Trump Tax Cuts Leads To Huge Losses For U.S. Tax Revenue
U.S. tax revenue, in proportion to GDP, decreased the most out of any country in the world in 2018, according to CNBC.
The Organisation for Economic Co-operation and Development released the report on Thursday. The loss in tax revenue is largely attributed to President Trump's $1.5 trillion tax cut. From 2017-2018 the U.S. tax-to-GDP ratio declined from 26.8 percent to 24.3 percent.
The tax bill was signed in 2017 and cut the corporate tax rate from 35 percent to 21 percent. Other significant changes were temporary cuts to individual tax rates and limiting state and local tax deductions.
Trump intended for the tax cuts to stimulate business investment and increase economic growth but, unfortunately, neither of these goals has materialized. Instead of capital investments, companies bought back a record $806 billion in shares in 2018.
Last month Larry Kudlow, Trump's top economic advisor, alluded towards a possible middle-class tax cut. However, with the 2020 election on the horizon, it is unlikely that the majority Democratic House would pass any bill that could help contribute to Trump's reelection resume.
U.S. tax revenue in 2018 decreased the most out of any country in the world and Trump's 2017 tax bill is partially to blame.