No, it can get worse, much worse. Starting with the Republicans get their act together and pass regressive laws.
The Tax Cut frenzy of 2017 is exactly that.
This corporate/billionaire tax cut is going to be devastating in about 18 months. Initially, it will look like great guns as corporations repatriate trillions
in overseas profits. How Tax Bills Would Reward Companies That Moved Money Offshore
. These companies stashed money overseas to keep it from being taxed - a tax dodge. "Over the past few decades, some of the largest companies in the United States made a big bet: By stashing hundreds of billions of dollars of profits offshore, they could slash their taxes and bolster their profits."
Now the GOP has made that tax dodge pay off big time. Like the 2004 giveaway by President Bush, this giveaway is a godsend to capital-rich financiers:
The tax breaks for bringing home such offshore profits “confirm the central tenet of tax planning that a tax deferred is a tax avoided,” said David Miller, a tax lawyer at Proskauer Rose. “For decades, U.S. multinationals have shifted profits abroad and deferred their taxes on them. If either of the tax bills pass, they will be rewarded for doing so.”
The biggest bankers, like Goldman Sachs, moreover, are "writing down" their losses in taxes and maneuvering to avoid even more taxes. In Goldman Sachs' case, they're paying $5 billion now, and have avoided $15 billion with the tax dodge. That's a 300% return!
The $3 trillion in stashed cash will allow companies that have engineered the dodge to avoid similar amounts - squeezing nearly a $1 trillion out of treasury. Where will all that money go? Well.... it's estimated that 50% will go directly to buy-backs of stock
(corporations reducing outstanding stocks) and artificially inflate the books - great for investors, especially hedge funds, and it will also artificially inflate stock prices - for the next year
. Wall Street says a major fear about Trump's tax plan is overblown
(Don't believe Wall Street.) After that, well.... there will be a "market correction."
The rest of that windfall will go to - debt payments. Companies have been borrowing like crazy while interest rates are near 0%. But it's still debt. Getting debt off the books will make the bottom line look great. Unfortunately, when they have to borrow again (like, for taking over smaller competitors), it will be at higher rates
After the first quarter of 2018, tax revenues to the United States Treasury will plummet - by about 40%. Yes, 40%. How Much Will Trump's Tax Plan Cost?
That "$1.4 trillion" deficit expectation? Fantasy. Realistically, it will be twice that. The bite will begin to be felt in 2019 (conveniently after elections), and will be raging by 2022 - forget 2025 when the individual cuts expire. Expect a massive slow-down in the economy.