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Two years ago today, Republicans in Congress passed a sweeping tax cut. It was supposed to be a gift-wrapped present to taxpayers and the economy. But in hindsight, it looks more like a costly lump of coal.
“Our focus is on helping the folks who work in the mailrooms and the machine shops of America,” he told supporters in the fall of 2017. “The plumbers, the carpenters, the cops, the teachers, the truck drivers, the pipe-fitters, the people that like me best.”
In fact, more than 60% of the tax savings went to people in the top 20% of the income ladder, according to the nonpartisan Tax Policy Center. The measure also slashed the corporate tax rate by 40%.
“Not surprising, if you cut taxes, you get less in revenues,” MacGuineas said. “And what we’ve been doing at the same time is we’ve been increasing spending. And no surprise, our deficit has exploded.”
Perhaps it’s an acknowledgement of that sentiment that the president is now talking about another round of tax cuts, after the 2020 election. “We’re going to be doing a major middle-income tax cut, if we take back the House,” Trump promised in November.
The president made similar promises before last year’s midterm election. But the follow-up to his 2017 tax cut never materialized.