The American economy is enjoying a period of economic prosperity, and a strong majority of Americans are confident in our economy again.
Passing once-in-a-generation tax reform is a key driving force behind this recent growth. The Tax Cuts and Jobs Act lowered taxes for American families and also put into place a globally competitive corporate tax rate of 21 percent that is helping create jobs, grow wages, and increase business investment across the country.
- More than 800 American job creators used their tax cut savings to invest in their workers through higher paychecks, bonuses, expanded retirement and parental benefits, tuition assistance, new jobs, and lower utility rates.
- More than 3 million jobs have been created since the tax cuts were signed into law, and 5.4 million jobs have been created since January 2017.
- The current unemployment rate of 3.6 percent is at a nearly 50-year low, and April marked a 14-month streak where the unemployment rate was at or below 4 percent.
- The number of job openings surpasses the number of job seekers by more than 1 million, illustrating the increasingly competitive job market.
- 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.
- Wage growth has been at or above 3 percent for nine straight months. In 2018, workers in the lowest wage distribution range saw their wages grow by 6.5 percent.
- Companies, jobs, and cash are flowing back from overseas. In 2018, businesses brought more than $500 billion in overseas profits back to the U.S.
Even with a roaring economy, some lawmakers are proposing to roll back tax reform, which would hike taxes for American families and job creators. Nonpartisan organizations are cautioning against a tax hike:
- The Congressional Budget Office warned, “Raising the corporate income tax rate…could slow down economic growth and wage increases.”
- According to the Tax Foundation, a corporate rate hike to 25 percent “would reduce GDP by more than $220 billion and result in 175,700 fewer jobs.”
Pro-growth tax reform continues to create opportunities for American families, workers, and job creators. This nation cannot afford a return to a slow-growth, high-tax era.