The trickle-down effects of President Trump’s Tax Cuts and Jobs Act have failed to materialize to the extent anticipated by the administration, but Nevada’s wealthiest — sometimes dubbed the “one-percenters” — are benefiting disproportionately, according to an analysis by the Institute on Taxation and Economic Policy.
- The highest earners in Nevada, those with wages of $611,000 and above, are expected to save $89,990 — or 14.7 percent — on their 2020 taxes as a result of the president’s tax cuts.
- By contrast, Nevada’s poorest residents, those earning less than $23,000 a year, are projected to save $80 on their 2020 taxes as a result of the Trump tax cuts. That equates to a savings of .35 percent.
- Those earning between $23,000 and $42,500 should save $490 or 2.1 percent.
- Wage earners whose income is between $42,500 and $67,100, are expected to save $730 or 1.7 percent on their 2020 taxes.
- Those earning between $67,100 and $110,700 are slated to save $1,250 or 1.9 percent.
- Nevadans earning between $110,700 and $231,400 should save $2,990 or 2.5 percent in 2020.
- Those with salaries of $231,400 to $611,100 are expected to save $10,000 or 4.5 percent in taxes.
The Tax Cuts and Jobs Act reduced corporate taxes to 21 percent and revised business deductions. The Act increased standard deductions for individual taxpayers and increased the child tax credit.
The president predicted companies enjoying corporate tax cuts would pass on their savings in the form of higher pay, but wages grew only 2 percent in 2017, according to the Congressional Research Service, slower than Gross Domestic Product, which grew at 2.9 percent.
“Instead, the federal government incurred massive deficits while wealth inequality increased to its highest level in three decades,” according to a recent story in Forbes.