Every congressional district gets a tax cut in 2018. Economic modeling by Kevin Dayaratna, Parker Sheppard, and Adam N. Michel finds that the Tax Cuts and Jobs Act will benefit the typical taxpayer in every congressional district:
Due to the TCJA, the typical household in every congressional district will see a reduction in tax liability in 2018. Nationally, 89 percent of Americans will see either a tax cut or no change. Approximately 4 million more low-income filers will not pay any income taxes in 2018. […]
There is a significant range in the size of the average tax cut among all filers across the 435 congressional districts, ranging from an average of slightly above $395 (New York’s 15th district, represented in the House by Jose Serrano) to $3,332 (California’s 18th district, represented in the House by Anna Eshoo). For families of four, the comparable range is from $625 (NY–15) to $5,682 (CA–18). […]
[H]ouseholds in West Virginia on average will see an $873 tax cut in 2018, which corresponds to a 14 percent reduction in income taxes, the largest benefit of any state by this measure. The smallest tax cut goes to the residents of the District of Columbia, who can expect a more modest 10 percent decrease in 2018 income taxes. This reduction, however, of over $1,600 for 2018 is also a large tax cut and is more than enough to pay for 12 credits of tuition at the University of District Columbia’s Community College. […]
[T]he TCJA’s tax cuts, measured on a percentage basis, benefit lower-income districts more than districts with larger incomes in bigger population centers, contrary to some claims put forward by opponents of tax reform.
For example, NY–15 will see a 32 percent decrease in income taxes as a result of the TCJA, the largest percentage reduction of any congressional district in the country. Taxpayers in East Los Angeles, in California’s 40th congressional district, represented in the House by Lucille Roybal-Allard, benefit from a 21 percent reduction in tax liability. Both NY–15 and CA–40 average less than $36,000 in total income per filer and receive average tax cuts of $395 and $510, respectively.
[Kevin Dayaratna, Parker Sheppard, and Adam N. Michel, “Tax Cuts in Every Congressional District in Every State,” The Heritage Foundation, July 23]
Visit www.taxesandjobs.com for a state-by-state and district-by-district breakdown of the tax cuts and their economic effects.