This afternoon, the indpendent Tax Foundation released an initial analysis of the Tax Cuts and Jobs Act introduced in the House this week. Their research shows the economy booming, leading to more jobs, higher wages, greater income, and a relative boost in tax revenue.
Specifically, the Tax Foundation finds the plan would result in:
- 890,000 more full-time equivalent jobs
- 3.5 percent increase in size of the U.S. Economy
- 2.7 percent higher wages for workers
They report, "The larger economy and higher wages are due chiefly to the significantly lower cost of capital under the proposal, which is mainly due to the lower corporate income tax rate.”
But that’s not all. When taking into account the tax cuts for individuals, incomes will rise even more. The report finds: "When accounting for the increased GDP, after-tax incomes of all taxpayers would increase by 4.4 percent in the long run."
As we’ve said—and this independent analysis confirms—the Tax Cuts and Jobs Act is all about more jobs, fairer taxes, and bigger paychecks.