One Year Later: How Tax Reform Has Made a Difference

One Year Later: How Tax Reform Has Made a Difference

WASHINGTON — One year ago when Chairman Hatch spearheaded tax reform, he said this historic legislation would “turn the ship around.” Tax reform has lived up to that promise. Since it was enacted, economic indicators around the country have shown that this legislation is a proven success. Tax reform has driven up consumer confidence, created hundreds of thousands of new jobs, aided in boosting the American economy, and encouraged small business and entrepreneurial growth.

Here’s a look at some of the most significant benefits tax reform has produced over the past year:

January 2018 – Tax reform brought the corporate tax rate down to a competitive global rate giving companies the chance to reinvest in their organizations and employees. Hundreds of U.S. companies announce bonuses, wage increases, and other special investments.

February 2018 – Hard earned bonuses were not the only way Americans began to benefit from tax reform. By February 21, utility companies in at least 39 states had taken action to decrease the utility bills of almost 80 million customers.

March 2018 – Companies begin to invest in their employees outside the workplace. Citing tax reform, fast food chain McDonalds triples its education benefits program with an additional $150 million.

April 2018 – First quarter survey by the National Association of Manufacturers (NAM) reveals more than 93 percent of manufacturers have a positive outlook on their company’s prospects in the U.S. economy – the second-highest level ever recorded. Wage growth among those manufacturers surveyed also rose at the fastest pace in 17 years.

May 2018 – Surveys by National Federation of Independent Business (NFIB), NAM and Gallup show jobless claims are at a near 48-year low, the unemployment rate is the lowest since December 2000 and first quarter capital investments are up 21 percent (compared with the same time last year), meaning that more companies are investing in their businesses.

June 2018 – Small business optimism rises to its highest level in 30 years, expectations for business expansion and reports of positive earnings trends hit record highs, while expectations for strong increases in real sales reached their highest since 1995.

July 2018 – Bureau of Labor Statistics release shows compensation for workers rose to a nearly 10-year high reaching 2.8 percent.

August 2018 – GDP report by U.S. Department of Commerce shows the nation’s economy grew by 4.1 percent in the second quarter of 2018, marking the fastest economic expansion in nearly four years.

September 2018 – U.S. Department of Labor (DOL) report details that U.S. filings for unemployment benefits fell to the lowest in almost five decades.

October 2018 – In its Global Competitiveness Report, the World Economic Forum says tax reform has helped propel the U.S. economy to the top spot on the world stage for the first time in ten years.

November 2018 – DOL report reveals expanding economy created 155,000 new jobs in November to keep the unemployment rate at a 49-year low, while pay gains rose at the fastest rate in nine years.

December 2018 – Companies are continuing to invest in and create jobs for American workers. Apple, Google and Amazon all announce they are building new facilities across America that will eventually employ over 70,000 new workers.

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