Two Years Later: Winners/Losers Of Trump’s Tax Law
December 22, 2019
Today is the anniversary of the signing of Trump’s tax law, which was sold as a middle class tax cut. That was a lie. Since then, the biggest beneficiaries of Trump’s tax law have been large corporations, the wealthiest 1% and Trump himself, while working families have fallen further and further behind.
- 91 large publicly traded companies paid zero federal income tax in the first year under Trump’s tax law.
- Corporations lowered their effective tax rate to 7% last year, the lowest since 1947.
- 400 of America’s largest companies paid an effective federal tax rate of 11.3% on average, possibly the lowest in more than three decades.
The wealthiest 1%.
- By 2027, 82.8% of the Trump tax law’s benefits will go to the top 1%.
- “Donald Trump’s $1.5tn tax cuts have helped billionaires pay a lower rate than the working class for the first time in history.”
- Based on his 2005 tax return, Trump could save about $11 million per year on his taxes under his tax law.
- We can’t know for sure how much Trump could save since he refuses to release his tax returns.
- The Trump family could save $4.4 million on their inheritance from the estate tax cut.
Big pharmaceutical companies.
- Four major pharmaceutical companies alone saved a combined $7 billion on their tax bills in 2018.
- Major U.S. banks saved $21 billion on their tax bills in 2018.
CEOs and wealthy shareholders.
- CEOs and wealthy shareholders were the biggest beneficiaries of a record $806 billion S&P 500 companies spent on stock buybacks in 2018 rather than investing or expanding their businesses.
- Wealthy heirs can now inherit about $22 million without having to pay any tax at all after Trump’s tax law doubled the estate tax exemption.
- Trump’s tax law exempted 3,700 of the wealthiest heirs in the country from having to pay any tax on their inheritance.
Real estate developers.
- Trump’s tax law included a provision to allow real estate investors like Trump to take advantage of the “pass-through” loophole that Republicans sold as a small business tax cut.
- The top 1% of income earners get more than half the benefits from the pass-through deduction in Trump’s tax law, while the bottom 20% only get 0.1% of the benefits.
The working class.
- Under Trump’s tax law, average taxes will rise for everyone earning under $75,000 by the end of the decade.
The majority of Americans.
- Compared with previous law, 53% of taxpayers will pay more in taxes by the end of the decade.
- Future taxpayers will have to bear the cost of Trump’s tax law that the CBO projected would add $1.9 trillion to the national debt over the next decade.
- The federal budget deficit hit its highest level in seven years in FY 2019 as Trump’s tax law has failed to pay for itself as he and Republicans promised.
- Corporations laid off workers using the windfall from Trump’s tax law, despite Trump and Republcian’s promises.
- Kimberly-Clark said it would use savings from Trump’s tax law for a restructuring initiative that included laying off 5,000 to 5,500 workers.
- AT&T saved tens of billions of dollars from Trump’s tax law then proceeded to cut tens of thousands of jobs.