Regressive Tax Cuts

I found some numbers at ArgMax that are taken from a Brookings report on the distribution of savings from the Senate’s version of the tax cut, and figured I’d make a nice picture (click to enlarge):

The picture somewhat exaggerates the top-heaviness of the benefits because the bins widen as you move right. Still, it’s quite regressive: for example, the $75k-$100k group has roughly double the income that the $40k-$50k group has but their tax savings ($1,597) are 3.6 times larger. This is what happens when you finance dividend tax cuts by shaving cuts for married couples and small businesses.


UPDATE: This is a great example of why you should be suspicious when the administration continually and virtually exclusively talks about the “average benefit”–which is around $1000 for this proposal. In this instance, anybody making less than $75,000 per year doesn’t come close to getting the average benefit.