NEW YORK — Taxpayers are expected to pay about $1 trillion less in federal taxes next year, according to a new report.
The Treasury Department released its second-quarter tax data Friday, showing that the top individual income tax rate fell to 2 percent from 2.9 percent in the previous year.
But the Tax Policy Center said the average rate on wages fell from 2 percent in 2013 to 1.4 percent in 2018.
Overall, the tax rate for married couples fell from 39.6 percent in 2017 to 35.3 percent in 2019.
President Donald Trump is proposing a cut of $1,500 for individuals and couples making more than $200,000 a year, a proposal that is being criticized by many conservatives and Democrats.
Trump is proposing to repeal the Affordable Care Act, which would raise taxes on the wealthiest Americans, including the richest one percent of taxpayers, as well as other tax breaks.
However, some Republicans have said the plan should not include such an enormous tax cut, which they fear could spur higher taxes on middle-class families.
A separate report released Friday by the nonpartisan Tax Policy Centre showed that the average effective tax rate on the top 2 percent of earners fell from 28.9 to 21.8 percent from 2019 to 2021.
Other changes included an increase in the standard deduction, which was $4,300 for married taxpayers with two children and $12,600 for single taxpayers.
In total, the top income tax bracket was reduced to 39.9 from 391.
While most of the tax cuts are for middle-income families, the Tax Foundation, which advocates for low- and moderate-income people, said the change could hurt lower-income taxpayers, who make up a smaller share of the population.
Its president, John D. Taylor, said in a statement that the nonpartisan tax-policy organization’s analysis showed that most tax cuts, such as for child care and retirement savings, are for lower- and middle-middle-income households.