Q: What happened within weeks of the “Tax Cuts and Jobs Act” being signed into law?
A: The landmark overhaul to the federal tax system has injected an immediate boost to the economy and put more money in people’s pockets. Across the country, it has delivered a welcome boost in benefits and bonuses to American workers. The new law restores our nation’s bedrock principles of limited government and individual empowerment so that more Americans may achieve prosperity. When Washington takes less money out of people’s pockets, Americans have more to save, spend and invest. Lowering taxes opens the door to encourage start-ups, farms and businesses to grow and trigger even more economic activity in their hometown communities. In fact, as a result of the new tax cuts, a growing number of companies are investing resources back into their business and employees. Hundreds of U.S. businesses already have invested their savings into their workforce by providing millions of American workers with bonuses and wage increases. Many also have announced plans to hire more workers, bump up 401k contributions, invest in new technology and make equipment upgrades. Capital investments drive productivity and improve economic growth. And that’s exactly what’s happening across the country. There’s even more good news on the way because there’s even more pro-growth policies on the horizon. Infrastructure development and additional regulatory relief will continue to fuel even more productivity and foster better labor force participation in the U.S. workforce. Rising wages and lower taxes are music to the ears of American workers. When businesses thrive and prosper, so do Main Street and U.S. households.
Q: How does reducing the corporate tax rate help individual Americans?
A: When job creators pay less taxes, they have more money to invest in their businesses, hire more workers and sign bigger paychecks for their employees. A lot of critics excoriated the Tax Cuts and Job Act, claiming that the working class would get “crumbs.” Anyone who thinks that a $1,000 bonus or a $500 bump in take-home pay is equivalent to table scraps doesn’t have a doggone clue about living paycheck to paycheck. One Iowa employer lauded the value of his workforce and used savings from the new tax law to award each employee a $1,000 bonus and bump wages up by five percent. “They are the most valuable asset in any business.” From Main Street to Wall Street, tax cuts work. Specifically, the historic overhaul lowers the corporate tax burden from 35 percent to 21 percent and reforms how profits earned overseas are taxed. Previous administrations endorsed this goal to make American companies more competitive and to bring home profits parked overseas. At long last, Congress got the job done and this historic tax reform is delivering for the American people. U.S. corporations have signaled they will repatriate tens of billions of dollars this year. With the landmark tax cuts in place, American companies have announced plans to invest in workforce development, boost capital and infrastructure spending, create thousands of jobs, increase donations to charitable causes, add health care and parental leave benefits, and hand-out bonuses and wage increases to their employees. During the debate and final passage of this legislation, at least one critic referred to this historic tax cut as Armageddon. That’s the place where the last battle between good and evil will be fought, according to the New Testament. When the president signed the Tax Cuts and Jobs Act in December, the sky didn’t fall and the world didn’t end. Instead, goodness prevailed and the new law is delivering job-creating economic growth and bigger paychecks to millions of hard-working Americans across the country.