According to Bloomberg, Republicans cut taxes for two-thirds of Americans. They were confident that the tax cut would pay for itself and Americans would be grateful. Unfortunately, the cuts have only increased the deficit and most taxpayers didn’t even notice that their taxes went down. This will make it difficult for Trump to use the tax cuts as an example of his success in his 2020 election.
“The Democrats really outmaneuvered the Republicans by convincing the American people that the main thrust of the tax reform package was to cut taxes for the wealthy,” said Dan Eberhart, a Republican donor who runs Canary, LLC. Republicans “failed to fully explain the success to voters.”
When Trump visits Minnesota, a swing state, on Monday, he will try again to promote his “achievement.”
In December 2017, Senate Majority Leader Mitch McConnell promised that the new tax law would contain the deficit and produce revenue. Just last week, economic adviser Larry Kudlow insisted that the tax cut package has mostly already paid for itself. His report conflicts with government data.
In fiscal year 2018, the budget shortfall grew 17 percent to $779 billion. The Congressional Budget Office says this is partly due to the tax law.
An NBC/Wall Street Journal poll this month showed that only 17% of Americans think that their taxes were cut. Last month, a Reuters/Ipsos poll found that 21 percent of people thought their taxes were lowered. The move was too small for people to notice.
The tax law lowered corporate tax rates from 35% to 21% and cut individual taxes for eight years. It also tightened certain tax breaks. The main beneficiaries of the plan were large businesses, and those benefits will only become more apparent.
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