The $1 trillion corporate tax cut is fizzling. Republicans pushed through the tax reform bill pledging it would free corporations to reinvest in their businesses and increase productivity. That has yet to materialize. Businesses were supposed to take the money they saved on their taxes and put up new factories, buy new equipment, and invest more in the ideas and technology of the future.

That was how the Trump administration was going to make good on its promise to increase the growth rate from around 2% to 3% or even 4%. What went wrong?

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Emma Dahl

Emma Dahl

While tax cuts can help to bolster the economy, recessions are also a natural part of the economic cycle. The tax cuts helped to grow the economy, but likely delayed the next recession back, instead of circumventing it entirely. Additionally, using tax cuts in a growth period means that there will be fewer cuts to make during the next recession to help speed the recovery.