By Andrew Soergel – The legislation heaped new debt onto a country already saddled with more than $20 trillion in outstanding obligations. But the overhaul was touted as an economic growth engine likely to drive investment and wage growth in America, eventually allowing the cuts to pay for themselves by virtue of a stronger economy.
The benefits of the income tax cut are really only now really beginning to hit and have yet to really show up in any significant way in spending figures or retail sales. It’s been estimated that, probably, the annual impact of all of that is somewhere north of $100 billion. And all of that money needs to go somewhere, so some of that will move into the spending category.
But we’re advocating on behalf of consumers and investors that they need to be thinking about how to maximize their finances so that they’re taking advantage of saving opportunities and to pay down debt.
Right now, we do see the benefits of the tax cut coming into individuals’ and corporations’ coffers. But as one who came from the Midwest, I’d seize upon a corny line and say “You need to make hay while the sun shines.” We’re in the ninth year of the economic expansion, and the bull market is nine years old as well. And these things will not last forever.
And we’re in a rising interest rate environment, where the cost of borrowing is rising and likely to rise. more>