Tax reform is all about more jobs, fairer taxes, and bigger paychecks. That last one is particularly important. Pro-growth reform means a pay raise for American workers. And a new report from the Council of Economic Advisers (CEA) shows just how much they stand to gain from our plan.
The study finds that as a result of corporate tax reform alone, on average, American families will see a wage increase of at least $4,000 annually.
The pay raise is a result of reforms that help keep businesses in the United States and bring jobs and capital back home from abroad. (And this pay raise is even before tax cuts that Americans can expect to see.) Today, America has one of the highest corporate tax rates in the industrialized world at 35 percent. By slashing this rate to 20 percent, and bringing trillions of dollars in profits back home from overseas, we will unleash real wage growth not seen in a generation.
The CEA findings align with a recent survey conducted by the National Association of Manufacturers (NAM), which showed that a majority of American manufacturers would raise wages if tax reform is enacted.