It has been over a month now since Americans across the country filed their taxes, and Democrats are starting to come out of the woodwork to criticize the “shortcomings” of the Tax Cuts and Jobs Act. Their favorite talking point is claiming that the middle class was “left behind” this tax season. However, all of the data demonstrates otherwise. Let us look at the facts to get a real sense of the positive impact of the TCJA.
Thanks to the TCJA, average hourly earnings have grown 3.2% over the past year, with GDP rising 3.2% as well in the first quarter of 2019. Unemployment has consistently been at or below 4% over the past year, reaching lows for women, veterans, Hispanics not seen in decades. This economic success and spike in jobs growth would not have been possible without the tax reductions provided by the TCJA.
According to Senator Chuck Grassley, approximately 90% of middle-class households paid nearly $900 less than they would have without the passage of tax reform, and with the adjustment in tax withholdings, people were able to keep more of their hard-earned money each paycheck. These statistics demonstrate just how helpful the TCJA was for average Americans, and offer clearer picture of how much people of all walks of life benefited from tax reform.
The Democrats’ misrepresentation of the facts make for a good campaigning, but there talk is cheap and the claims are unsubstantiated. These numbers are proof that tax reform did not leave the middle-class behind. If anything, it finally rewarded them.