General Discussion
Showing Original Post only (View all)"many families will be saving between $11,000 and $20,000 a year, [View all]
and next spring is projected to be the largest tax refund season of all time.
Trump said this last night.
In reality, we have data for 2021 which shows families in each of the bottom 3 quintiles of income already paid less than $11,000 in Federal income tax (most, significantly less). So that means that almost everyone in the lowest earning 60% of families already paid less than $11,000 total in income taxes so it is impossible for that 60% of the population to save $11,000. Even if income taxes were completely eliminated for the bottom 60% (they weren't), they still wouldn't save that much money.
https://usafacts.org/articles/average-taxes-paid-income-payroll-government-transfers-2018/
The facts are, that unlike the lie that Trump is peddling, taxes for working class families were hardly cut at all. The main tax impact of the bill was to make previous cuts permanent, which by itself, saved nobody anything - it just meant that people wouldn't be paying more.
The supposed elimination of taxes on social security (which in reality did not elimnate a single dollar of taxes directly on social security) will save the average social security recipient $670 a year.
The so-called elimation of taxes on tips reduces taxes for tipped workers by a little over $1000 a yeat. But for those making $33,000 or less, that savings drops to just $450.
As for the supposed elimnation of taxes on overtime, that provision will save taxpayers in the bottom 2 quintiles effectvely nothing. The third and fouth quintiles would save a whopping $135 a year, and even the top quintile wil save only $215 a year.