The document summarizes the impact of the Trump tax cuts which disproportionately benefited the top 1% of earners. The top 1% earned over $715,000 annually and received over 50% of the total tax savings while the bottom 90% received only 30% of savings. As a percentage of income, the top 1% received the largest tax cuts between 3-4% of their income. The $1 trillion tax cut added significantly to the national debt without providing sustained economic benefits as promised such as increased employment, investment, or GDP growth.

1. THE TRUMP TAX CUTS
“It’s time that we take care of our people” – September 2017
Tax Cuts and Job Acts is signed into law -- December 2017
The cuts became effective in 2018
Steven Zecola
February 2020

2. BUT WHO EXACTLY ARE TRUMP’S PEOPLE?
The Top 1% earn an average of $715,000 per year;
their net worth exceeds $10 million
or
For the other 99%, the median salary is $63,000;
their median net worth is less than $100,000

3. TRUMP’S TAX SAVINGS PER YEAR - $300+ MILLION
Top 1% of earners
get more than 50%
of the total tax savings
Bottom 90% of all
earners get only
30% of savings
2% - 10% of
highest earners
get 17% of savings
This chart gives an indication of Trump’s favorite people

4. AS A PERCENTAGE OF INCOME, TRUMP’S TAX CUTS
ARE THE HIGHEST FOR TOP 1% OF EARNERS
0
0.5
1
1.5
2
2.5
3
3.5
4
Bottom 20% Middle 21%-99% Top 1% ALL
Tax Cuts As a % of Income by Income Group
This chart clearly shows who Trump likes – and dislikes

5. WHY CUT TAXES FOR THE TOP 1%?
• The Top 1% of individuals didn’t need and didn’t asked for tax relief
• The economy was in the 10th year of growth; it didn’t need stimulation
• Tax rates have been relatively low; therefore the demand pick-up from a Trump tax cut would be
less pronounced than in the Reagan years
From an economics perspective, the tax cuts are really a tax deferral. They add
to the national debt, and will have to be paid back.

6. THE PROMISED EFFECTS OF THE TRUMP TAX CUTS?
 The non-partisan Congressional Budget Office found the tax cuts:
 Had virtually no impact on employment
 Haven’t contributed to investment given the wealth of cash at businesses
 Have not paid for themselves

7. WHAT ABOUT THE STIMULATIVE EFFECT ON THE
ECONOMY?
No sustained uptick in the economy from tax cut
Quarterly GDP Growth

8. WHAT ABOUT THE INCREASED DEBT FROM THE TAX CUT?
Trump’s Tax Cuts Add Over $1 Trillion to the National Debt Bringing the Total to $21 Trillion

9. PUTTING IT ALL TOGETHER
• The Trump tax cut was heavily slanted toward the Top 1% of individuals
• The $1+ trillion tax cut was really a tax referral – it will have to be paid back in higher taxes or
lower government expenditures
• Trump has already introduced cuts to Medicaid, Social Security and other domestic programs
• The national debt currently equates to $130,000 in debt for every voter in the United States
Can you trust Trump to determine your fair share of the $21 Trillion national debt?