On December 22, 2017, Trump signed the tax cut bill into law, with lofty promises and few results. Krugman explained that the tax cut has not accomplished what Trump said it would.
“Its proponents made big promises about soaring investment and wages, and also assured everyone that it would pay for itself; none of that has happened,” he wrote.
Krugman shared a series of graphs showing “the tax cut induced some accounting maneuvers, but did nothing to promote capital flows to America.”
Trump’s tax cut, doubled the standard deduction, cuts individual income tax rates, and eliminated personal exemptions. Krugman said that people ended up poorer because of the tax cut.
“No money has, in fact, been brought home, and the tax cut has probably reduced national income. Indeed, at least 90 percent of Americans will end up poorer thanks to that cut,” Krugman said.
Krugman added that the tax cut “certainly made most Americans poorer.”
“So it’s a near-certainty that the vast majority of Americans will be worse off thanks to Trump’s only major legislative success.”
Read the full report here.