Hurray! The Republicans in Congress passed and President Trump signed the largest tax cut in decades. Corporations get a huge permanent tax cut, from 35 percent to 21 percent. The wealthy also get a big tax cut. For the middle class, a few will have just the right circumstances and will receive a large tax cut. A few unlucky taxpayers will see in increase in their income tax. But most taxpayers will likely get an extra $40 to $80 a month.
I suggest that when you get your first paycheck with extra money from the tax cut, order a couple pizzas and invite your kids or grandkids over to celebrate. Then be sure to thank them for the pizza, as they will be paying for it years from now.
The tax cut will add about $1 trillion to the national debt over the next decade, even using rosy predictions about the tax cut expanding the economy and generating more tax revenues. Your kids or grandkids will be paying for the pizza with interest, and for all the extra money you get from the tax over the next eight years before it expires. When the Republicans tell you how great the tax cut is, you need to think of it as a loan from the government that your kids have to pay back, because that’s exactly what it is.
Enjoy your pizza.