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Policy Memo
Topline
TCJA resulted in higher incomes for American families and created instantaneous income growth. • Between 2017 and 2019, household income grew from $72,090 to $78,250. • That is an increase of $6,160 or 8.5%. Thanks to President Biden’s policies, hous
AAF: American Families Won With the 2017 Tax Cuts TOPLINE: TCJA resulted in higher incomes for American families and created instantaneous income growth. • Between 2017 and 2019, household income grew from $72,090 to $78,250. • That is an increase of $6,160 or 8.5%. Thanks to President Biden’s policies, household income is now falling. • Between 2020 and 2022, household income fell from $76,660 to $74,580. • Under President Biden, family incomes have dropped by $2,080 or 2.7%. TCJA lowered individual tax rates: TCJA reduced marginal tax rates for almost every individual taxpayer in 2017. These rate changes are only temporary and are set to expire at the end of 2025. For 2024, the rates are applied as follows:
Congress must act to extend all of the lower rates before the end of 2025. If nothing is done, Americans making as little as $11,600 are set to get hit with tax increases. TCJA actually increased revenue Six years after TCJA went into effect, tax revenue has been higher than any government estimates from before the bill was signed. The federal government is collecting more taxes than projected because lower rates have meant more economic activity. Here are some of the key facts: • Tax revenue in 2021, 2022, and 2023 was $833 billion higher than CBO predicted before
tax cuts were enacted. • Government tax revenue is now projected to be $1.56 trillion higher than CBO predicted. • Total government tax revenue is projected to be $2.58 trillion higher than CBO predicted. • Between 2018 and 2023, annual tax revenue increased from $3.3 trillion to $4.44 trillion
in 2023. That is an increase of $1.1 trillion (33%). TCJA resulted in more corporate taxes not less: Progressives argue that we need to increase taxes for corporations to “pay their fair share.” Reality Check: Corporations are paying more taxes than ever. • Tax revenue from corporations exploded from $297 billion in 2017 to $420 billion in 2023.
That represents an increase of $122 billion or 41% from corporations since tax cuts were enacted.
Individual Tax Rates After 2025 15% 25% 28% 33% 39.60%
Current Tax Rates Under TCJA 12% 22% 24% 32% 37%
Income Level $11,600 $47,150 $100,525 $191,950 $609,350
• U.S. corporations repatriated $800 billion in overseas revenue as a result of tax reform.