Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

As the Washington Post's Jeff Stein noted in a breakdown of TPC's analysis on Friday, the tax break for the wealthiest is even larger—$51,140—when the corporate tax cuts and the reduction of the estate tax are factored in. (Photo: Stop the GOP Tax Scam)

Under GOP Tax Law, Top 1% Get Extra $33,000 Per Year. The Poor? $40

"While most of the corporate tax cuts flow to the top of the income distribution, what this shows is that even in the direct changes to the individual-side of the tax code, most of those changes are still being allocated to the top."

Jake Johnson

In its first analysis of how the GOP tax plan will affect Americans' personal income taxes alone, the nonpartisan Tax Policy Center (TPC) this week underscored what experts and most of the public already knew: that the Republican tax law will pour tens of thousands of extra dollars into pockets of the wealthy few while providing mere crumbs for the poor.

Specifically, according to TPC's new report, the top one percent of earners will receive an average annual tax cut of around $33,000 just from individual tax changes under the GOP law. The poorest Americans, by contrast, will see an average break of about $40 per year.

"While most of the corporate tax cuts flow to the top of the income distribution, what this shows is that even in the direct changes to the individual-side of the tax code, most of those changes are still being allocated to the top," Kim Rueben, a senior fellow at TPC, told the Washington Post.

The Post published a visual of the disproportionate gains seen by those at the very top:

As the Post's Jeff Stein noted in a breakdown of TPC's analysis on Friday, the tax break for the wealthiest is even larger—$51,140—when the corporate tax cuts and the reduction of the estate tax are factored in.

TPC's analysis of the Republican tax plan—which President Donald Trump signed into law last December—comes as profitable companies continue their stock buyback binge while most Americans report seeing very few if any changes in their paychecks.

Despite Treasury Secretary Steve Mnuchin's promise that Americans would start seeing a positive bump in their checks no later than February 15, the majority of the public said they have yet to see any boost from the GOP tax law, according to a CNBC poll published on Tuesday.


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.

Warren, Sanders, and Others Blast Biden's 'Failure' on Federal Cannabis Policy

While commending Biden's pardons and commutations, six senators wrote that "much more has to be done to address the racist and harmful legacy of cannabis policies on Black and Brown communities."

Jessica Corbett ·


'Broken' Capitalist Food System Drives Soaring Global Hunger: Oxfam

Criticism from the charity's food policy director came in response to a new United Nations report revealing that around 1 in 10 people worldwide went hungry last year.

Brett Wilkins ·


With Manchin's Backing, Senate Dems Unveil Plan to Let Medicare Negotiate Drug Prices

"This compromise will lower prices, cut costs, and stop the drug corporations from raising their prices faster than the rate of inflation," said Margarida Jorge of Lower Drug Prices Now.

Jake Johnson ·


'Fight for Us Goddamnit': Frustration Grows Over Biden Fecklessness Amid GOP Destruction

"We simply cannot make promises, hector people to vote, and then refuse to use our full power when they do," said Rep. Alexandria Ocasio-Cortez.

Julia Conley ·


EPA Likely Underestimating Amount of Toxic Forever Chemicals in US Water: Analysis

"The EPA is doing the bare minimum it can and that's putting people's health at risk," said the policy director of Public Employees for Environmental Responsibility.

Kenny Stancil ·

Common Dreams Logo