AP FACT CHECK: Trump on middle class and taxes
WASHINGTON (AP) — A look at one of President Donald Trump’s statements from his prepared State of the Union address on Tuesday night and how it compares with the facts:
TRUMP: “Our massive tax cuts provide tremendous relief for the middle class and small businesses.”
THE FACTS: That depends on how you define “tremendous.” The biggest beneficiaries from the tax law are wealthy Americans and corporations.
Most Americans will pay less in taxes this year. The nonpartisan Tax Policy Center estimates that about 80 percent of U.S. households will get a tax cut, with about 15 percent seeing little change and 5 percent paying more.
Middle-class households — defined as those making between roughly $49,000 and $86,000 a year — will see their tax bills drop by about $930, the Tax Policy Center calculates. That will lift their after-tax incomes by 1.6 percent.
The richest 1 percent, meanwhile, will save $51,140, lifting their after-tax incomes by 3.4 percent, or more than twice as much as the middle class.
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