The economy grew at 2.9 percent in the last quarter of 2017, according to the Bureau of Economic Analysis. This news proves that President Trump’s tax cuts are working and shows a clear contrast between the sluggish 1.3 percent growth of the Obama years.
Deregulation is also responsible for this economic uptick. For every new regulation put on the books in fiscal year 2017, 22 regulations were slashed. This has saved a combined $8.1 billion in net federal regulatory costs so far. Cutting bureaucratic red tape and making it less costly to do business has been one of Trump’s best economic achievements so far.
Since Trump became president, business confidence in the economy is at an all-time high, according to the RMM US Middle Market Index. Economic growth has neared 3 percent over the past year, resulting in strong wage growth for middle class families.
A major part of this success is due to the passage of the Tax Cuts and Jobs Act. As a direct result of this bill, nearly 500 companies have announced bonuses, pay increases, or expanded employee benefits.
The tax bill reduced taxes for businesses of all sizes. The competitive, 21 percent corporate rate and the 20 percent deduction for pass-throughs businesses has allowed corporations and small businesses to hire more workers, invest in new equipment, or upgrade equipment.
Foreign investment in the United States is also at a record-breaking $35.5 trillion, according to data from the U.S. Bureau of Economic Analysis. This includes $8.9 trillion in U.S. factory investments and $8 trillion invested in shares of U.S. companies. President Trump’s pro-free market policies have encouraged foreign companies to invest in the United States instead of buying American exports.
Tax reform is not just good for American businesses and the economy. Families and individuals are also benefiting from the Tax Cuts and Jobs Act.
Over 90% of Americans have received a tax cut under the new tax code. Between 2018 and 2025, Americans will see a $1.17 trillion tax reduction as a result of the bill. A family of four earning $73,000 will see over $2,000 in tax cuts, a tax reduction of 58% A single parent with one child earning $41,000 per year will see $1,304 in tax cuts, a tax reduction of 73 percent.
The contrast between the Trump Administration and the Obama Administration couldn’t be clearer. Obama’s economic policy hampered growth and investment, while Trump’s policies are encouraging economic growth and investment. As tax reform and deregulation continue to spur economic growth and create jobs, we’ll see more good economic news in the months and years to come.