As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by CBSNEWS.COM:
The U.S. tax system is supposed to be progressive, meaning that wealthier households pay a larger share of their income to the taxman than the middle class and the poor. Yet after the Tax Cuts and Jobs Act of 2017, that’s no longer the case: For the first time in a century, America’s 400 richest families now pay lower taxes than people in the middle class.
That’s according to an analysis of tax data by two prominent economists, Emmanuel Saez and Gabriel Zucman of the University of California at Berkeley, that is a centerpiece of their new book, “The Triumph of Injustice,” to be published on October 15. Saez and Zucman, who have worked with the noted French economist Thomas Piketty to produce seminal research on inequality, also advised Senator Elizabeth Warren on the Democratic presidential candidate’s plan to impose a wealth tax on ultra-rich families.
The article goes on to state the following:
The tipping point came last year when the Tax Cuts and Jobs Act, which was signed into law by President Donald Trump at the end of 2017, took effect. While Mr. Trump vowed that middle-class families would be helped by the tax overhaul, experts say most working-class families saw only a minimal benefit, while the wealthiest citizens got the lion’s share of breaks. In fact, Saez and Zucman argue, the Tax Cuts and Jobs Act turned the tax system on its head.
Tax rate paid by 400 richest U.S. families: 23%
Tax rate paid by bottom half of all Americans: 24%
— Chris Lu (@ChrisLu44) October 9, 2019
To get more information about this article, please visit CBSNEWS.COM. To weigh in, leave a comment below.