Biden Covid relief plan gives bigger boost to lower-income Americans than Trump tax cuts, study says

President Joe Biden’s coronavirus relief plan will boost low-income households more than the tax law signed by former President Donald Trump did, an analysis shows.

The $1.9 trillion pandemic aid bill as passed by the Senate will raise after-tax income by about 20% on average for households making $25,000 or less, or the bottom 20% of earners, according to Tax Policy Center estimates released Monday. The typical first-year tax cut for those households under the 2017 Republican plan was 0.4%.

The two plans will have vastly different effects on the highest earners, the analysis found. Average after-tax income for households making more than $3.4 million, or the top 0.1%, would not rise under the coronavirus relief bill. It increased by 2.7% under the GOP law.

All told, low- and middle-income households would receive more than two-thirds of the tax benefits from the Biden stimulus plan, versus only 17% under the Republican tax law.

The pandemic relief bill passed by the Senate is expected to get through the House on Wednesday. Biden is set to sign it into law by the weekend.