Tax Facts Tuesday: Six Months Later, GOP Tax Cuts Producing Real Gains
The Tax Cuts and Jobs Act is producing exciting results for the United States economy. On top of letting workers and families keep more of their money due to lower tax rates, a nearly doubled standard deduction, a doubled Child Tax Credit available to many more families, and other tax benefits, the GOP tax cuts are making our economy boom, which is good for all American families.
Six months after this historic legislation was signed into law by President Trump, here are the stats:
- Bigger Paychecks: Wages are growing at their fastest pace since 2008. Also, already over 4 million American workers have received bonuses.
- Lower Utility Bills: Over 87 million people have seen lower utility bills due to tax reform.
- Faster Economic Growth: Tax reform is boosting our economy faster than previous forecasts predicted. In fact, many forecasts are now expecting growth at or above 4% for the second quarter of this year.
- More Jobs: Over 1 million jobs have been created already this year. We are adding jobs more quickly than previous forecasts predicted – instead of adding 166,000 jobs per month like the Blue Chip forecasters projected, the economy has actually added 207,000 jobs per month.
- More Investment: The nonpartisan Congressional Budget Office made a major upward revision in its investment forecast after tax reform was signed into law, and actual business investment since tax reform beat even this increased forecast – registering growth of 6.8% in the first quarter of 2018.
- Record Low Unemployment: Current unemployment is at 3.8% – the lowest rate since 1969. In addition, African American unemployment is at an all-time low of 5.9%. And as the New York Times reported, “The jobless rates for Hispanics, teenagers and those with less than a high school education are likewise at or near multidecade lows.”
- Main Street is Roaring: In May, small business optimism hit its highest level in 45 years. In addition, small businesses are reporting higher wages for their workers, increased profits, and more plans for expansion.
- Booming Housing Market: Home prices are rising at their fastest pace since 2014 – debunking the doomsday predictions from some that home prices would fall due to tax reform.
This is only the start of even more good things to come. Republicans are continuing our work to build on this momentum to keep our economy moving forward, while Democrats are proposing to take all this progress away.
Given the choice between allowing the American people to keep more of their money to spend as they see fit or continuing to require families to send too much of their earnings to Washington to be spent by bureaucrats, Republicans choose the American people.