Paul L. Caron

Wednesday, January 1, 2020

Trump's Tax Cut Has Failed Most Of Us

Los Angeles Times op-ed:  Trump's Tax Cut Has Failed Most Of Us, by Frank Clemente & William Rice (Americans for Tax Fairness):

Americans For Tax Fairness (2019)President Trump’s radical Tax Cuts and Jobs Act, which took effect Jan. 1, 2018, has now been around long enough for a fair assessment. The verdict’s not good. The second anniversary is an apt time to review some of the law’s biggest failures — especially since the president is inviting more trouble by considering another tax-cut boondoggle as an election-year ploy.

Rushed through Congress by a Republican majority, the Trump-GOP tax cuts were promoted as a boon for the middle class. Yet in 2020, according to the Institute on Taxation and Economic Policy, the richest 1% of taxpayers will get an average tax cut of around $50,000, 75 times more than the average cut for the bottom 80%. ...

Republicans assured us their tax cut would “pay for itself” because economic growth would generate higher revenue from lower rates. Instead, federal debt has exploded: This year’s deficit of almost $1 trillion is up by half from the year before the tax cuts and about double the average deficit in Obama’s last three years.

Unless you’re a millionaire, the second birthday of the Trump-GOP tax cuts is nothing to celebrate.

Americans For Tax Fairness, Sunday Marks Two-Year Anniversary of Signing of the 2017 Trump-GOP Tax Law:

Sunday, Dec. 22, [marked] the two-year anniversary of the Tax Cuts and Jobs Act, the signature legislative achievement of the Trump Administration. While President Trump and Republicans still proclaim the law a success, data from independent and authoritative sources overwhelmingly shows that the many promises that helped convince lawmakers to speed enactment of the tax overhaul have failed to come true.

A new report by Americans for Tax Fairness, Chartbook: Trump-GOP Tax Cuts Failing Workers and the Economydetails eight key promises made by Trump and the GOP to help get the tax cuts enacted into law. (The law took effect Jan. 1, 2018.) The report uses the latest economic data that shows their rosy scenarios have wilted in the glaring light of actual facts.

And a report from the Institute on Taxation and Economic Policy (ITEP) shows 91 profitable Fortune 500 corporations—including Amazon, Chevron, Halliburton and IBM—paid no federal income taxes in 2018 the year following the tax law’s passage. Moreover, 379 profitable corporations paid an effective federal income tax rate of just 11.3% on their 2018 income, slightly more than half the 21% corporate tax rate—which already had been slashed down from 35% in 2017.

Taken together, the two reports paint a devastating picture of true impacts of the costly $1.9 trillion Republican tax plan, as estimated by the Congressional Budget Office. The ATF report catalogues the many predictions about who would benefit most from the tax cuts (including a $4,000 family pay-raise guarantee), how much they would cost and how much the economy would grow, and how each of those promises have proven false. The ITEP report shows that while the tax law cut the corporate rate by 40% – from 35% to 21% – financial data from 379 profitable corporations show they paid an effective federal income tax rate of just 11.3%, the lowest in decades.

“In 2017, we were told repeatedly that the giant, unpaid-for tax cuts for the wealthy and corporations would increase jobs, pay for themselves, give every family a big raise and would really hurt rich people like Donald Trump,” said Frank Clemente, executive director of Americans for Tax Fairness. “Two years later, the evidence is in, and all their promises look like a Macy’s parade balloon the day after Thanksgiving.”

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And yet, a record number of Americans are employed and a significant number are able to get off of the social safety net programs (e.g., SNAP enrollment declines nationwide). Isn't that more important than spinning up the envy machine?

Posted by: ruralcounsel | Jan 6, 2020 3:44:24 AM

In other words: “wah! wah! #resist! bad orange man took our real estate tax deductions!”

Posted by: Anon | Jan 5, 2020 11:23:25 AM

“Two years later, the evidence is in, and all their promises look like a Macy’s parade balloon the day after Thanksgiving.”

Super-nice phrasing for super un-nice facts.

Posted by: Gerald Scorse | Jan 4, 2020 1:37:21 PM