Analysis: Mid-range earners in Tennessee rank 25th highest on federal tax cut benefits


Middle-range income earners in Tennessee ranked 25th in the nation in terms of how they benefited from the federal Tax Cuts and Jobs Act, according to a new Tax Foundation analysis.

An interactive tool on the foundation’s website shows the average size of the 2018 tax cuts among specified income levels in each state’s congressional district. The 2017 federal tax reforms cut tax burdens for most Americans and may help to raise wages by improving the business climate nationwide, the foundation said.

The number of jobs added last year in Tennessee as a result of the income tax cuts was estimated to be 4,419. The average income tax cut for those in the state who earned between $50,000 and $75,000 annually was $1,392.05, according to the analysis.

The size of individuals’ tax cuts varies greatly depending on annual income levels. The online tool allows readers to track seven levels of average adjusted gross incomes, from $10,000 and under to $200,000 and up.

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Impact of Tax Cuts and Jobs Act by State

State

Estimated Jobs Added in 2018

Average Tax Cut (for Incomes of $50,000-$75,000)

Tax Cut Rank

Alaska

476

$1,516.26

1

North Dakota

622

$1,488.95

2

Utah

2,187

$1,478.97

3

Ohio

8,092

$1,476.26

4

Vermont

455

$1,472.48

5

South Dakota

637

$1,455.69

6

Wyoming

413

$1,439.44

7

Indiana

4,529

$1,438.51

8

Michigan

6,396

$1,437.19

9

New Hampshire

991

$1,435.68

10

Minnesota

4,271

$1,429.18

11

West Virginia

1,099

$1,428.26

12

Pennsylvania

8,693

$1,426.89

13

Colorado

3,936

$1,425.52

14

Iowa

2,293

$1,423.99

15

Maine

911

$1,423.27

16

Delaware

666

$1,422.89

17

Wisconsin

4,284

$1,411.88

18

Montana

687

$1,410.93

19

Kansas

2,052

$1,410.71

20

Missouri

4,184

$1,406.08

21

Nebraska

1,489

$1,405.21

22

Rhode Island

723

$1,402.18

23

Kentucky

2,793

$1,401.11

24

Tennessee

4,419

$1,392.05

25

New Mexico

1,217

$1,391.18

26

Washington

4,931

$1,386.88

27

Illinois

8,830

$1,385.98

28

New York

13,897

$1,385.14

29

Arkansas

1,800

$1,368.59

30

Connecticut

2,444

$1,367.85

31

Massachusetts

2,444

$1,367.85

32

Oklahoma

2,433

$1,356.03

33

Florida

12,642

$1,354.57

34

Arizona

4,098

$1,354.29

35

Alabama

2,941

$1,352.11

36

Hawaii

959

$1,345.29

37

Nevada

1,986

$1,341.35

38

South Carolina

3,068

$1,341.03

39

Louisiana

2,879

$1,335.76

40

North Carolina

6,507

$1,328.02

41

Texas

18,128

$1,324.56

42

Idaho

1,063

$1,318.93

43

Oregon

2,763

$1,308.50

44

New Jersey

6,041

$1,304.97

45

Virginia

5,782

$1,291.80

46

Mississippi

1,683

$1,279.01

47

California

24,701

$1,265.71

48

Georgia

6,526

$1,262.17

49

Maryland

3,952

$1,194.98

50

Source: Tax Foundation

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