LETTER: Trump tax cuts by the numbers

The Tax Cuts and Jobs Act (TCJA), signed into law by President Donald J. Trump in December 2017, was a significant overhaul of the US tax code. One of its key features was the reduction of individual income tax rates across various brackets. Here's a more detailed look at the tax cuts by the numbers for different income groups:

1. Seven tax brackets: Before TCJA, there were seven tax brackets ranging from 10% to 39.6%. After the reform, the number of brackets was reduced to seven, but the rates were changed as follows:

- 10% for incomes up to $9,876

- 12% for incomes between $9,876 and $40,125

- 22% for incomes between $40,125 and $89,075

- 24% for incomes between $89,075 and $165,000

- 32% for incomes between $165,000 and $200,000

- 35% for incomes between $200,000 and $500,000

- 37% for incomes above $500,000

2. Average tax savings: According to the Tax Policy Center, a nonpartisan research organization, about 65% of taxpayers received a tax cut, while 30% paid more in taxes. The average tax cut for those who received one was $1,182, while the average tax increase was $630.

3. Top earners' share of total tax savings: The top 1% of earners received about 13% of the total tax savings from TCJA, while the bottom 60% received only 18%.

4. Corporate tax rate reduction: Another significant part of TCJA was the reduction of the corporate tax rate from 35% to 21%. This change was expected to boost economic growth and create jobs.

5. Estate tax changes: TCJA doubled the estate tax exemption amount to $11.18 million per individual and $22.36 million per married couple, effectively reducing the number of estates subject to estate taxes.

6. Alternative Minimum Tax (AMT) changes: TCJA also made changes to the Alternative Minimum Tax (AMT), which is designed to ensure that high-income individuals pay at least a minimum amount of taxes. The exemption amount for AMT was increased to $73,600 for individuals and $110,400 for married couples, reducing the number of taxpayers subject to AMT.

7. Pass-through businesses: TCJA introduced a new deduction for pass-through businesses, allowing business owners to deduct up to 20% of their qualified business income. This provision was intended to help small businesses and individuals with pass-through income.

8. Elimination of personal exemptions and some deductions: TCJA eliminated personal exemptions and some itemized deductions, which could result in higher taxes for some middle-income families. However, the standard deduction was nearly doubled to $12,000 for individuals and $24,000 for married couples, which helped offset these losses for many taxpayers.

9. Sunset provision: Most individual tax provisions of TCJA are set to expire after 2025, while the corporate tax rate reductions are permanent. This means that individual taxpayers will face higher taxes after 2025 unless Congress extends or makes the individual provisions permanent.

10. Economic impact: According to various studies, TCJA is expected to boost economic growth, but its impact on job creation and wages remains debated among economists. Some studies suggest that TCJA could lead to modest economic growth, while others argue that its impact will be minimal or even negative.

In summary, TCJA introduced significant changes to both individual and corporate taxes, with varying impacts on different income groups. While many middle-income taxpayers received modest tax cuts, high-income earners received a larger share of the total tax savings. The long-term economic impact of TCJA remains uncertain.