Few details are presently available about what the president will be proposing later on in his campaign for reelection regarding his “tax cuts 2.0” package, but the rumors are tantalizing. If Republicans regain control of the House, many of those rumors could be enacted.
It was Larry Kudlow, Trump’s economic advisor and head of his National Economic Council, who timed his announcement as a Christmas present to the American taxpayer. On December 19, Kudlow said on Fox Business Network’s Bulls and Bears, “If [Trump] mentions tax cuts 2.0 — and I’d love to do it — he will be talking about something that’s under process and wouldn’t be published until we’re well into the campaign [in 2020].”
The first iteration — the Tax Cuts and Jobs Act of 2017 — passed the House by a vote of 227-205 and the Senate by 51-48 and included significant tax reductions for both individuals and corporations. It also reduced the alternative minimum tax for individuals and eliminated it altogether for corporations. In addition, it canceled the ObamaCare penalty for anyone not enrolled in a health insurance plan.
The Act became effective on January 1, 2018 and, unless renewed, will expire in 2025.
The results have been remarkable: Unemployment is at its lowest level
in nearly half a century, with minority joblessness plunging. The
popular stock market indexes have hit new highs. The poverty rate has
fallen to a 17-year low and more than six million Americans have moved
off SNAP — the government food stamp program. The average American
taxpayer saved $2,000 in taxes in 2018, while the average American
household’s median real (after inflation) income has jumped by nearly
$5,000 a year.
In addition to the Tax Act, the Trump administration has cut more than eight regulations for every new one enacted, resulting in initial savings of $50 billion. Those savings are expected to exceed $200 billion once the rollbacks are fully implemented. And the recently announced U.S.-Japan trade agreement will lower trade barriers and increase American exports to that country.