Was the 2017 Tax Cuts and Jobs Act a scam? The Forbes magazine article by Chuck Jones ("Trump’s Additional Budget Deficit …") uses U.S. Treasury, September 2018 webpage data to discuss the 2018 income tax revenues. The article indicates there are three basic income tax groups:
1. Corporations paid $92 billion less in 2018.
2. Individual taxpayers paid $96 billion more in 2018.
3. The U.S. Treasury received only a $4 billion increase over 2017 revenues.
Corporations paid in $92 billion less through September 2018 despite the fact that their massive tax cuts did not take effect until 2019. And despite the much heralded tax-cut-for-all claims, the individual taxpayers paid in $96 billion more in 2018 than in 2017.
If the goal of the 2017 tax act was tax cuts for all, was it a failure, not true at all, or was the stated goal, actually, just a scam to transfer wealth from the lower income taxpayers to the rich? It seems the lower tax rate savings were insignificant compared to the income tax increases caused by the loss of tax deductions.
The 2017 tax code changes were very similar to Ronald Reagan’s 1986 revenue neutral tax bill changes, which resulted in the same overall tax increase on individual taxpayers.
Grover Norquist (Americans for Tax Reform and the K-street and Tax Pledge architect) promoted both Reagan’s 1986 revenue neutral tax bill and the 2017 tax bill. Tax scams or just more Voodoo Economics?
Rep. Cheri Bustos was right (about the tax cuts) then, and still is.