“To provide relief to those families, Congress must stay committed to delivering pro-growth, pro-worker tax relief and build on the success of the Tax Cuts and Jobs Act.”
WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement in recognition of the sixth anniversary of President Trump signing the Tax Cuts and Jobs Act (TCJA) into law:
“The Tax Cuts and Jobs Act has proven to be a model of tax reform that can deliver higher wages and a growing economy for workers, families, farmers, and small businesses. The benefits of TCJA were particularly targeted at working families. In the years after passage, the lowest 10 percent of income earners saw 50 percent higher growth in incomes than those in the top 10 percent. The 4.9 percent increase in wages that occurred in 2018 and 2019 was the fastest two-year growth in real wages in two decades. As the economy grew at a full percentage point higher than the previous 10-year average and above economist predictions, the poverty rate and the unemployment rate dropped to the lowest levels in 50 years.
“The Republicans’ tax law not only grew workers’ wages and the economy but led to the highest federal revenue level ever recorded. Democrats seeking to pin blame on TCJA for last year’s dip in revenues need look no further than ‘Bidenomics’, the masthead of their failed economic policies that have led to America’s inflation crisis and the resulting interest rate increases that are walloping working families this holiday season. To provide relief to those families, Congress must stay committed to delivering pro-growth, pro-worker tax relief and build on the success of the Tax Cuts and Jobs Act.”
Key Facts About the Impact of the Tax Cuts and Jobs Act:
- Wages increased 4.9 percent – the fastest two-year growth in real wages in 20years.
- Workers in the lowest 10 percent of income saw 50 percent higher wagegrowth as compared to those in the highest 10 percent.
- Real median household income rose by $5,000 – a bigger increase in just twoyears than in the prior eight years combined.
- Americans earning under $100,000 received an average tax cut of 16 percent.
- TCJA increased the share of taxes paid by the top 1 percent of householdswhile lowering the burden paid by lower income workers.
- In the first two years after TCJA, GDP growth was a full percentage pointhigher than CBO’s pre-TCJA forecast and the previous 10-year average.
- In FY 2022, tax revenues reached a record-high of $4.9 trillion – $1.6 trillionhigher than when TCJA was passed and $884 billion above the Congressional Budget Office’s post-TCJA projections for that fiscal year.