May 16, 2018

Tax Reform is Working: Growing Our Economy & Creating Jobs

Post by Freedom Partners

This morning, lawmakers on the House Ways and Means Committee are scheduled to review their early impressions of the new Tax Cuts and Jobs Act. As they begin their hearing, it’s worth reflecting on the impact this law has had on our nation’s economy, businesses, and hardworking taxpayers thus far.

Economic Growth

Since passage in December 2017, tax reform has helped to grow our economy by allowing millions of Americans and their families across the country to keep more of their hard-earned money. While the full benefits to the economy will be felt over the long term, things are already looking up. The U.S. Department of Commerce’s estimate of GDP for the first quarter of 2018 reveals that the economy has expanded at the fastest nine-month stretch in over a decade and that real disposable income has increased at the fastest rate since mid-2015.

Businesses Announcing Benefits for Workers

In addition, many workers have received good news as several hundred companies and businesses have announced employee bonuses, increased wages, enhanced employee retirement plans, expanded health insurance benefits as well as new hiring, workforce training and development initiatives.

One major example is the Apple announcement that, partly credited to tax reform, it will create 20,000 new jobs, open a new campus, and contribute $350 billion to the American economy over the next five years. Mastercard, Heinz, FedEx, UPS, and Best Buy, among many more, have all announced similar benefits that directly impact middle-income Americans.

Smaller and more local businesses are also passing along benefits to their workers, which highlights the widespread and positive impacts of tax reform. These benefits are geared toward non-executive employees, meaning that the average American worker is seeing more money in their paychecks. As New Jersey Business reported, Central Jersey car dealership, Flemington Car and Truck Country Family of Brands, gave each full-time employee a $500 bonus at its eight different locations; In Michigan, Traverse City Business News noted that the city’s local bank, Traverse City State Bank, gave each of its 90 employees a $750 cash bonus; In Maine, where Pottle Transportation is planning on purchasing 25 tractors and 25 trailers this year to increase business capacity, per Transport Topics.

With new investments, higher wages, and a positive outlook for the economy, it’s clear that tax reform is already working for Americans.