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Justin Fox

Trump's Tax Cut Was Very Good to the $200,000 to $1 Million Set

Changes to the Alternative Minimum Tax brought big benefits to those with high — but not the highest — incomes, 2018 tax data show.

Strange things are happening with federal tax rates.

Strange things are happening with federal tax rates.

Photographer: Joe Raedle/Getty Images 

Who got the biggest tax cuts from the 2017 Tax Cuts and Jobs Act? Individual income tax return statistics for 2018 that were released late last year by the Internal Revenue Service allow us to see the impacts by income group, and they’re pretty interesting.

Those at the very top of the income distribution got tax cuts that were, as a percentage of income, not all that different from the middle to lower rungs. (Yes, there were some weird things going on below $10,000, but they can be chalked up to the vagaries of who files sub-$10,000-income tax returns, such as dependents with investment income.) The really big tax cuts were for those a little below the top, at adjusted gross incomes of $200,000 to $1 million a year.