Trump ‘big beautiful’ bill gives top 1% biggest tax cuts in these states
R-la., Speaker of the Assembly R-La.
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A large tax release package, where the Congress took place on Thursday by President Trump, will be a decline for the richest US households. However, the size of this financial advantage depends largely on where high -income taxpayers live, analysis By the Institute of Taxation and Economic Policy.
According to ITEP, a left -leaning thinking tank, the legislation will give a tax reduction in 2026 or about 2.4% of its revenues. (These household peoples have $ 917,000 or more per year, and an average of $ 2.7 million.) He said.
Some households stand to get a much greater tax advantage.
Itep would see that the annual tax bills of the richest households in the three states – Wyoming, South Dakota and Texas – fell more than $ 100,000.
In Wyoming, he would see that the first 1% of the taxes have fallen the most: in 2026, an average of $ 133,000 (or 3% of income). The first 1% revenue in the state in the state is approximately 4.5 million dollars.
“The draft is the most advantageous for conservative -prone states, which are a large number of wealthy people living within their borders,” ITEP’s research director Carl Davis said. He said.
The authority said that these states did not receive personal income taxes.
Wyoming and Texas “are classic examples that have many wealthy people and are incredibly lightly taxed to these rich people,” Davis said.
Why are the rich get a big tax reduction?
The analyzes found that the legislation offers more than $ 4 trillion dollars for ten years and most benefits accrue to higher income households. In addition, it cuts the social security network and reduces billions of dollars from programs such as Medicaid and Food Stamps and helps low winners.
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The center of the bill is an extension of the 2017 tax cuts issued during the first term of President Trump.
In general, legislation reduces income tax rates, taxes a greater share of wealthy properties and provides tax cuts to business owners. Davis said that the GOP invoice benefits high -income households.
It also limits the amount of state and local income taxes and real estate taxes that households can fall from $ 40,000 each year from taxable income each year.
Davis, “Salt” policy, Wyoming, South Dakota and Texas states such as state income tax in the states of the rich in the state does not affect the rich residents, he said. However, it has a great impact on states with high states and local income taxes and real estate taxes.
In other words, the high -income inhabitants of Wyoming, South Dakota and Texas often reversed most of the tax and are not too negative.
On the contrary, the highest winners in California and New Jersey will see a smaller tax reduction in 2026, and an average of $ 34,000 and $ 21,000 were found. This represents approximately 1% of its income in each state.
Separate analyzes have found that the richest households will get the largest financial benefits from the GOP invoice.
The first 20% of the US households (earning more than $ 217,000 a year) It would receive a tax reduction According to the Tax Policy Center, equivalent to 3.4% of post -tax revenues in 2026. Meanwhile, the lower 20% would receive a 0.8% tax reduction.
Analysis only examined the tax departments of the legislation.
In general, more comprehensive analyzes that explain the interruptions of programs such as Medicaid and Additional Nutrition Aid Program would be worse than the analysis of the budget laboratory at Yale University, which modeled the similar legislation by the Assembly last month, and the analysis of the congress budget office.
