President Donald Trump hailed his signature tax overhaul as a "middle-class miracle." While studies show many Americans did pay less to the government because of that law, big banks appear to have emerged as some of the biggest winners. The nation's six top banks saved $18 billion in 2019 as a result of the Tax Cuts and Jobs Act, according to an analysis by Bloomberg News. Visit Business Insider's homepage here.
President Donald Trump hailed his signature tax overhaul as a "middle-class miracle." And while studies show many Americans did pay less to the government because of that law, top banks appear to have emerged as some of the biggest winners. The nation's six top banks saved $18 billion in 2019 as a result of the Tax Cuts and Jobs Act, according to an analysis by Bloomberg News. The banks — Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo — have saved $32 billion since the legislation took effect in 2018. The average effective tax rate for the top banks fell to 18% last year, compared with 20% a year earlier and 30% before the $1.5 trillion package was put in place. Bloomberg calculated what was paid under the new tax law and compared that with averages between 2013 and 2017. At a signing ceremony for a partial trade deal with China on Wednesday, Trump called on several bank executives directly as he touted his economic policies including tax cuts. He asked Mary Erdoes, the head of JPMorgan Chase's asset management unit, to thank him for "incredible"' earnings in the fourth quarter. "They were very substantial," Trump said at the ceremony in the East Room of the White House, referring to the earnings. "Will you say, 'Thank you, Mr. President,' at least? Huh? I made a lot of bankers look very good." Combined profits at the six banks have jumped in recent years, coming in at more than $120 billion in 2018. Advocates of TCJA said large tax breaks enjoyed by corporations would trickle down to the middle class through pickups in hiring, investment and wages. But the package delivered benefits even more generous than expected to the ultra wealthy. The Trump administration has since shifted its approach, emphasizing a focus on the middle class in a proposed second round of tax cuts. While any such legislation would be unlikely to get through Congress before the November election, it gives Trump a fresh message for his base. SEE ALSO: NAFTA rewrite gets final OK in Congress, giving Trump back-to-back trade deals to tout Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
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President Trump and a top Chinese official signed a long-awaited phase-one trade deal yesterday. Here’s who...President Trump and a top Chinese official signed a long-awaited phase-one trade deal yesterday. Here’s who benefited, and who was left out in the cold.
'Tax cuts 2.0' will be rolled out during Trump's 2020 campaign, his top economic advisor says | Markets Insider
National Economic Council Director Larry Kudlow says the White House will release another tax cut plan...National Economic Council Director Larry Kudlow says the White House will release another tax cut plan in the middle of the 2020 election this year, likely in the summer. President Trump's top legislative achievement remains the 2017 Tax Cuts and Jobs Act, which slashed tax rates for corporations permanently while providing temporary relief for individuals. Since late last year, the Trump administration has weighed another round of tax cuts to help bolster the president's re-election odds and campaign that a second term would provide a boost to the middle class. Visit Business Insider's homepage for more stories. The Trump administration will roll out another round of tax cuts during the 2020 campaign, the president's top economic advisor Larry Kudlow said in a CNBC interview on Wednesday. Kudlow, the National Economic Council Director, said he's been spearheading the planning so far. "I am still running a process of Tax Cuts 2.0," Kudlow said. "We're many months away – it'll come out something later during the campaign." He added: "Tax Cuts 2.0 to help middle-class economic growth. That's still our goal." Kudlow also said the cuts would be unveiled "perhaps sometime later this summer." It would mark an addition to the 2017 Tax Cuts and Jobs Act, which remains Trump's signature legislative achievement. It slashed the corporate tax rate to 21% and enacted temporary individual tax cuts that are set to expire in 2025. Corporate taxes were permanently cut. Though the president pitched it as "rocket fuel" for the American economy, it fell short of many of the ambitious goals that Republicans put forward — such as locking in annual 3% GDP growth and spiking wages for workers. The law also substantially added to the federal deficit instead of paying for itself. Democrats argued it represented a windfall for the wealthiest Americans and corporations. Since late 2019, the White House has mulled unveiling another set of tax cuts to help bolster Trump's re-election odds and and argue that a second term would result in a boost to the middle class. Republican Rep. Kevin Brady, who steered the last set of tax cuts through Congress, told Reuters last year that another tax plan could be designed to lock in the rate reduction for individuals. Read more: A Silicon Valley tech leader turned real-estate mogul shares 5 'amazing and seminal' books that are 'fundamental to changing your perspectives on finances and wealth'Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
Efforts to eliminate the cap on a popular tax break have divided Democrats, and will die...Efforts to eliminate the cap on a popular tax break have divided Democrats, and will die in the Senate.