Trump’s tax cuts helped billionaires pay less than the working class for first time

The Guardian Finance 2 months ago

They were billed as a “middle class miracle” but according to a new book Donald Trump’s $1.5tn tax cuts have helped billionaires pay a lower rate than the working class for the first time in history.

In 2018 the richest 400 families in the US paid an average effective tax rate of 23% while the bottom half of American households paid a rate of 24.2%, University of California at Berkeley, economists Emmanuel Saez and Gabriel Zucman calculate in their new book, The Triumph of Injustice.

Taxes on the rich have been falling for decades. In 1960 the 400 richest families paid as much as 56% in taxes, by 1980 the rate had fallen to 40%. But Trump’s tax cuts – arguably his most significant legislative victory – proved a tipping point.

Thanks to the controversial tax package the top 0.1% of US households were granted a 2.5% tax cut that pushed their rate below that of the lower 50% of US earners.

“This is a revolutionary change and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor, and as wages start going up at levels that you haven’t seen in many years,” Trump said in September 2017 as he fought to pass the tax package.

But the tax cuts have not led to a significant uptick in economic growth, hiring has slowed and wage growth has remained lackluster. In the meantime the national deficit has swollen to $1tn.

Saez and Zucman, who have previously worked with French economist Thomas Piketty, takes into account not just federal income taxes but also state, local and corporate taxes.

The pair argue that the dramatic fall in taxes for the ultra wealthy is the result of policies enacted by both Republican and Democratic administrations which have both cut top rates and taxes on capital gains while allowing corporations to shelter their profits overseas.

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The Boston Globe › 2 months ago
A new study on the tax burden of the ultrarich begins with a startling finding: In 2018, for the first time in history, America’s richest billionaires paid a lower effective tax rate than the working class.
The Hill › Politics › 2 months ago
Billionaires paid less in taxes than the working class last year for the first time in U.S. history, a study found.Economists Emmanuel Saez and Gabriel Zucman found in their book-length study "The Triumph of Injust...
The Inquisitr › 2 months ago
For the first time in United States history, billionaires paid less money in taxes than the working class. In a new study called “The Triumph of Injustice,” Emmnuel Saez and Gabriel Zucman report that the richest families in the country had a lower...
Forbes › Finance › 2 months ago
For the first time ever, America’s 400 wealthiest people paid a lower tax rate in 2018 than any other group of people, according to a new study completed by economists Emmanuel Saez and Gabriel Zucman.
Forbes › 2 months ago
U.S. billionaires paid a lower tax rate than the working class in 2018.
RT › 2 months ago
American billionaires have never had it so good – they’re actually paying a lower tax rate than the working class, according to two economists exposing the real beneficiaries of a system that has redistributed wealth to the top. Read Full Article...
The Sydney Morning Herald › Finance › 2 months ago
The tipping point came in 2017 with the passage of Donald Trump's tax cuts. They were a windfall for the wealthy, lowering the top income tax bracket and slashing the corporate tax rate.
CBS News › 1 month ago
The rich have enjoyed decades of tax cuts even though most Americans believe they should pay more.
Raw Story › 3 weeks ago
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The Independent › 2 months ago
Richest 400 families paid tax at rate 1.2% less than bottom half of American households
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