December 22, 2017. After the U.S. House of Representatives passed H.R. 1 – The Tax Cuts and Jobs Act, the legislation was signed into law by the President. This was the first rewrite of our nation’s tax code in over 31 years.
The goal? To change the trajectory of the economy. To grow jobs, raise paychecks, and make America the most competitive economy in the world.
Here is what Republicans did in our new tax code:
- Income taxes for workers were cut across the board.
- Main Street businesses received a historic deduction to help them grow.
- Job creators went from a tax code that encouraged jobs and research to be shipped overseas to one that made America the most attractive place for business.
- Workers enjoyed a simpler tax filing process.
- Families received a higher Child Tax Credit and streamlined savings to help with education.
Simply put: This was a tax code built for growth. We experienced that growth.
For our economy:
- Main Street Optimism Reached An All-Time High. In the third quarter of 2018, small businesses recorded their highest level of optimism to date.
- Opportunities For All Americans Flourished. The unemployment rate reached a generational low, with record low unemployment for women, people of color, and workers without high school degrees.
- Jobs Added to the Economy. Since the enactment of TCJA, the economy gained nearly 5 million jobs before the pandemic.
- Businesses Started to Reinvest Again. Core investments in equipment and other business necessities reversed its Obama-era five-year downward trend and shot back up to near historic highs making businesses and workers more productive, while boosting workers’ wages.
- Business Applications At Record Levels. TCJA encouraged business creation as the amount of business applications reached its highest level ever of over 880,000.
- Millions of Hours Saved. Nearly nine out of 10 Americans took the standard deduction in 2019, no longer needing to go through the complicated process of itemizing.
- Revenues Soared. Breaking dire predictions from experts, federal revenues reached an all-time high, due to more Americans working, bigger paychecks, and businesses expanding.
- Workers’ networth soared. Low- and middle-class families saw the largest gains in wealth growth in 2018 and 2019, according to the Federal Reserve. Low-income families saw their net worth increase 37 percent. Middle-class families saw their net worth increase 40 percent.
- Household Income Reached New Highs. Real median U.S. household income in 2019 rose nearly 50 percent more than during the eight years of Barack Obama’s Presidency. Median household incomes increased 7.1 percent for Hispanics, 7.9 percent for Blacks, 10.6 percent for Asian Americans and 8.5 percent for foreign-born workers.
- Wages for Minorities Grew at a Faster Pace. Compared to Obama’s second term, wages* grew 24 percent faster for Hispanics, 79 percent faster for Blacks, and 95 percent faster for Asian Americans.
- Wages for Women Grew at a Faster Pace. Compared to Obama’s second term, wages* grew 60 percent faster for women.
- Wages for Youths (Ages 16-24) Grew at a Faster Pace. Compared to Obama’s second term, wages* grew 70 percent faster for young workers.
- Wages for All Levels of Educational Attainment Grew at a Faster Pace. Compared to Obama’s second term, wages* more than doubled for those with less than a high school diploma and those with either some college or have an associate degree.
*Wage growth as a measure of median usual weekly earnings.
Republicans have used this pro-growth foundation to rebuild our economy from the COVID-19 pandemic. To date, the unemployment rate and economic growth reports are both beating economists’ predictions from the start of the pandemic and projections continue to be revised upward.
As we celebrate three years of our new tax code, Republicans will continue to fight for workers and families from Democrats’ socialist agenda, ensuring that Americans always have first say over their money and that the United States remains open for business.