Wednesday was a huge day for the GOP. There’s no way around it. Guys like Paul Ryan and Orrin Hatch have been trying to get tax reform done for years and years and years. Finally, they were able to get a bill to Trump’s desk that lowers taxes for 80% of households and provides significant relief to America’s middle class.
Besides letting Americans keep more of their money, this bill is going to be rocket fuel for the economy. In fact, it’s already started.
From The Daily Caller:
Aerospace company and defense contractor Boeing announced Wednesday that it would invest $300 million in charitable projects, employee training and education, and facilities improvements for Boeing locations.
Telecom giant AT&T also found a unique way to celebrate the passage of the Tax Cuts and Jobs Act, which heads to the White House for President Donald Trump’s signature. AT&T announced Wednesday that it will give more than 200,000 employees an extra $1,000 bonus, and invest $1 billion in U.S. projects in 2018. The employee bonuses will be sent out over the holidays if Trump signs the bill into law before Christmas.
Two major companies making moves that are a direct response to this bill.
A third company got into the action as well.
From Cincinnati Enquirer:
Crediting the Republican tax plan, Fifth Third Bank said Wednesday it would boost the minimum pay for its employees to $15 per hour.
This tax plan is all about growth.
From Business Insider:
An analysis from President Donald Trump’s Council of Economic Advisers published Friday estimated that one key element of the Republican proposal to overhaul the tax code would create a near-historic shot in the arm for the US economy.
According to the analysis from CEA chair Kevin Hassett and staff, slicing the corporate rate to 20% from the current federal rate of 35% would boost US GDP by 3% to 5% a year over the long-term.
“On the basis of these studies, we have calculated that a reduction in the statutory Federal corporate income tax rate from 35 percent to 20 percent simultaneously with the introduction of immediate full expensing of capital investment would generate an increase in GDP of between 3 and 5 percent in the long run,” said the report’s conclusion.
The Democrats are calling this ‘Armageddon’ which proves that Trump is on the right track here.
The bill isn’t perfect there’s no doubt about that. There are some things in there that we could do without but at the same time there’s no doubt that millions of Americans are going to get to keep their money. At the end of the day, that’s a good thing.
Economist Stephen Moore, one of the smartest guys on the planet, wrote a great piece explaining why there’s no rational reason to stand against Trump’s tax cuts.
From The Hill:
As for the middle class, they will benefit primarily through more prosperity from this corporate tax cut. But they also benefit from their taxes being cut, too. The big benefits to the middle class include doubling the standard deduction to more than $24,000 from about $12,000 today. This means your first $24,000 of income is tax free. Tax rates at every income level will get cut by about 10 percent. Moreover, the child credit will double from $1,000 per child to $2,000. For a family with three kids that’s an extra $3,000 right off the top on taxes.
So where did this lie come from that the middle class will pay more taxes under the Trump tax plan? The president announced last week that he has instructed the Treasury Department to change the withholding tables by Feb. 1 so that the tax cut appears in people’s paychecks right away. Then they will see the Trump tax cut in bigger paychecks will realize that the left has been less than truthful.
No matter how you slice it.
[This post was written by Andrew Mark Miller]