In case you missed it, in Friday’s Wall Street Journal Larry Kudlow and Steve Moore offer this advice to Republicans for when they take back Congress next year:
The Tax Cuts and Jobs Act was designed to spur investment, hiring and innovation—and it worked….
Because of budget rules, these tax cuts will start expiring in 2023. If Congress does nothing, most Americans will pay more. The more generous child credit and the increased personal exemption, which are policies that Mr. Biden and the Democrats support, will be gone in 2025. Even more problematic for the economy is that the full expensing of capital investment for businesses begins to phase out next year…
Two years after the tax act passed four remarkable things happened. First, the economic growth rate rose back to 3% and was on track for closer to 4% in 2020 had it not been for Covid. Second, real median household income rose by almost $6,000 in two years—which was more than it rose during eight years under Barack Obama. Third, unemployment rates and poverty rates for blacks and Hispanics fell to at or below their lowest level in at least 25 years.
Last but not least, the share of taxes paid by the richest 1% of Americans actually rose. Income tax payments from the rich rose from 37% to 39% of the total tax take, while all other income groups paid a smaller share. There was an undeniable “Laffer Curve” effect—lower rates generated more growth and more tax revenues from the rich.
Sohn has repeatedly tweeted praise of the group Fight for the Future, collaborated with them on projects, and donated to them.