This month marks the two-year anniversary of President Trump’s major legislative accomplishment: his rewrite of the tax code. As we head into the election year, you can bet that taxes and the economy will be topics of debate. President Trump will, no doubt, want voters to give him credit for his tax law, which he promised would lead to more investment, more jobs, higher wages and faster growth.
But none of those promises have been fulfilled. From a purely economic standpoint, the Tax Cuts and Jobs Act of 2017 has been an enormous flop.
We have been told, over and over again, that tax cuts for the rich are good for the overall economy. However, there’s not much solace to be found in gross domestic product either. In the four years before the law passed, real GDP grew by an annual average rate of about 2.4%, according to data from the Bureau of Economic Analysis. In the nearly two years since, the GDP growth rate has inched only slightly higher to an annual average of 2.5%.