Reminder to everyone starting to do taxes: unless you were in the top tax bracket, Trump and Republicans did not make your tax cuts permanent. They reserved that for the wealthiest people. So your taxes are scheduled to go up this year because of them.

During 2021, 2023 and 2025, income groups earning under $40,000 (about 43% of taxpayers) would contribute to deficit reduction by way of tax increases, while income groups above $40,000 would contribute to deficit increases.

For top 1%, federal tax rates would fall from 33% to 30% in 2021. For the 81st to 99th percentiles, the rate would fall from 24% to 22%, and for the middle, the rate would fall from 15% to 14%. Trends indicate worsening inequality, with larger tax reductions for higher incomes.

The top 1% of taxpayers receive 8% of the benefit in 2018, 25% in 2025, and 83% in 2027.

The bottom 80% receive 35% of the benefit in 2018, 34% in 2025 and none of the benefit in 2027, with some groups incurring costs.

It’s gradual—you won’t see a giant hike this year. But by 2025 almost all the benefit goes toward top earners. This must be reformed.

The corporate tax rate is permanent, btw.

Here’s what I truly hope to see: economists who understand this better than I do (and there are probably thousands) explaining how this affects people. Because the average person is not reading the Congressional Budget Office analysis of the Tax Reform bill.

Here’s a great one by Columbia University Professor and Nobel Prize in Economics winner @JosephEStiglitz. https://www.nytimes.com/2020/10/31/opinion/republicans-biden-taxes.html