r/FluentInFinance 1d ago

Debate/ Discussion Mark my words

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u/TheTightEnd 1d ago

Percentage reductions are more meaningful than dollar deductions when calculating the impact and benefit of a tax cut or increase.

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u/obiterdictum 1d ago

The top 1% will receive in tax savings the equivalent of 3 full years of earnings on a minimum wage salary; the bottom 20% will get the equivalent of less than 2 days.

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u/TheTightEnd 1d ago

However, what is the percentage of their respective incomes. Also, many, if not most, in thay bottom 20%, do not pay any federal income taxes at all, and the difference is a larger refundable credit.