Why Tax Reform’s Success Will Continue to Build
In just three months since the Tax Cuts and Jobs Act was signed into law by President Trump, we’ve seen 550,000 new jobs created and over 400 companies – and counting – announce pay raises, bonuses, and investments in their workers and businesses.
It’s undeniable that tax reform is boosting the economy: Wages are growing and unemployment is low – U.S. jobless claims have fallen to their lowest level since 1973. Yesterday, McDonald’s announced new worker benefits thanks to tax reform and earlier this week, McCormick & Company, a Fortune 1000 company that manufactures spices, announced employee bonuses and wage increases thanks to tax reform. Apple has also recently announced that it plans to create 20,000 jobs and invest $350 billion in the U.S.
As the economy continues to expand and job opportunities increase, millions of households are already starting to see tax relief in their paychecks each month — and this is just the beginning. State legislators are also looking to reform outdated and cumbersome tax codes through updating their tax codes, which, too, will increase economic investment and boost the American economy.
Chairman Brady had this to say about the recent surge in positive economic indicators:
“While we’re really encouraged by the short-term impact, the truth is this tax reform was built to grow America’s economy by encouraging investment and ultimately bringing jobs here from overseas. The best is yet to come.”
This is the last year Americans will have to file under the old system tax system. When households file their taxes for 2018 early next year, more of their money will be protected from taxes and the new code will include these important benefits:
- A nearly doubled standard deduction;
- A dramatically expanded Child Tax Credit, including an increase from $1,000 to $2,000 for each child starting in 2018 and a greater number of families who qualify for the credit; and
- Reduced tax rates across the board.
In only three months, there already have been many positive effects due to tax reform all across the country. As taxpayers begin to invest the earnings they get to keep because of reduced taxes and our economy continues to grow, hardworking families will see more and more ways that tax reform will improve their lives.