Trump’s Tax Law Hasn’t Boosted The Economy
August 27, 2020
Despite Trump’s promises and his claims tonight, his tax law hasn’t boosted the economy and actually left it more vulnerable to recession.
Trump’s tax law had little if any effect on the economy.
The Hill: “The tax law’s effects on the economy were smaller than those predicted by a slew of forecasters and added that the economy’s growth was not consistent ‘with the direction and size of the supply-side incentive effects one would expect from the tax changes.’”
CNN: “The CBO estimates that about 0.3 percentage points of the 2.9% growth in gross domestic product in 2018 can be attributed to the tax cuts.”
Trump’s tax cut has failed to spur business investment, which he said would boost workers’ wages and job creation.
Washington Post: “Business investment has contracted over the past two quarters, falling 3 percent over the three-month period that ended in September — the steepest such drop since 2015.”
Trump’s tax law gave the economy a short-lived sugar high but ultimately left the economy more vulnerable to recession.
Los Angeles Times: “President Trump’s pre-pandemic economic blueprint of massive tax cuts and global trade wars not only failed to deliver the promised spike in growth and domestic investment, it now appears to have left the U.S. more vulnerable to the devastating financial impact of the coronavirus outbreak.”