REUTERS/Jonathan Ernst
President Trump signing the Tax Cuts and Jobs Act.
- President Trump accomplished his signature legislative achievement two years ago: the Tax Cuts and Jobs Act, which permanently slashed the corporate tax rate.
- Supporters of the law argued it would improve worker productivity, raise wages, and supercharge economic growth.
- But the law achieved none of the ambitious goals Republicans put forward, and there are few signs they ever will.
- Here are seven charts that show why the tax cuts were not the economic "rocket fuel" that Trump promised.
- $4.
Two years ago, President Trump accomplished his signature legislative achievement: $4
The law was $4 to the nation's tax code in three decades, and the president $4 as "rocket fuel" for the American economy. It permanently slashed the corporate tax rate to 21% from 35% while also providing temporary benefits for individuals and their families.
Critics argued it was a windfall for massive corporations at the expense of the middle class. Meanwhile, supporters of the tax cuts $4 an economic bonanza. Businesses would invest in their operations, they said, $4 in improved worker productivity and higher wages.
Treasury Secretary Steve Mnuchin, among others, $4 would juice the nation's gross domestic product to 3% (or more, as Trump $4 6%) and soon pay for itself and spread prosperity.
But the law has achieved none of the ambitious goals that Republicans put forward - and there are scant signs they ever will.
There were short-term bumps in GDP growth and business investment that faded relatively quickly. Wages increased, but not to the extent Republicans promised.
And the law's hefty price tag has not been offset by more tax dollars flowing to government coffers. Corporate tax receipts are $4 since fiscal 2017. The Congressional Budget Office projected the GOP tax cuts will $4 by $1.9 trillion over a decade.
Further, $4 evidence suggesting that corporations are now paying the lowest tax rates in four decades. The average rate last year for 400 of the largest US companies averaged out to 11.3%.
Here are seven charts demonstrating why the tax cuts were not the "rocket fuel" Trump promised.