Tax reform is making a difference in Iowa, across U.S.

By Sen. Chuck Grassley of Iowa

Government should work for the people it serves, not the other way around. Since its passage, the Tax Cuts and Jobs Act has proven it’s working for the people of Iowa and the entire country. It contributed to the creation of more than 200,000 jobs last month alone. The national unemployment rate is at record lows and increased wages continue to benefit American families.

During my 99 Iowa county meetings, I meet a lot of hard-working Iowans. Many of them make a point of telling me their businesses and families have benefitted from the commonsense tax reforms passed in December. Higher wages are helping Iowans build their savings and retirement accounts, buy homes and invest in their futures. A better job market has made it possible for Iowans to take advantage of new opportunities and advance their careers. Lower utility costs have helped Iowans get a leg up on their monthly bills. Tax reform is making a real difference for Iowans and people throughout the country.

National wages have increased by 2.9 percent since June 2017. The average household income in Iowa in 2016 was approximately $56,000. Add an additional 2.9 percent to that figure and Iowans would receive over 1,600 extra dollars annually. It’s allowing Americans to thrive under new opportunity and economic prosperity.

According to the National Federation of Independent Business (NFIB), small business optimism is at an all-time high, setting a new record last month in the Small Business Optimism Index survey’s 45-year history. The Census Bureau reports that median household income improved over the past year and poverty has subsided to pre-recession lows. The unemployment rate for young Americans aged 16 to 24 is as low as it’s been since July 1966. The unemployment rate for workers with less than a high school diploma was at its lowest level in recorded history in July, and the number of Americans seeking Social Security disability benefits has plummeted.

To the millions of Americans thriving under the Tax Cuts and Jobs Act, these results aren’t crumbs, as some politicians said. Instead, they’re changing lives for the better. Those positive changes are evident throughout Iowa.

Iowa’s current unemployment rate is 2.6 percent, the second lowest unemployment rate in the nation. Small Iowa businesses like Keg Creek Brewing in Glenwood are expanding their operations and investing in new equipment. Local businesses such as Anfinson Farm Store in Cushing, Dyersville Die Cast in Dyersville, Ohnward Bancshares in Maquoketa, Bank Midwest in Spirit Lake and Pattison Sand Company in Clayton have been able to give bonuses and pay raises to their employees. Iowa utility companies like Iowa American Water Co., MidAmerican Energy, Des Moines Utility, Interstate Power and Light, Alliant Energy and Black Hills Energy are lowering electric, gas and water bills for Iowans thanks to the recent tax reforms. In fact, these companies are delivering an estimated $147 million reduction on heating and cooling. Put another way, the overall total savings would buy over 21,000 acres of farmland in Iowa.

Americans have struggled for years under an economic recession to pay their bills, provide for their families and put a little money aside for a rainy day. Now, for the first time in a long time, people in Iowa and throughout the country are optimistic about the future thanks to the commonsense reforms passed in the Tax Cuts and Jobs Act. But, this economic turnaround is just getting going. In order for Iowa families to really enjoy the benefits of a renewed path to long-term prosperity, we can’t stop now.

I’ll continue working with my congressional colleagues to ensure the recent economic success enjoyed by millions continues.

Republican Charles Grassley represents Iowa in the United States Senate.

-30-