: More than 6 million people were lifted out of poverty, dropping the poverty rate to 10.5 percent, the lowest level in U.S. history.
- TCJA boosted workers’ paychecks: Income and wealth inequality fell after TCJA, as real wages for the bottom 10 percent grew nearly twice as fast as the top 10 percent and real wealth of the bottom 50 percent of households rose three times faster than that of the top 1 percent.
Unfortunately, Democrats are threatening to reverse these gains with their push for crippling tax hikes, and delivering on President Biden’s promises to repeal all of tax reform. And Bidenflation has already chipped away at Americans’ earnings.
Stay tuned for more updates ahead of the 2021 tax filing deadline.