As April 15th approaches, American families and small businesses are filing their taxes across the country, and the Tax Cuts and Jobs Act is back in the news. But, despite what you might read on Facebook, the facts are clear: our economy is thriving, wages are going up and tax reform is helping American workers keep more of their hard-earned money.
These benefits are helping Americans, regardless of income level, to invest more of their money in the things they truly care about. And, instead of having to wait for the government to return their interest free loan in the form of a tax refund, folks get more money in their paycheck throughout the year. This gives families the opportunity to spend their money as they see fit and on their own schedule, not the schedule of government bureaucrats in Washington.
And that’s not all the good news Americans across the economic spectrum have received since tax reform. In fact, the wage growth we have seen after the passage of the Tax Cuts and Jobs Act is benefitting low-income Americans more than any other income bracket. According to the Bureau of Labor Statistics, hourly pay went up by 3.4% in February alone, which is the biggest increase in the last decade. On top of that, the House Committee on Ways and Means announced that 90% of workers have a lower tax bill this year than they did the year before. That’s more money in your pocket.
We have also seen businesses passing their tax reform savings along to workers. The National Federation of Independent Businesses released numbers in February showing that small businesses are creating more jobs now than they have at any point in the last 45 years, with 57% of small business owners reporting new hires or looking to hire. This is also the first time on record that the number of open jobs exceeds the number of unemployed Americans. No wonder unemployment is at lows we haven’t seen in decades for folks from all walks of life. That is the power of historic job creation on Main Street.
Small business owners from Woodbury to Griffin have told me about the new employees they have hired and investments they have been able to make as a direct result of tax reform. Some of these companies have as few as ten workers, so even the ability to add one new employee makes a huge difference to that local business and ensures one more of our neighbors attains the dignity of work.
There is a lot of disinformation out there, and it can be hard to cut through the noise of today’s political rhetoric. But if you look past the anecdotes and look at the facts and figures, it is clear that tax reform is helping Americans thrive. It certainly isn’t the end of our work, but there is no doubt that the Tax Cuts and Jobs Act and pro-growth policies are making it possible for Americans to succeed.