This December marks one year since the passage of the Tax Cuts and Jobs Act. Republicans in Congress sold the American people on their tax overhaul by claiming that lowering the corporate tax rate from 35% to 21% would allow companies to invest in growing their businesses and create more jobs here at home. They also touted this bill as alleviating the tax burden for middle-class families — telling workers that they could expect a $4,000 a year wage increase under his new bill.
One year later, has the Tax Cuts and Jobs Act delivered on its promise to grow American businesses, raise wages, and put more Americans to work? The answer is no.
The Institute on Taxation and Economic Policy (ITEP) found that most of the financial benefits in the first year of this bill have gone to top earners in the United States, including CEOs, company executives, and shareholders. Additionally, only a small percentage of workers saw temporary or one-time pay boosts and bonuses — not the $4,000 per year blanket pay increase originally promised to middle-class families by Congress.
In addition, the ITEP found that the Tax Cuts and Jobs Act will increase economic and wealth inequality, drive up the national deficit, and continue to have no significant impact on boosting growth or jobs. These findings come just one month after General Motors — who received a $150 million tax break under this new bill — announced their decision to close plants, move production of their products to Mexico, and lay off 14,000 American workers this holiday season.
Read the ITEP’s full analysis of the first year of the Tax Cuts and Jobs Act here.
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