Significant federal tax changes from 2001 through 2018 have reduced revenue by $5.1 trillion, according to an Institute on Taxation and Economic Policy analysis published July 11.
“By the end of 2025, the tally of tax cuts will grow to $10.6 trillion. Nearly $2 trillion of this amount will have gone to the richest 1 percent. By then, the total impact on the deficit will be $13.6 trillion, including interest payments,” it said.
“President Obama and Congress had allowed some of the Bush tax cuts for the rich to expire. Many Bush-era provisions still in effect benefited the rich, but this was partly offset by tax increases on high-income individuals that are part of the Affordable Care Act.”
The report said that because of the tax cuts in the 2017 tax act along with previous cuts, “the richest fifth of households will receive tax cuts equal to 4.8 percent of their income, once again larger than those received by any other group.” Read more (subscription required)