This well-written article by CBS News summarizes the effects of the Tax Cuts and Jobs Act on it’s one year anniversary. The results confirm that America’s tax professionals were correct in our earlier criticism. The law’s primary effect is to widen the wealth gap with 10 times the amount of benefit going to investors as workers. Among most of my clients, the complex 20% pass-through business income exemption cut helps but that benefit is wiped out by elimination of high itemized deductions.
In the end the article concludes “the most likely scenarios, most households will end up worse off than had the TCJA never passed”.
Among my tax policy geek peers the discussion now is about how we undo the damage of the law. There appear to be no easy answers; it will be painful for the next generation of taxpayers.