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Update on the tax bill
Remember the bill passed late last year that cut taxes across the board? Consumers and corporations are starting to feel the benefits. At the time, each side of the political spectrum provided their own predictions as to what would result. Democrats predicted doom and gloom. Republicans predicted rainbows and sunshine. A few months into the new tax code, each side is giving updates on their predictions.
If you’re unfamiliar with how the tax reform went down, check out the article we did on the historic bill here!
Wall Street Journal: U.S. Consumer Confidence Reaches Highest Level Since 2000
Washington Examiner: Democrats battle 'communications challenge' over opposition to tax reform
The right highlights Democrats’ troubles in continuing their opposition to the tax bill because many Americans are starting to come around to it after its initial unpopularity. Thus, Democrats are finding it harder to oppose the tax cut without alienating their constituents, who are seeing their wallets grow. The right points to high consumer confidence as evidence that the tax cuts are already starting to benefit Americans.
The left says they correctly predicted that corporations would keep the tax benefits for themselves by using extra cash to compensate senior execs and buy back stocks, instead of investing in their workers. Also, while they do admit that many people are seeing bigger paychecks, they note that an extra $1,000 people receive will be nothing compared to the amount their children and grandchildren will have to pay to foot the bill as a result of the debt this tax bill will add.
What are the implications of this tax bill?
If more and more people start to see their take-home pay grow, which is to be expected, it could be a crucial accomplishment Trump can use to muster support for his reelection campaign. As for judging the tax bill’s success, it’s too soon to say whether it is a net positive or negative for the economy. The short term gains are definitely real, but longer term is still up in the air.
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