Ninety percent of middle class Americans are enjoying tax cuts this year — to the tune of $1,600 a year for the median earner. Families who earn around $75,000 are seeing their income tax bills cut in half. Those earning around $50,000 a year are seeing them disappear entirely. And small firms are going from being taxed at a marginal rate of 40 percent to a new 20 percent tax deduction.
“At the heart of our plan is tremendous relief for working families and for small businesses,” as President Trump told Americans at an address in Cincinnati. At the State of the Union, Americans met Dayton’s own Corey Adams, a welder at Staub Manufacturing. Staub’s tax savings added coworkers while improving Corey’s own wages. Now he’s bought his first house.
Ohio is a great showcase for the tremendous impact of today’s tax cuts because we’re a small business economy. But we’re far from the only one. Our small firms constitute over 98 percent of all businesses in the state. They’re responsible for almost half our employment in the private sector. Numbers like that pop up again and again nationwide.
When America’s small businesses grow and succeed, the benefits spread quickly throughout our families, neighborhoods, and communities—not because some theory says so or a politician makes it sound good, but because small firms are woven so closely into the fabric of our everyday lives.
The numbers reflect that reality clearly. Small business confidence, along with planned expansion and wage growth, is at generational highs. And public confidence in small business stands at historic highs to match.
Consider these figures: Three million workers have already been given tax cut-induced raises in addition to enjoying less tax withholding from the tax cuts. In January alone, reports show, over $30 billion went to worker bonuses as high as $3,000. From Waste Management to Costco and well beyond, more and more companies are announcing that wages, improvements, and benefits are going up thanks to the tax relief. Top CEOs have beefed up their anticipated sales, spending, and hiring.
It’s easy to look around at all this prosperity and think, how could it have been any different? Well, if America’s future were left to the critics who opposed the tax overhaul, we’d be in a different world.
It has taken time for the reality of our tax cut prosperity to counteract the effects of their sour and misleading messaging. But in the few months after the new tax bill became law, America’s outstanding experience with the fruits of our tax cuts put the critics to shame in short order.
Regardless of party affiliation, majorities feel good about today’s economy. In spite of the critics, confidence in tax benefits jumped by as much as 25 points or more in Congressional districts across the country, both in states that voted for President Trump and in those that didn’t. Majorities in nine states represented by Democrats in the Senate—including Ohio, where most say the economy’s better than last year—approve of the tax code. So do majorities nationwide.
The experts agree, too. Shareholders are encouraging companies to put more money into expansion and investment. Top economists now forecast above-average growth year over year, with some predicting expansion at a 4 percent rate. In a hot economy with a tight labor market, that’s an extraordinary achievement. Inflation, which some cautious prognosticators worry about, has been kept in check.
On taxes, our leaders in Washington did what voters sent them to do. They worked hard to pass long overdue legislation that benefits us all. Politics is probably always going to revolve around rhetorical jousting and calculated criticism. But when it comes to the new tax cuts, the facts speak for themselves.
Jim Burgess is a Republican candidate in the primary for U.S. Congress in Ohio’s 3rd District.