The Most Hated Tax Cut Ever?

This is pretty astonishing…

It’s become a popular trope of political punditry to make jokes about how the electorate gets bombarded by enough advertising to repeatedly vote against its own best interest. A massive tax cut for corporations, which were already flush with the most amount of cash ever, is apparently not going over particularly well with the supposedly “ignorant” electorate.


The new NBC News/Wall Street Journal poll shows that the tax-cut law, never broadly popular, has sagged in public esteem lately. Just 27 percent of Americans call it a good idea, down from 30 percent in January. A 36 percent plurality call it a bad idea, while the rest have no opinion.

Moreover, a majority gives thumbs-down on the plan when asked to consider its potential effects. Just 39 percent foresee a positive impact from a stronger economy, more jobs and more money in their pockets; 53 percent foresee a negative impact from higher deficits and disproportionate benefits for the wealthy and big corporations.

The results we’ve seen so far this earnings season from the major banks make it crystal clear that the tax cut is achieving at least one aim: the further enrichment of the investor class and the shareholders of large corporations. What JP Morgan had to say last week, along with Citi and B of A, seals the deal. Tax cuts have worked out very well for them. Goldman too, the company reported a blowout quarter this morning and saw its effective tax rate drop to 17% while profits soared 26% year over year.

Hopefully, for the GOP, these benefits find their way down below the 10% of Americans who own 80% of the stock market before the fall midterms.

It’s one thing to sell ordinary Americans on how great a thing is going to be before it actually happens. It’s quite another to tell them how great a thing was after it happens and the effects haven’t been felt. This is a nice experiment we get to watch in real-time, with the only risk being a massive, generational hole potentially being blown in the deficit, but so what. It’s for science!



This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Graphite 58G505 manuals commented on Jan 19

    … [Trackback]

    […] Information on that Topic: […]