More coal in our stockings: those “rocket fuel” tax cuts Mike Rounds gave us for Christmas two years ago still don’t work the way he promised. In addition to throttling charitable giving and increasing the deficit, the economy isn’t growing any faster than it was before the tax cuts, when America was governed by a decent man:
Since Americans for Tax Fairness made that chart in November, we’ve gotten figures from the Commerce Department showing our third-quarter GDP growth was only 2.1%:
The Commerce Department said Friday that the gross domestic product — the economy’s total output of goods and services — expanded at a moderate annual rate of 2.1% in the July-September quarter. A separate report showed that consumer spending grew by a solid 0.4% rate in November, the strongest gain since July, and that incomes rebounded after a weak reading in October [Martin Crutsinger, “US Economic Growth and Consumer Spending Show Resilience,” AP, 2019.12.20].
GDP growth would have been stronger if the Idiot-in-Chief didn’t keep sabotaging the economy:
The brisk pace of spending in November is a reassuring sign that consumers, who account for about 70% of economic activity, are helping the economy offset drags ranging from President Donald Trump’s trade wars to a global economic slump [Crutsinger, 2019.12.20].
The economy would also be growing faster if Trump and Rounds hadn’t shunted most of the tax cuts to their rich pals and had left more money in the pockets of lower- and middle-class consumers, whose power to stimulate the economy through their greater spending rates is well-attested:
In fact, more than 60% of the tax savings went to people in the top 20% of the income ladder, according to the nonpartisan Tax Policy Center. The measure also slashed the corporate tax rate by 40%.
…”For millions of middle-class Americans, it is not a very happy anniversary,” said Sen. Ron Wyden, D-Ore [Scott Horsley, “After 2 Years, Trump Tax Cuts Have Failed to Deliver on GOP’s Promises,” NPR: All Things Considered, 2019.12.20].
Ho ho ho.