Tax Facts: Making Individual Tax Cuts Permanent Will Lead to More Jobs, Greater Growth, Bigger Paychecks

July 11, 2018 — Blog   

Here’s the news: The jobs market is hot right now and our economy is firing on all cylinders. As the New York Times put it:

“Some estimates for growth in the second quarter are bouncing above 4 percent. The manufacturing sector buzzed with activity last month, and spending on construction rose. New jobless claims are at historically low levels. And many consumers displayed their confidence in the economy by kicking off the summer with a new car purchase.”

Here’s the rhetoric: House Democratic Leader Nancy Pelosi (D-CA) stated in response to June’s solid jobs numbers that our economy is “being hollowed out.” Democrats continue to dismiss all the great benefits our workers are seeing thanks to a new tax code and pro-growth Republican policies.

Here’s the reality: Republicans are building on the success of our new tax code to make our country even more competitive for years to come. That is what Tax Reform 2.0 is all about.

As Chairman Brady said on FOX News’ “The Journal Editorial Report” with Paul Gigot over the weekend in regards to Tax Reform 2.0:

“The focus here is going to be on making sure those middle-class tax cuts and those small business tax cuts are made permanent.”

The nonpartisan Tax Foundation released a new study today analyzing the economic impacts on our workers and families of making permanent the individual tax cuts Republicans passed into law. Their study found:

  • More Jobs: Their analysis estimates that an additional 1.5 million full-time jobs would be added over the long term.
  • Greater Economic Growth: On top of the growth already expected due to the Republican tax cuts, making the individual tax cuts permanent would generate an additional 2.2 percent increase in long-run GDP.
  • Bigger Paychecks: The Tax Foundation estimates making these cuts permanent would boost long-run wages by 0.9 percent.

The Bottom Line: Tax reform is already boosting our economy. Tax Reform 2.0 will add to that momentum.