HELPING THE MIDDLE CLASS GET AHEAD: As President Donald J. Trump promised, the Tax Cuts and Jobs Act (TCJA) has delivered real savings for America’s middle class.
- An average family of four with an income of $75,000 will have their taxes cut by more than $2,000 in 2018 thanks to the TCJA.
- On average, a single parent with one child making $41,000 a year will see a tax cut of more than $1,300, representing a more than 70 percent reduction in their tax bill.
- The TCJA nearly doubled the standard deduction, helping the vast majority of middle class families who claim this deduction.
- The TCJA eliminated the individual mandate penalty, which disproportionately affected low and middle income households.
- The TCJA kept key deductions that help middle class families, while eliminating and capping certain deductions that especially benefited high income households and special interests.
MORE JOBS FOR AMERICAN WORKERS: President Trump’s tax cuts have generated more and more employment opportunities for American workers.
- Since passage of the tax cuts, job openings have reached a record high, unemployment has fallen to historic lows, and workers have come off the sidelines and back into the labor force.
- Job openings reached a record high of 7.6 million last year and continue to far exceed the number of job seekers.
- Job openings have now outnumbered job seekers for 12 consecutive months.
- The unemployment rate reached a near 50-year low last fall, on the heels of enactment of the TCJA.
- The unemployment rate has remained at or below 4 percent for the last 13 months.
- Workers that had been left behind and on the sidelines are coming back into the labor force and finding employment.
- In the first quarter of 2019, more than 70 percent of the workers gaining employment came from outside of the labor force.
BIGGER PAYCHECKS: The TCJA is helping to put more money in workers’ pockets through lower tax bills, rising wages, and big bonuses.
- In response to the tax cuts, companies have provided wage increases, bonuses, or increased retirement contributions to more than 6 million workers.
- Workers have received an average bonus of $1,154, according to the Council of Economic Advisers.
- In an attempt to attract workers, many companies have increased their minimum wages or offered better benefits to new employees.
- In 2018, wage growth was fastest among low-income workers.
- Wages are rising faster than they have in nearly a decade and is outpacing inflation, meaning more money in workers’ pockets.
- Year-over-year nominal wage growth has reached, and exceeded, 3 percent for the first time since 2009.