What should we expect from the recent tax cuts? In a word, “growth.” At Townhall Finance, we recently reviewed the historical data around the Kennedy, Reagan and Bush tax cuts.
What we found is that the economy slowed while waiting for the tax cuts to kick in, and then boomed afterwards. So far—true to form—we’ve seen the economy slow down a bit at the end of 2017 and then show real signs of strong growth this year. The Atlanta Fed, hardly Trump’s home team is forecasting greater than 5 percent growth this year. What would that mean for us? About 400 billion dollars of new wealth this year alone.
Let’s say you take your typical tax cut and invest it. Over 30 years it could result in $53k dollar in additional income for your family. We’re talking about real money—the kind of money which can help the Republicans in Congress do much better in the elections than the talking heads are predicting.