Tax impact is totally at odds with Mr. Jenket’s analysis

To The Daily Sun,

Mr. Jenket’s emphasis on “facts” and the “truth” in his letter “Statistics show the rich paid more under the tax change” published Nov. 7 is a breathtaking abuse of data and a remarkably inaccurate perspective on the substance of the publications he cites via links.

Nothing more than just reading The Institute on Taxation and Economic Policy’s “TCJA by the Numbers”, the 2nd link Jenket’s cites, is required. According to ITEP’s analysis, in 2020 the poorest 20% of US households will recognize $1.9 billion in tax reductions from Trump’s tax cut, the second 20% of households will recognize $12.4 billion in tax reductions, the middle 20% $24.4 billion, the fourth 20% $42.5 billion, and the top 20% $205 billion, eight times tax benefits of the middle class. The richest 1% of households are estimated to get a $78 billion tax break from Trump’s tax cut, more than 700 times the amount for the average household in the lowest 20% of the income distribution. And foreign investors’ tax benefit is 20 times the benefit of the lowest 20% of the income distribution.

The results for New Hampshire households are estimated to be no different. For New Hampshire households, the tax effects of the Trump tax cuts for 2020 are estimated to be -$180 per household for the poorest 20% of households, -$600 for the second 20% of households, -$980 for the middle 20% of households, -$1,670 for the fourth 20th of households, -$3,480 for the highest 20% of households, -$12,600 for the highest 4% of households, and -$54,480 for the highest 1% of households.

ITEP’s analysis is based on microsimulations across income and wealth distributions and it recognizes the important distributional effects of the estate, pass-through-business, and corporate taxes. In sum, it paints a picture totally at odds with Mr. Jenket’s “analysis”.

Mr. Jenket is right. We should value truth. We should value data. We should value analysis.

Eric Herr

Hill