Tuesday, August 20, 2019

Update: The Failed Promises of the 2017 Tax Cuts and Jobs Act (TCJA)

by Calculated Risk on 8/20/2019 12:30:00 PM

Yesterday I wrote: The Failed Promises of the 2017 Tax Cuts and Jobs Act (TCJA)

I included this quote:
"This change, along with a lower business tax rate, would likely give the typical American household around a $4,000 pay raise." Donald Trump, October 19, 2017

However I didn't provide any analysis of the $4,000 number.

Here are two articles with analysis (ht JF)

From Motley Fool: Want a Tax Cut? Here's How Much Typical Americans Saved in 2018. The analysis suggests around $1,600 to $1,900, not $4,000.

And from the Heritage Foundation: The Truth About How Much Americans Are Paying in Taxes.

"the average American household paid about $1,400 less in taxes"