Tax Cuts And Jobs Act Of 2017 Did Not Put Its Money Where Its Mouth Was
The Tax Cuts and Jobs Act of 2017 contributed to economic growth but did not live up what many backers of the law had promised, according to The Wall Street Journal.
“On the whole it was positive, in that it helped the broader consumer, but on the effective tax rate for us it was a lot less than you’d think,” Whirlpool Corp. Chief Executive Marc Bitzer said. Furthermore, he stated that the company did not see a significant change in its taxes or change its U.S. hiring or capital investment.
The tax cuts did have some effect. Tax bills decreased for families and corporations, employment and wages increased and the economy is better than projected at the start of President Trump's term. However, the federal deficit increased.
The trade war has also contributed to the lack of effect from the TCJA. Businesses have become unsure of what their costing system should rely on and fear of increasing capital investments due to uncertainty. Tax law backers promised that the tax law would pay for itself over the long run, but two years in the data shows otherwise.
The Tax Cuts and Jobs Act of 2017 did not live up to what many of its backers promised.