A Year After the Middle Class Tax Cut, the Rich Are Winning

Tax Cuts Fade Over Time

Average rates dropped in 2018, but they’ll return to 2017 levels by 2026

15%

14.3%

Tax bill

14

13.4%

13

12

12.1%

11

2024

2025

2017

2018

2019

2021

2023

2026

2020

2022

Source: Source: Tax Policy Center estimates
Note: Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.

And, the cuts for middle-class wage earners fade over time. By 2026, changes to individual tax rules expire, while corporate changes are permanent. Unless Congress acts, 53 percent of all taxpayers will see a modest tax hike by 2027, the Tax Policy Center says, including almost 70 percent of middle-income families.