The Congressional Research Service, a division of the Library of Congress, has released a preliminary report detailing the effects of the 2017 Tax Cuts and Jobs Act, which lowered marginal tax rates and made other modifications to the tax code for the 2018 tax year and beyond.
The service reports that there was no discernible change in federal gross domestic product (GDP) and that “the growth effects tend to show a relatively small (if any) first-year effect on the economy.” Neither GDP nor wages saw a statistically significant change.
The Congressional Budget Office initially estimated that total revenues would fall by 163 billion dollars, with individual taxpayers saving 65 billion and corporations 94 billion. The study shows that the corporate tax cut was far higher and individual taxpayers actually paying more taxes in the aggregate (which was not our experience at The Blau Company).
To read the full non-partisan report, click here.