Economics
Trump’s Tax Cuts Made a Difference in 2018. Just Not the One Backers Were Hoping For
The economic stimulus has dissipated pretty quickly, but the deficits will endure.
President Trump shows his signature on a $1.5 trillion tax overhaul package in the Oval Office of the White House on Dec. 22, 2017.
Photographer: Evan Vucci/APThis article is for subscribers only.
The Tax Cuts and Jobs Act that President Trump signed a year ago seems to have boosted economic growth in 2018. But there’s little evidence yet that it’s setting up the U.S. economy for faster growth over the longer term, which is what the White House and the legislation’s backers in Congress promised.
There’s a lot we still don’t know about the impact of the TCJA, given that the tax code is just one of many variables influencing the economy. “There will never be the smoking-gun study that says, ‘This was the effect,’ ” says Joseph Rosenberg, a senior research associate at the Urban-Brookings Tax Policy Center.