Writing for New York magazine, Jonathan Chait calls attention to a review by the nonpartisan Congressional Research Service of the measurable impact so far of the tax cuts for the wealthy that were President Donald Trump’s major legislative accomplishment so far.
Big surprise. Rather than stimulating so much economic growth that they would pay for themselves as some of its architects claimed (as they always claim in order to justify tax cuts for the wealthy), the amount of new revenue attributable to the stimulus effect was roughly 5 percent as large as the amount of revenue lost by the cuts themselves. That’s $1 of benefit for every $20 of revenue loss. The other $19 just gets added to the deficit/debt picture (and to the wealth of those corporations and individuals who would otherwise have paid the tax).
From Chait’s analysis, according to CRS:
Growth has not increased above the pre-tax-cut trend. Neither have wages. After a brief and much smaller than expected bump, repatriated corporate cash from abroad has leveled off.
In other words, tax cuts for the rich and corporations are great, for the rich and corporations. The national debt is growing at rates not seen since World War II.
Chait’s full piece is here.