Trump’s tax revolution funded a middle-class renaissance

By Joseph Ford Cotto, AMERICAN THINKER    15 May 2024

In the annals of American economic history, few measures have left as indelible a mark as the monumental tax relief efforts spearheaded under the leadership of President Donald Trump.

Undoubtedly, his tenure heralded a paradigm shift, championing the cause of the middle class with an unparalleled fervor.

Through the implementation of the Tax Cuts and Jobs Act, a landmark legislation of historic proportions, Trump etched his legacy as a stalwart defender of the financial interests of hardworking, upwardly mobile Americans.

The magnitude of this reform cannot be overstated. With a resolute stroke of his pen, Trump ushered in an era of unprecedented tax relief, amounting to a staggering $3.2 trillion. The official data are here.

Central to this overhaul was the reformation of the tax code, a long-overdue endeavor that sought to rectify years of bureaucratic entanglement and inequity.

Foremost among the triumphs of the Tax Cuts and Jobs Act was the substantial relief afforded to American workers. Over 6 million individuals experienced tangible improvements in their financial circumstances, with wage increases, bonuses, and enhanced benefits becoming emblematic of the newfound prosperity engendered by Trump’s policies.

Families across the nation found solace in a tax cut averaging $2,000, effectively halving their tax burden and alleviating the strain on household budgets.

Crucially, Trump’s reforms were not confined to fleeting gestures of goodwill. By doubling the standard deduction, he ensured that the first $24,000 earned by a married couple remained beyond the reach of taxation, empowering families to retain more of their hard-earned income.

In a decisive blow to the scourge of intergenerational taxation, Trump virtually eliminated the Estate Tax, liberating individuals from the specter of punitive levies on inherited wealth. This bold move served as a testament to his unwavering dedication to fostering an environment conducive to economic mobility and prosperity.

Equally transformative was Trump’s overhaul of the corporate tax landscape. By slashing the business tax rate from 35 percent to a competitive 21 percent, he catalyzed a resurgence in American enterprise, laying the groundwork for sustained economic growth.

Small businesses, the lifeblood of the American economy, were afforded a lifeline through the deduction of 20 percent of their business income, fortifying their resilience in the face of adversity.

Furthermore, Trump’s measures incentivized capital investment, emboldening businesses to pursue bold ventures and innovate with renewed vigor. The ability to deduct 100 percent of capital investments in the year of their inception imbued entrepreneurs with newfound confidence, spurring a wave of investment and job creation.

In the wake of these reforms, the economic landscape underwent a tectonic shift, with tangible benefits accruing to the middle class. Notably, the share of total wealth held by the bottom half of households experienced a notable uptick, signaling a welcome departure from entrenched disparities. Conversely, the share held by the top one percent receded, indicative of a more equitable distribution of prosperity.

The dividends of Trump’s tax policies extended beyond domestic borders, facilitating the repatriation of over $1.5 trillion from overseas. This influx of capital injected vitality into the American economy, bolstering investment and spurring innovation.

Lower investment costs and higher capital returns engendered a virtuous cycle of growth, propelling real wages and enhancing international competitiveness.

Central to Trump’s vision of inclusive prosperity was the creation of Opportunity Zones, emblematic of his commitment to revitalizing economically distressed communities. Nearly 9,000 Opportunity Zones were established, offering a sanctuary for long-term investments shielded from taxation.

The ramifications were profound, with property values within these zones experiencing a marked appreciation, fostering an environment conducive to wealth creation.

The impact of Opportunity Zones reverberated far beyond mere statistical metrics, catalyzing a renaissance in communities long neglected by the tides of progress. With $75 billion in funds and $52 billion of new investment pouring into these areas, the transformative potential of Trump’s vision was laid bare.

At least 500,000 new jobs burgeoned forth, offering a lifeline to those ensnared by the shackles of poverty.

Indeed, the ripple effects of Trump’s policies were felt acutely by those on the margins of society.

Approximately one million Americans were lifted from the depths of poverty, afforded a newfound sense of dignity and hope by the wave of investment sweeping across Opportunity Zones.

The efficacy of these initiatives was manifest in the discernible uptick in private equity investments, which surged by nearly 30 percent in designated Opportunity Zones compared to their counterparts.

In summation, the legacy of Donald Trump’s presidency is irrevocably intertwined with his steadfast commitment to the prosperity of the middle class. Through historic tax relief measures and visionary economic policies, he transformed the economic landscape, empowering millions of Americans to chart a course toward a brighter future.

As the specter of electoral decision looms large, the choice before the American people is clear: embrace the proven leadership of Donald Trump, who stands as a bulwark against the encroachment of economic stagnation, or acquiesce to the hollow promises of his adversaries.

In November, let us unite behind a champion who has proven time and again that he is a staunch defender of the financial interests of middle-class Americans — the indomitable Donald J. Trump.

Joseph Ford Cotto, 1st Baron Cotto, GCCCR (DBA) is the author of What Happened to America?: How—and Why—the American Dream Became a Nightmare. He hosts News Sight, an online program with a sharp focus on the current events that impact your life. During 2014, HLM King Kigeli V of Rwanda bestowed a hereditary knighthood upon him. It was followed by a barony the next year. Cotto holds a doctorate in business administration.