The 2017 tax cut has been the signature piece of legislation during President Donald Trump's first term -- but so far it's been a massive dud with voters, as it didn't stop the GOP from losing 40 seats in the House of Representatives during the 2018 midterm elections.
A new analysis by CBS News shows that the GOP's tax cut is now delivering even less money to Americans than it did a year ago because the president's trade wars with multiple countries have acted as taxes on consumption -- and they have almost completely wiped out the benefits from the original cut.
"The Tax Cuts & Jobs Act delivered tax savings to the average American family of about $930 per year, according to the Tax Policy Center," CBS explains. "But so far, the tariffs alone on Chinese imports are adding costs of $831 for the average family in the U.S., according to economists at the New York Federal Reserve. In 2019, the typical American family -- meaning a family in the middle of the income distribution, earning about $56,000 per year -- is only ahead by about $100."
And if Trump enacts his threatened tariffs on Mexico next week, even that $100 could be completely wiped out. In fact, CBS cites one estimate from economist Gary Hufbauer claiming that "the typical American family could face additional costs of $1,700 per year if the tariffs on Mexican imports reaches the threatened 25 percent threshold."