In another win for Tax Policy and the TCJA, The Bureau of Labor Statistics reported that 128,000 jobs were added to the US economy in October. These incredible figures surpassed all expectations and silenced those who have speculated that the US is headed for a down turn.
With more money in their pockets companies are able to raise wages. This was seen in October as the average hourly earnings increased 0.2%, up 3% from a year earlier.
Moreover, unemployment rose ever so slightly but ONLY because 325,000 Americans started looking for work, knowing that it was out there and wanting to be part of a thriving economy!
And if that wasn’t enough, the report corrected data from the summer and showed that an extra 95,000 jobs were added in August and September combined.
All of this good news is a result of the sustained results of a strong economy that is supported by even stronger tax policy! The TCJA helped create the space for more jobs, higher wages and better living. We are seeing the results every day and we will continue to see them.
The TCJA has lifted burdens for all people and created jobs all over the nation. This has been most apparent in states that aligned with the TCJA policies and have lower taxes overall.
According to employment numbers released by the US Bureau of Labor Statistics, the 27 states with the lightest tax burden on individuals, continued to add jobs at double the rate of the 23 states with higher taxes since December 2017 when the TCJA went into effect.
From December 2017 through September 2019, the 27 low-tax states grew their private sector payrolls by 3.90%. In the 23 high-tax states growth was only 1.86%. Moreover, those low-tax states had a 109% advantage in the rate of private sector job growth over high-tax states.
So while it is clear that the TCJA continues to help people lead better lives all over the nation, it is important to recognize where it has had the greatest impact and work to bring everyone to these amazing levels of growth and employment!
The latest Census Bureau Current Population Survey data now show that middle-class incomes, after adjusting for inflation, have surged by $5,003 since 2017. Median household income has now reached $65,976 – an all-time high and up more than 8% in 2019 dollars.
These numbers contrast sharply with the 16 years prior to 2017 in a period of not real tax reform. From 2001 to 2017 incomes rose by about $1,500 while in less than three years middle incomes have risen three times faster!
The Heritage Foundation estimates that the average household has saved $1,400 a year on their federal taxes from the 2017 Trump tax cut. This means many working-class families now have a $6,000 higher after-tax, and after-inflation paycheck today.
The TCJA is in place for exactly this reason – to help the middle class and give people a better quality of life all around. These rises in income have been one of the biggest middle-class success stories in modern times, and it is a testament to the success of the 2017 TCJA and its lasting effects!
Tax Cuts and Jobs Act of 2017 is doing more than just putting money back in the pockets of Americans, it is helping educate our children too!
U.S. Secretary of Education Betsy DeVos announced last week that Department of Education is set to support the expansion of public charter schools in areas that have fallen on times of economic hardship.
The new push to expand charter schools in these communities, is designated as “opportunity zones” under the Tax Cuts and Jobs Act of 2017. The act allotted federal funds to incentivize investment by offering tax benefits to those willing to pour resources into low-income, high-poverty areas. And now these incentives are paying off in the form of more and better options for education.
According to a 2018 report by the National Charter School Resource Center, charter schools in 44 states have the potential to be financed via opportunity zone tax breaks. The report estimates that between 1,078 and 2,079 schools could use the program to fund new buildings or renovations.
In the announcement, DeVos stated she expects the expansion of charter schools to have a “long-lasting impact” on the communities, and we agree! The TCJA continues to ripple through all communities and positively impact the things Americans care about most: higher wages, more jobs, and now education.
According to recently released government data, the number of people currently enrolled in the Supplemental Nutrition Assistance Program, known as SNAP, has declined dramatically in the last 3 years.
Currently, 36,029,506 Americans, or 18,230,968 households receive SNAP. This is compared to 2016 when 42,972,692 Americans, or 21,232,456 households received assistance from the government run social program. That’s a drop of roughly 7 million people and 4 million households.
A key impact of this? The Tax Cuts and Jobs Act. As the 2017 reforms reduced taxes, businesses were able to hire more workers, increase salaries and give people across the nation a better economic outlook.
And these TCJA rewards are paying off: according to the most recent employment snapshot from the U.S. Bureau of Labor Statistics, unemployment hit a 50-year record low at 3.5% and employers added 136,000 jobs in September.
With more people in work and higher wages all round, Americans are able to take themselves off SNAP, have higher incomes and strive further for their families, loved ones and futures.