TCJA Post Mortem for Businesses: Has the TCJA Resulted in Economic Growth?March 06, 2020
Although enacted more than two years ago, the TCJA is still making an impact on businesses. Here’s a look inside our TCJA Post Mortem Update for Businesses.
With two years under our belts, many business owners are wondering if changes under the Tax Cuts and Jobs Act (TCJA) lived up to the expectations of lawmakers. Our TCJA Post Mortem Update for Businesses delves into the question on everyone’s mind…has the TCJA been a success or failure for the U.S. Economy?
Here’s a look at what’s inside our Post Mortem Update:
Economic growth due to the TCJA?
Economists generally agree that it will take years to fully evaluate the effectiveness of the TCJA, but to date it has received mixed reviews.
Over the last two years there have been positive indicators of economic growth including
- Increased wages
- Unemployment rates have dropped to 3.5% (lowest rate in half a century)
- Opportunity zones have revitalized low income communities
However, other factors point to the fact that, over the short run, there hasn’t been much change in macroeconomic growth before and after the TCJA. One statistic shows that gross domestic product (GDP) grew at an annualized rate of 2.5% in the 18 months after the TCJA was passed but the GDP growth rate was 2.6% in the 18 months prior to the TCJA.
Has the TCJA been in place long enough to evaluate its full effect? Check out our Post Mortem Update for more information on the impact of the TCJA on the U.S. economy.
Questions? Contact us.