Tax Cuts and Jobs Act Myths Debunked
Myth: The Tax Cuts and Jobs Act only benefits wealthy Americans.
Fact: President Trump’s tax cuts lowered taxes for every income bracket, with an average tax cut of more than $1,000. The TCJA actually made the tax code more progressive, with the wealthy paying a greater share of total taxes after it passed.
Myth: The Tax Cuts and Jobs Act primarily benefits corporations.
Fact: Small businesses are one of the biggest winners of the tax cuts. The legislation includes several provisions to help ordinary small businesses such as a 20 percent tax deduction, immediate expensing, and lower rates.
Myth: Biden has promised he won’t raise taxes on Americans making less than $400,000 per year.
Fact: In April, Biden promised that the Trump tax cuts will “expire” on his watch, a move that would raise taxes on Americans in every income bracket. A similar scenario would play out under a Harris administration. Ordinary small businesses, which generally earn far less than $400,000 per year, will be particularly hit hard by the loss.
Myth: The Tax Cuts and Jobs Act lowered government revenue.
Fact: The Tax Cuts and Jobs Act increased government revenue. Tax revenue levels surpassed expectations by nearly $500 billion in 2022. Overall, since the tax cuts took effect, federal revenue is up $1.5 trillion annually.
Myth: Cutting corporate taxes hurts average American families.
Fact: Reducing corporate tax rates creates a rising tide that lifts all boats. Real wages grew at a record two-decade pace following the law’s implementation in 2018 and 2019. Americans’ real median income grew by more than $5,000 in both 2018 and 2019.
