Final Trump-GOP Tax Plan Contains Major Tax Cuts for the Wealthy, Leaves Many in WV Out
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households while raising taxes on many low- and middle-income West Virginians. While the bill goes into effect in 2018, many of the provisions directly affecting low- and middle-income individuals and families would all expire after 2025, with the exception of one provision that would raise their taxes. Overall, the tax cuts in the bill are tilted dramatically in favor of the richest West Virginia residents.
According to the Institute on Taxation and Economic Policy, in 2019, the bottom 60 percent of West Virginians will receive a smaller average tax cut, as a share of their income, than wealthier West Virginians. In 2027, the bottom 60 percent will see tax hikes, on average, while the wealthiest in the state continue to receive tax cuts.
Focusing on 2019, when on average all West Virginians receive a tax cut, before the provisions benefiting low- and middle-income families expire, nearly half of the benefits of the tax cut would go to the wealthiest percent of West Virginians, while nearly a quarter would go to the wealthiest one percent. The richest one percent of West Virginians would receive an average tax cut of over $28,000, while the average impact for middle class West Virginians will be only $430.
By 2027, the tax plan would raise taxes on 23 percent of West Virginia taxpayers, with the increases concentrated on the middle class. As a result, in 2027 the plan would, on average, raise taxes on the bottom 60 percent in West Virginia, while keeping tax cuts for wealthier taxpayers.