Who Got the Biggest Percentage Tax Cuts?
The Surprising Truth About Tax Cuts
The answer may surprise you.
In the ongoing debate about tax cuts, there is a common misconception that the wealthiest individuals receive the largest tax cuts. While it is true that high-income earners pay a significant portion of federal taxes, it does not necessarily mean that they receive the highest percentage tax cuts.
Recent reporting by the Wall Street Journal has shed light on this issue, revealing that the lowest income quintile actually experienced the largest percentage decrease in taxes following recent tax legislation.
Despite the Wall Street Journal being traditionally associated with conservative viewpoints, the news pages have often been criticized for their left-leaning bias. However, reporters Richard Rubin and Karen Dapena highlighted this surprising finding in a recent news story.
According to their analysis, the average change in federal taxes paid in 2026, due to the new tax law, is as follows:
- -15.1% for the lowest quintile
- -14.9% for the second quintile
- -12.6% for the middle quintile
- -11.1% for the fourth quintile
- -9.2% for the 80-90 percentile
- -9.5% for the 90-95 percentile
- -11.2% for the 95-99 percentile
- -7.1% for the top 1%
UPDATE: It’s important to note that the above discussion pertains to the tax legislation passed by Congress and signed by the president, excluding any tariffs unilaterally imposed.
