Thursday, August 25, 2022

Though they don’t want to admit it, Democrats left the Tax Cuts and Jobs Act intact for good reason: it’s sound policy.

Biden signed the Inflation Reduction Act (IRA) into law

  • Already, the Congressional Budget Office projects that the law will have zero impact on inflation.
  • Biden's IRA raises tax revenue by imposing a 15 percent tax on corporate book income (the income that corporations report on financial statements to shareholders).
  • Outlines the definition of taxable income from the Internal Revenue Code-written by the people's elected representatives to Congress-to the private, unelected Financial Accounting Standards Board.

The Tax Cuts and Jobs Act (TCJA)

  • The TCJA was a fiscal white whale that Democratic leaders promised to harpoon, yet they left it unscathed. One explanation for why comes from Manhattan Institute senior fellow Brian Riedl.
  • Perhaps Democrats became trapped by their own successful messaging campaign against the TCJA, which prevented them from publicly admitting its merits.

That work belongs to a future Congress.

  • For now, the TCJA remains intact
  • City Journal is a publication of the Manhattan Institute for Policy Research (MI), a leading free-market think tank
  • As a 501(c)(3) nonprofit, donations in support of MI are fully tax-deductible

https://www.city-journal.org/why-the-democrats-kept-trumps-tax-reform 

No comments: