The 2018 tax season has come to a close this week and the Tax Cuts and Jobs Act has given Americans plenty to be grateful for. According to a CNN analysis of President Trump’s tax laws most US taxpayers were winners this tax season. A majority of Americans should have their tax burden decreased by $100 this year. The TCJA has helped families and individuals keep more of their hard-earned money; something all Americans can celebrate.
Even more noteworthy than the early results of tax reform’s impact on the 2018 tax season is the economic boom contributed by tax cuts. The TCJA has helped increase workers’ wages and benefits, increase domestic and foreign investment, will help promote longer-term investment. Big companies have been able to invest more in employee benefits like employee education, increased wages, and pension funding. Despite unsubstantiated and unwarranted criticism, tax reform continues to prove its worth to the American people.
It’s time for the tax reform naysayers to accept the reality of the TCJA’s success. President Trump’s tax reform has been good for workers and businesses alike. Our economy is soaring thanks to the impact of the TCJA.
For the First time since the Great Recession in 2008 lower-end earners are getting greater benefits than higher-end earners. According to the Bureau of Labor statistics earnings rose by 3.4%, which marked the seventh consecutive month that saw earnings increase by 3% or more. This solid growth across income levels is an excellent indicator that our Economy is thriving. CNBC’s Jeff Cox even said that this wage trend could prove that our economy will be able to maintain the growth seen in 2018.
Our economy is not only prospering domestically, but globally as well. The Tax Cuts and Jobs Act has helped the American economy a force to be reckoned with. Thanks to the reduction of the corporate tax rate the American economy has become the most competitive economy in the world. GDP growth went up 3.1% in 2018, wages grew by 3.4%, and unemployment is at its lowest point in the past 50 years.
Many members of Congress are optimistic about the sustainability of this economic surge, despite the Democrats harping on the shortcomings of the TCJA during this week’s House Ways and Means Committee hearing. Representative Kevin Brady is insistent that this economic growth is not the precursor to a slowdown, disregarding the recent assertion that it is nothing more than a “sugar high”.
Tax reform has offered an incredible boost to our economy. Thanks to the TCJA business is booming, and there is no end in sight.
According to a piece from the Hill federal taxes only made up 7.9% of GDP in 2018 instead of the 8.3% in 2016 and 2017. Federal corporate taxes fell by nearly 50% from 2017. This means that tax savings were put towards savings and investments instead of being spent. Thanks to the Tax Cuts & Jobs Act, America is experiencing the highest level of investment since 2001.
In a letter from the York Dispatch, one constituent reached out to his representative, Lloyd Smucker, and thanked him for his work endorsing the TCJA. After helping one of his family friends with their taxes, he calculated that they had saved a whopping $3,300 in 2018 thanks to the TCJA. This is a real-life case that celebrates the triumph of tax reform and the relief this tax cut gave to the working middle class.
Thanks to the great work from congressmen and representatives, like Lloyd Smucker, hardworking Americans are keeping more of what they earn and putting it to good use.
America has just received its midterm economic report card, and our founding fathers would be proud. According to the Commerce Departmet American GDP increased 3.1% from the 2017 fourth quarter to the 2018 fourth quarter. This is the largest increase in 13 years. Fox News has also reported that a decade after the bull market in 2008 the Dow and S&P have risen over 300% from their record lows.
Mark Weinberger, CEO of EY, is confident that the best is still yet to come. Though fixing our economy will take time, the Tax Cuts and Jobs Act (TCJA) is a step in the right direction towards increasing wages and commercial productivity.
All of this economic progress would not have been possible without the relief from the TCJA. Business is booming again thanks to the substantial corporate tax rate reduction and increase investment. Let’s keep it that way!
According to CNBC, job openings are at a record high. The Labor Department claims that the reported 7.3 million open jobs in December was the highest in the past two decades. If that news wasn’t big enough, the Commerce Department also reports that America’s fourth-quarter GDP increased 2.6%, outperforming original estimates.
The Tax Cuts and Jobs Act (TCJA) has undoubtedly played a major role in improving the economy since the bill was passed in December of 2017. Companies of all sizes are able to hire more employees, provide higher wages and bonuses, and fund improvements to their businesses thanks to the TCJA.
American business owners would like to thank Congress for their efforts in promoting the economic growth. We hope Congress continues to work on behalf of businesses, small and large, to ensure more growth, and protect us from burdensome regulations that would damage this economic prosperity.
This news also comes at a time when some members of Congress are already seeking to raise taxes in order to fund other projects. This would be a harmful misstep that would have massive implications for the business community across the country. We are starting to reap the benefits of tax reform and to undo it would harm every business in the country.