Whoever has control of Sen. John Hickenlooper’s X account has been having a field day arguing against the “Big Beautiful Bill” now slowly working its way through Congress. Virtually every post there ends with some variation of “tax cuts for the ultra wealthy.”
Leave aside the irony of a guy whose latest financial disclosure form puts him at a net worth north of $10 million waging class warfare against the “ultra wealthy.” And leave aside the fact that if you think this is Medicaid reform, you ain’t seen nothin’ yet.
The fact is, the bill does not contain tax benefits only for the Big, Beautiful People. One of its main purposes is to extend or make permanent the tax cuts and simplifications from Trump’s first administration, the Tax Cuts and Jobs Act (TCJA), the ones that benefit the middle class.
The Tax Foundation has done yeoman work documenting these changes, including a calculator for what happens to your taxes if the TCJA expires.
In addition to the rate cuts, the TCJA also adjusts all tax brackets except the highest for inflation, keeps the child tax credit from expiring and indexes the $2,000 maximum credit to inflation. It also raises the child tax credit phase-out; right now the $400,000 limit for joint filers would drop to $110,000. There are also expiring fixes to the Alternative Minimum Tax, originally intended for only the highest earners, but now ensnaring more and more upper-middle class families.
One underappreciated benefit for the middle class also scheduled to expire is the vastly expanded personal deduction, making it more beneficial for many taxpayers than itemizing. It saves them immense amounts of time and money, and also keeps them from making potentially audit-inducing errors, something that they can afford far less than the “ultra wealthy.”
For most Colorado taxpayers, making the Trump tax cuts permanent is good for their bottom lines, and those who let Sen. Hickenlooper’s brand of class envy get the better of them are in for an unpleasant tax day surprise if their emotions become policy.
Joshua Sharf is a Denver resident and regular contributor to Complete Colorado.