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Fact Sheets

President Donald J. Trump’s Tax Cuts Are Delivering For Hardworking Americans and Our Manufacturers

Budget & Spending

Issued on:

DELIVERING FOR HARDWORKING AMERICANS: Helping hardworking Americans is a guiding principle of President Donald J. Trump and his tax cuts are delivering.

  • Nationwide, more than 2 million workers have had a “Trump Bonus” or “Trump Pay Raise” announced as a direct result of the Tax Cuts and Jobs Act.
    • The Council of Economic Advisers projects that annual income for American households will increase by an average of $4,000.
  • President Trump’s tax reforms provide $3.2 trillion in net tax cuts to American families, with every income group seeing a tax cut.
  • The standard deduction has nearly doubled for many Americans, with levels now at $12,000 for individuals, $18,000 for single parents, and $24,000 for married couples.
  • The Child Tax Credit has increased by $1,400 for children under the age of 17.
    • The full Child Tax Credit will now be available for families with incomes of up to $200,000 for single taxpayers and incomes of up to $400,000 for married couples.
    • A $500 non-refundable tax credit has been created for dependents aged 17 or older who do not qualify for the Child Tax Credit.
  • Middle-income families are no longer forced onto the Alternative Minimum Tax, with the income phase-out level for exemptions increasing to $500,000 for single households, and $1 million for married couples.
  • Popular itemized deductions have been retained, such as the mortgage interest deduction for newly-purchased homes of up to $750,000, and the deduction for charitable giving.
  • Important benefits have been left intact, including the EITC for low-income workers, the deduction for teachers’ out-of-pocket classroom expenses, and the adoption expense tax credit.

DELIVERING FOR MANUFACTURERS: American manufacturers are optimistic like never before, because President Trump’s tax cuts and relief make them more competitive.

  • The National Association of Manufacturers credits President Trump’s “bold, comprehensive tax reform” with driving optimism among their members to “unprecedented heights.”
    • NAM’s Manufacturers Survey found Q4 2017 optimism levels at “the highest [point] in the survey’s 20-year history.”
  • The Council of Economic Advisers estimates that these tax cuts will ultimately grow the economy an additional 3 percent.
  • S corporations, partnerships, and sole proprietorships will be able to deduct 20 percent of their qualified business income.
  • America’s corporate tax rate was cut from the highest among developed economies to 21 percent, well below the average.
  • Businesses will be able to deduct 100 percent of non-structure capital investment costs for the next five years.
  • As the benefits of tax reform become clearer to businesses, employees across America are receiving raises, bonuses, and increases to their benefits.
  • Chrysler has announced that the tax reform has so improved the U.S. business climate that, in addition to giving $2,000 bonuses to its U.S. employees, it will move truck production from Mexico back to the U.S., creating 2,500 new American auto manufacturing jobs.

THE TRUMP BUMP IN PENNSYLVANIA: President Trump has delivered tax cuts for the Keystone State, restoring economic optimism and opportunity to businesses and residents.

  • Local Pennsylvania businesses are passing the benefits of tax reform back to their communities. Including:
    • The H&K Equipment (Coraopolis, PA) is investing back into their own company at a rate 50 percent higher than last year.
      • H&K Equipment directly credits President Trump’s tax cuts for providing them with the ability to expense 100 percent of the investments they make in new construction and demolition equipment.
    • AccuWeather (State College, PA) will give year-end bonuses to hundreds of its employees.
    • American Bank (Allentown, PA) is giving employees $1,000 bonuses.
    • Fidelity Deposit and Discount Bank (Dunmore, PA) has given all employees earning less than $100,000 in annual compensation a $1,000 bonus.
    • Meridian Bancorp (Malvern, PA) has increased its minimum wage to $15 per hour, with an additional 20 percent added to 2017 bonuses.
    • NexTier Bank (Butler, PA) is giving all of its employees a $1,000 bonus.
    • Navient (Hanover, PA), which employs more than 900 people in Hanover, PA, gave nearly all of its roughly 6,700 employees a $1,000 bonus.
  • Some of America’s largest companies with investments in Pennsylvania are extending the benefits of tax reform to their employees, with increased hiring, benefits, and wages. Including:
    • Pittsburgh’s PNC Financial Services is giving $1,000 bonuses to 47,500 of its nationwide employees, while increasing base wages, retirement program contributions, and its charitable giving.
    • Wal-Mart—the single largest private employer in Pennsylvania—is increasing the base wage for all hourly employees to $11, issuing bonuses of up to $1,000, expanding opportunities for maternity and parental leave, and giving employees up to $5,000 for adoption expenses.
    • Comcast—Pennsylvania’s 15th largest employer—plans to award “special $1,000 bonuses” to nearly 100,000 of its nationwide workforce.
    • American Airlines—Pennsylvania’s 31st largest employer—will be giving $1,000 to each non-Officer employees at all “mainline and wholly owned regional carriers.”