Economic upheaval caused by the pandemic has clouded analysts’ ability to understand the effects of the 2017 tax law. Republicans call it a huge success and want to extend it anyway.Seven years ago, Republicans passed a major overhaul of the tax code, with the belief that it would boost investment, raise wages, and rev up the American economy. However, the impact of the law is now largely unknown due to the pandemic and inflation that followed soon after its passing in 2017. This has made it difficult for policymakers to fully understand the effects of the tax cuts as they consider committing $5 trillion towards continuing it. Economists have only been able to analyze the data from 2018 and 2019, which is a limited window for measuring the long-term effects of the law. The pandemic has made it nearly impossible to accurately assess the law’s impact on investment and growth, as these effects can take years to fully materialize. As a result, it is challenging to draw any definitive conclusions about the success of the tax cuts.
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