President Donald Trump promised that “the rich will not be gaining at all” from tax reform and that his administration would make health insurance “a lot less expensive.” Yet when he signed the tax bill into law in December 2017, he broke both of these promises. The wealthy will see enormous windfalls, paid for in part by an undermining of the Affordable Care Act (ACA), and some families will face increases in health care premiums far larger than the average tax cuts received by working- and middle-class families across the country.
The tax cuts contained in the congressional GOP tax bill are tilted dramatically to the richest taxpayers. The bill’s massive corporate tax cuts, creation of a new loophole for certain business owners, and doubling of the estate tax exemption are all targeted toward those at the top of the income scales.* As a result, in 2019, the average member of the top 1 percent will see a tax cut 81 times larger than the average working- and middle-class family in the bottom 80 percent of the income distribution.The above excerpt was originally published in CAP Action.