It has something for everyone to like. For Trump and Republicans, it’s a tax cut. For Democrats, it’s a benefit that accrues mostly to middle- and lower-income taxpayers. For the Fed, it’s breathing room, giving it time to figure out how to attack the problem of persistently low inflation. And for the American people, it might be their last, best hope at ensuring the recovery doesn’t come to a stop just as the most marginalized workers are beginning to benefit.
Karl W. Smith is a former assistant professor of economics at the University of North Carolina's school of government and founder of the blog Modeled Behavior.