It has been 2 years since President Donald Trump signed the Tax Cuts and Jobs Act (TCJA) into law and Americans continue to benefit from high wages and a strong job market. Unemployment is down, confidence in the job market is up, and small businesses are thriving.
Here are the numbers:
Since Trump took office in 2017, American businesses have created over 6.7 million jobs. In April, the unemployment rate hit a 50-year low of 3.6 percent, and the rate has been at or below 4 percent for 20 consecutive months. Currently, there are 157 million Americans in the workforce and the labor force participation rate is at 63.3 percent, a stark contrast to the 40-year lows seen under the Obama administration.
Small businesses have continued to offer more jobs with higher wages thanks to the Republican TCJA and the Trump administration’s deregulation efforts. The NFIB Small Business Optimism index, a measurement of the confidence small businesses have in the economy, recently increased to a historically solid reading of 102.4.
Americans are confident enough in the economy and the job market to leave their jobs and search for new career opportunities. In September 2019, there were 5.8 million job separations, 3.5 million of which were voluntary. After leaving their jobs, Americans have access to a record-high 7 million job openings. The ratio of unemployed persons to job openings stands at a record-low 0.9 percent, meaning there are more openings than people looking for jobs.
The TCJA is the product of a pro-growth administration and its successes will only be amplified over time. As a result of the legislation, 90 percent of wage earners received a tax cut. Americans are now able to control the way a larger portion of their income is spent, saved, or invested. In 2018, GDP grew $179 billion more than expected, and this will compound over 10 years to more than $6 trillion in growth. Additionally, the TCJA is predicted to create 1.2 million new jobs in total by 2027.
The results are in: the Trump administration’s winning combination of tax cuts and regulatory relief have led to record low unemployment, record high job openings, and strong growth for small businesses.
While Democrats are committed to thwarting economic growth with proposed tax hikes and $30 trillion plans for a total government takeover of healthcare, President Trump and Republicans in Congress have delivered win after win for the American worker.