Late Tuesday night, the Republican Senate passed historic tax reform — a massive package of corporate tax cuts and well-sized individual tax cuts, combined with the repeal of the individual mandate and opening the Arctic National Wildlife Refuge for oil exploration. It represents the only significant win for President Trump and the Republicans in Congress — but it is a major win. Here’s what you need to know.
1. Virtually Everyone Will Get A Tax Cut. Despite the media’s insistence that this is a “tax cut for the rich,” virtually everyone who pays taxes gets a tax cut. The only people who see tax increases are high income-earners living in high-tax states (like yours truly). This isn’t the biggest tax cut in history, as Republicans have been pitching, but it’s not insignificant either — according to the Tax Policy Center, the average household will receive a tax cut of $1,610 in 2018; an average household earning $1 million or more would see a tax decrease of approximately $69,660, as compared with $870 for households making $50,000 to $75,000. The reason for that: high income earners pay the vast bulk of the taxes in the country. The idiotic idea that Americans will pay more taxes after the bill — an idea believed by 50% of the population — is simply wrong.
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