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Good News Keeps Rolling in for American Workers and the American Economy Following Tax Reform

Economy & Jobs

Issued on:

GOOD NEWS FOR AMERICAN WORKERS: President Donald J. Trump’s tax cuts are getting more and more employers to announce new investments, bonuses for workers, wage boosts, and increases in retirement benefits. 

  • Across the United States, more than 280 companies have announced new investments, employee bonuses, higher wages, and increased contributions to retirement plans.
  • Companies have already announced compensation increases or special bonuses for at least 3 million American workers – just barely a month after the tax cuts became law.
  • Major new announcements that will benefit American workers continue to roll in.
    • Lockheed Martin has announced that it will be investing $200 million in research and development this year and will make new charitable contributions to science, technology, engineering and math (STEM) programs.
    • FedEx has announced three major programs, including more than $200 million in increased employee compensation, a $1.5 billion contribution to the FedEx pension plan, and a $1.5 billion investment to expand facilities.
    • ExxonMobil plans to invest more than $50 billion to expand its business in the U.S. over the next five years, including $35 billion in newly announced investments.
    • The Home Depot has announced that it will be providing a cash bonus of up to $1,000 to its U.S. hourly associates.
    • Walmart has announced cash bonuses of up to $1,000 to its hourly associates, and is also raising its minimum pay company-wide to $11 an hour.
    • Pfizer has announced it will invest approximately $5 billion in capital projects in the U.S. over the next five years, contribute $500 million to its U.S. pension plan, and allocate $100 million to provide bonuses to its non-executive employees.
    • Verizon is granting shares of stock as bonuses valued at $2,600 to 155,000 non-management employees.
    • Apple is issuing shares of stock valued at $2,500 as bonuses to employees, plans to invest $30 billion in capital expenditures, and will create 20,000 new jobs.
    • Starbucks announced changes that will benefit over 150,000 employees, including higher wages, family leave policies, and stock grants of $500-$2,000.
    • Fiat Chrysler is issuing $2,000 bonuses for 60,000 employees and has announced an additional $1 billion investment in a Michigan plant, creating 2,500 new jobs.
    • JPMorgan has announced $20 billion in new U.S. investment, including the creation of 4,000 new jobs and approximately 10 percent pay raises for its 22,000 existing hourly employees.

BUILDING ON OUR ECONOMIC MOMENTUM:  President Trump’s tax cuts will accelerate the country’s economic growth.

  • Recent polling shows Americans are satisfied with the state of the U.S. economy, with the percentage of those polled with positive views of the economy at a 17-year high.
  • Consumer optimism increased in January according to The Conference Board’s Consumer Confidence Survey.
  • Consumers are confident that the strong pace of growth seen in late 2017 will continue in 2018.
  • According to the UBS Investor Watch Quarterly, which surveys business owner sentiment, optimism has soared since the passage of tax reform.
    • UBS found that positive economic outlook among business owners has grown by 18 percentage points between quarter four of 2017 and quarter one of 2018.
    • UBS found that 79 percent of the businesses owners surveyed were satisfied with the tax bill and 72 percent believed it would boost the economy.
  • The number of Americans filing for unemployment benefits has fallen to the lowest level since 1973 – a time when the economy had only half as many workers who could potentially get laid off.

AN OVERDUE BOOST TO AMERICAN BUSINESS: President Trump’s tax cuts enact long-overdue reforms that will promote economic growth here in the United States.

  • The Tax Cuts and Jobs Act lowered the corporate tax rate from 35 percent, the highest in the developed world, to 21 percent, enabling American businesses to compete and grow. Over the next five years, businesses will be able to deduct 100 percent of the cost of their capital investments in the year they make the investment.
    • As a result of these tax cuts, businesses will be able to invest more of their earnings in their business, including hiring more workers and increasing wages.
  • Cutting taxes on “pass-through” businesses will provide much-needed relief for small and mid-sized businesses.
  • Under the Tax Cuts and Jobs Act, most owners of “pass-through” businesses, such as S corporations and sole proprietorships, will now be able to deduct 20 percent of their business income.
  • Over 90 percent of all American businesses are organized as “pass-through” entities.