The GOP's Tax-Cut Narrative Is Already Unraveling
The law’s role in boosting wages was overblown. Its deficits are scaring investors. And fears that it might accelerate inflation could push the Federal Reserve to choke off growth.
The big Republican tax cut isn’t even three months old yet. But it’s already confounding.
For months, critics (like me) that the new law would be a handout for large corporations, which would drive up their stock prices and enrich wealthy investors. Instead, the stock market has been a since Trump signed the tax cut into law. Many (myself included) predicted that companies wouldn’t pass on their fresh lucre to workers. Instead, several big firms celebrated the new and raises for workers. On top of that, wage growth in January to its highest level since the recession. The critics predicted rising stocks and flat wages. But reality seemed to deliver flat stocks and rising wages.
