It's also easy to take a holistic view when in a high income bracket, which the tax cuts are disproportionately skewed to benefit, I guess as a reward for the hard work achieving such success.
One should be careful that they understand what is being said when they say the tax cuts disproportionately favor the rich. The high income people pay a higher percent of their income in taxes. This hasn't changed. But in total they by far pay the majority of taxes in the U.S.. So if everyone gets a 10% reduction in taxes, the high income people save more actual dollars, but still pay a higher percent. 10% of $1,000 is $100, 10% of 1,000,000 is $100,000. It is a twisted and biased look at the numbers to say it disproportionately favors the high income. Be aware that in the "Big Bill" high income earners get no relief on Social Security taxes. The get no relief on SALT taxes. The only relief they get is the exact same reduction in marginal rates that everyone else gets. It just adds up to more net dollars because they pay more net dollars.
The top 1% of income earners pay 40% of Federal Taxes. So any tax rate reduction can be said to disproportionate favor them. Once again different truths depending on your point of view.
Jul 08, 2025 at 11:51 AM
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