New federal tax law will hurt many, benefit the wealthy few

Last month, after introducing various tax bills and rushing the legislative process, Congress and the President passed the Tax Cuts and Jobs Act. Analysis of the final tax plan bill confirms what previous analysis showed: Our country’s tax code has now been changed in a way that benefits wealthy taxpayers and foreign investors while asking more from low and middle-income taxpayers.

The new law also paves the way for significant reductions in the federal programs and services that ensure the economy is functioning efficiently and effectively, and that more people are connected to opportunities.

Recent analysis from the Institute on Taxation and Economic Policy provides detailed information about the ways in which the final tax plan hurts low- and middle-income families and how it benefits the richest 5 percent of taxpayers in North Carolina and foreign investors.

North Carolina’s low- and middle-income taxpayers will be impacted disproportionally by the new tax law, as more than 1 million people will see a tax hike by 2027, due to phase-in of various tax changes that mostly benefit the rich.