President Donald J. Trump Achieved the Biggest Tax Cuts and Reforms in American History
BIGGEST TAX CUTS AND REFORMS: Because of President Donald J. Trump, Americans will benefit from the biggest tax cuts and reforms in American history.
- President Trump’s tax cuts are the biggest gross tax cuts in American history, cutting over $5.5 trillion in taxes over ten years.
- President Trump cut the corporate tax rate from 35 percent to 21 percent, the largest percentage point reduction of the top marginal rate in history.
- President Trump included the biggest family tax credit in American history.
- The Child Tax Credit was increased by $573.4 billion over ten years, larger than any previous change to credits specifically targeting families.
- President Trump’s tax cuts included some of the most substantial reforms to the tax code in American history.
- The Tax Cuts and Jobs Act will help end the offshoring of corporate money by transitioning the country to a territorial system of corporate taxation and creating anti-abuse rules for multinationals that artificially shift profits offshore.
- The Tax Cuts and Jobs Act nearly doubles the standard deduction, to simplify tax filing.
- The Tax Cuts and Jobs Act limits itemized deductions, while maintaining the most popular deductions, such as the mortgage interest deduction and charitable giving deduction.
- The Tax Cuts and Jobs Act facilitates school choice by allowing families to use 529 college savings plans for elementary and secondary education expense and spend up to $10,000 on private school tuition and related expenses, in addition to the uses previously allowed.
- The first new community development tax incentive program enacted since the Clinton administration, providing an opportunity for mainstream private investors to support businesses and distressed communities with the creation of Opportunity Zones.
- The Tax Cuts and Jobs Act repeals the individual mandate, marking the single largest legislative blow to Obamacare since the law was passed.
- This individual mandate is particularly painful for low and middle-income Americans: 79 percent of people who paid the penalty had household income below $50,000.
- The tax law’s repeal of the individual mandate relieves Americans from the unprecedented assault on liberty, where the Federal Government fined Americans for not purchasing something.
- As a combination of tax cuts and tax reform, the Tax Cuts and Jobs Act was therefore the biggest legislative action reforming our tax code in history.
- In the past, major net tax cuts and tax reforms were done separately. The Tax Cuts and Jobs Act signed by President Trump marks one of the first times large-scale net tax cuts and reforms were combined into one law.
AMERICAN COMPANIES ARE DELIVERING: Businesses throughout the country are responding to President Trump’s tax cuts by rewarding American workers.
- Since President Trump provided his historic tax cuts and reforms, more than 3.5 million American workers across more than 300 companies have received bonuses, raises, and increased. Many companies have also announced new investments and new hiring.
- Best Buy has announced it is giving a $1,000 bonus to full-time employees and a $500 bonus to part-time employees, in addition to investing $20 million to expand technology development centers across the United States.
- Quest Diagnostics is giving a bonus of up to $500 to nearly 40,000 employees and investing $75 million of its tax savings back into the company and employees.
- Discover announced it would raise its minimum wage to $15.25 an hour and had paid a $1,000 bonus to more than 15,000 non-executive employees.
- Hostess Brands is providing employees with a $750 cash bonus and $500 contribution to their 401(k) accounts, in addition to providing a year’s worth of free Hostess products.
- Cigna announced that it was increasing its minimum wage in the United States to $16 an hour and adding $30 million to its 401(k) program to match additional contributions, benefitting more than 30,000 employees.
- Lowe’s announced it was giving a bonus of up to $1,000 to employees and expanding its benefits package for full-time workers to include 10 weeks of maternity leave, two weeks of parental leave, and adoption assistance.
BUILDING ON OUR ECONOMIC MOMENTUM: President Trump’s tax cuts are expanding on a strong economy that continues to benefit American workers.
- Average hourly wages increased by 2.9 percent last year, the largest increase in 8 years.
- 200,000 jobs were added in January, while the unemployment rate remained at its lowest level in 17 years, 4.1 percent.
- Manufacturing expanded in January at near the fastest pace since 2004, according to the Institute for Supply Management data.
- Recent polling shows Americans are satisfied with the state of the U.S. economy, with the percentage of those polled with positive views of the economy at a 17-year high.
- Consumer optimism increased in January according to The Conference Board’s Consumer Confidence Survey.
- Consumers are confident that the strong pace of growth seen in late 2017 will continue in 2018.
- According to the UBS Investor Watch Quarterly, which surveys business owner sentiment, optimism has soared since the passage of tax reform.
- UBS found that positive economic outlook among business owners has grown by 18 percentage points between quarter four of 2017 and quarter one of 2018.
- UBS found that 79 percent of the businesses owners surveyed were satisfied with the tax bill and 72 percent believed it would boost the economy.