WASHINGTON, D.C. — The RATE Coalition today released the following statement regarding mentions of pro-growth tax policy in President Donald Trump’s State of the Union Address:
“Only two years after the corporate tax rate was lowered to a globally competitive level, businesses are hiring more people, creating new opportunities here in our communities, and increasing paychecks for workers in all of America’s metro areas for the first time in more than 25 years. With a corporate tax rate finally in line with the OECD average, American businesses are no longer at a huge tax rate disadvantage compared to other nations. We applaud the administration for renewing its commitment to pro-growth policies and keeping U.S. tax rates competitive.”
Benefits of a Globally Competitive Corporate Tax Rate:
- More than 900 American job creators in all 50 states used their tax cut savings to invest in their workers through higher paychecks, bonuses, expanded retirement and parental leave benefits, tuition assistance, new jobs, and lower utility rates.
- More than 4.5 million jobs have been created since the tax cuts were signed into law, and 6.7 million jobs have been created since January 2017.
- The current unemployment rate of 3.5 percent is at a 50-year low, and the December 2019 report marked nearly two years of an unemployment rate at or below 4 percent.
- With 6.8 million available jobs, the number of job openings currently surpasses the number of job seekers, illustrating the competitiveness of the current job market.
- In 2018, workers in the lowest wage distribution range saw their wages grow by 6.5 percent. According to the December 2019 jobs report, wages grew by 2.9 percent over the past 12 months.
- The “vast majority” of Americans, including middle-class families, received a tax cut. According to the Joint Committee on Taxation, “every income group would see a tax cut on average,” and low-wage workers received a larger tax cut than high-wage earners. The 21 million workers earning between $20,000 to $30,000 per year received a 13.5 percent tax cut while people earning more than $1 million received a 5.9 percent tax cut.
- Companies, jobs, and cash are flowing back from overseas. Since the end of 2017, businesses brought more than $1 trillion in overseas profits back to the U.S.