Tax Cuts Allow Rich to Become Richer as National Debt Soars

President Donald Trump’s tax cuts have been widely criticized for exacerbating the national debt while allowing the rich to become even richer. The 2017 Tax Cuts and Jobs Act (TCJA) was passed by Congress with a simple majority, and was signed into law by President Trump in December of that year. It is estimated that the TCJA will add $1.9 trillion to the national debt over ten years, according to an analysis from the Congressional Budget Office (CBO). The TCJA includes numerous provisions that are beneficial for wealthy individuals and corporations, such as a reduction in the corporate tax rate from 35% to 21%, and a new top individual income tax rate of 37%. These changes have allowed wealthy individuals and corporations to save billions of dollars in taxes each year. In addition, many wealthy individuals have taken advantage of other provisions in the law, such as pass-through deductions for business owners, which allow them to pay lower taxes on their income. Critics argue that these tax cuts are not only unfair but also unsustainable. The CBO estimates that over 80% of the benefits from the TCJA will go towards those making more than $100,000 per year by 2027. This means that most Americans will not see any significant benefit from these tax cuts while their taxes may actually increase due to rising deficits caused by increased spending and decreased revenue resulting from lower taxes on wealthier taxpayers. The impact of these tax cuts has been felt across all levels of government as well. State governments have seen their revenues decline due to reduced federal funding caused by increased deficits at the federal level, leading many states to cut back on services or raise taxes in order to make up for lost revenue. This has put additional strain on state budgets already struggling with rising costs associated with healthcare and education expenses. At a time when economic inequality is already at record highs, President Trump’s tax cuts are further widening this gap between rich and poor Americans while increasing our nation’s debt burden at an alarming rate. Until meaningful reforms are enacted that address both our growing deficit problem and economic inequality crisis simultaneously, it appears likely that this trend will continue unchecked under President Trump’s watchful eye.