A new year brings a fresh start for people all over the country. There are new resolutions, new aspirations, new hope. This year, the same is true for the American economy. That’s in large part thanks to the Tax Cuts and Jobs Act, passed by Congress and signed into law by President Trump right before Christmas.
This legislation brings tax cuts to people and families at all income levels. It levels the playing field for American businesses, incentivizing companies to stay in America and hire U.S. citizens.
The tax cuts bill immediately brought a wave of economic confidence to begin 2018.
Right away upon passage, companies announced bonuses, pay raises, and reinvestment in their employees and the economy.
The stock market soared following the bill becoming law, thanks to the outstanding effects the corporate tax cut will have on the American economy.
As Chris Edwards, director of tax policy studies at the Cato Institute, told Fox Business, “The new tax law will tilt corporate decision-makers to move ahead with more of the U.S. projects they were considering because the returns will now be higher. That means new and expanded factories and facilities across the nation, which will push up the demand for labor and increase hiring and wages.”
In other words, the new tax law is good news for the U.S. economy. And what’s good news for the U.S. economy is good news for the American people. A new Wall Street Journal report noted that, after almost a decade of stagnant growth, wages in the U.S. are finally starting to increase, which means bigger paychecks for people in 2018.