Last updated on July 18th, 2023 at 01:22 pm
The Biden stimulus (American Rescue Plan) is an average tax cut of $3,000 for the low and middle class and $6,000 for families.
According to an analysis from The Tax Policy Center:
According to a new analysis by the Tax Policy Center, the Senate version of the American Rescue Plan (ARP) would reduce federal taxes in 2021 by an average of $3,000 and raise after-tax incomes by 3.8 percent. Families with children would get an average tax cut of more than $6,000 under the bill, which now goes to the House for final approval.
Simply in terms of whose taxes are cut, the bill is in stark contrast to the 2017 Tax Cuts and Jobs Act. In 2021, low- and moderate-income households (those making $91,000 or less) would receive nearly 70 percent of the tax benefits from the Senate measure. Among families with children, those low- and middle-income households would get nearly three-quarters of the benefit. By contrast, nearly half of the TCJA’s 2018 tax cuts went to households in the top 5 percent of the income distribution (who made about $308,000 that year).
The talk has been rightly centered on stimulus checks, but the longer-term policy implications of the law will provide a tax cut of $3,000 year after year to lower and middle-class Americans. The Biden stimulus isn’t socialism. It is the government focusing its attention on the people who are the true economic drivers of the economy.
Republicans are screaming socialism because they oppose tax cuts for anyone other than the wealthy and corporations. The has tried trickle-down tax cuts with each Republican administration, and the result has been economic slowdown with exploding debts and deficits.
The next time a Republican tries to justify opposing the stimulus, the one and only question that need to be forced to answer is why they oppose $3,000 to $6,000 tax cuts.
What Republicans won’t tell you is that the stimulus is a tax cut for the people who need it most.
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