The details of Donald Trump’s and Congressional Republicans’ tax cut have only just come out. And, the details tell all.
First, I would not go out and celebrate, unless you:
- are in the real estate business
- run a large corporation
- have millions (many) in the bank and plan to die in the next 8 years
- are a wealthy investment manager
- are in the liquor business
- are a tax accountant
And, even then, those above have only an eight-year window before the new cuts expire for individuals (but not for corporations). Eight years will go fast, and it could be much faster if the Democrats come into power in 2022 and reverse the tax cuts immediately.
But, most of all, it is important to understand that this is not a middle class tax “cut” for needy Americans. In fact, it is just the opposite. The wealthiest, from extremely wealthy to very wealthy, are clearly those who win here. And, the rest get a bone here and there, but nothing lasting and nothing that will seed the promise of continued and expansive economic growth.
So, be careful. Do not listen to those who tell you the good times are here again. Husband your resources and buy only what you need. Invest with great caution with every market at exceptionally inflated levels, saving the rest in the highest yielding savings accounts and CD accounts.
And, remember that the best lesson gleaned from all this talk about a tax cut for all Americans is that Congress is out for itself and certainly not acting in the public’s interests. In fact, all conservative principles about debt and taxes have been thrown out of the window to pass this bill.