Congress Won’t Tackle the Debt Until Americans Force the Issue – Kevin Kosar/Hill
Time to ‘say sayonara’ to taxes that fail to cover government costs?
Next year, Congress will have to deal with the TCJA – William Gale/Brookings
“Several effects of the law are clear. First, the good news. It simplified taxes for many households by reducing their dependence on itemized deductions and their use of the alternative minimum tax (AMT), although these gains were offset to some extent by more complicated taxes for businesses.
“The bad news is that it was expensive: The TCJA will have raised federal deficits and debt by more than $2 trillion over its first 10 years according to the Congressional Budget Office. Forget the idea that the tax cut will pay for itself—that is nonsense.
“More bad news: The TCJA exacerbated the already massive differences in the distribution of income. It made the rich richer and barely helped the poor. Urban-Brookings Tax Policy Center analysis shows that households in the lowest 20% of income distribution gained an average of about $60 per year. Annual tax cuts for the top 1% averaged over $50,000.”