The text of the bill is available, and one of the winners is . . . me! The increased standard deduction and the lower individual marginal rates will cut my taxes by thousands of dollars, and I may be able to take advantage of the pass-through deduction, although that is not completely clear right now.
Since the purpose of the tax cut is to promote investment, increased productivity, and higher wages, it is fair to ask what I will do with the additional money. Here’s your answer:
- I won’t hire any employees (I don’t have any);
- I don’t intend to work any harder (if anything, I’ll work less);
- I obviously won’t increase wages; and
- I don’t intend to increase consumption at all.
The additional funds will be put away for retirement–in other words, they’ll be invested in the markets with the expectation that asset prices will increase. That, in a nutshell, multiplied by millions, is what you can expect from the tax cut, which is not what the GOP has promised.