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Fact Sheets

Tax Reform Unleashes America’s Economic Potential

Budget & Spending

Issued on:

TAX REFORM FOR ECONOMIC GROWTH: President Donald J. Trump’s tax reform will revitalize the American economy and create millions of jobs.

  • Reforming our outdated tax system is critical to boosting economic growth from the recent annual average of 2 percent to 3 percent or more.
  • Over the next ten years this sustained increase in growth will create:
    • 12 million new jobs,
    • $10 trillion in additional economic activity, and
    • $3 trillion in budgetary savings.

A RECORD OF ECONOMIC SUCCESS: President Donald J. Trump is following past successful tax reforms to jumpstart the economy, create jobs in America, and boost wages.

  • Under existing policies, the Congressional Budget Office (CBO) projects economic growth to be stuck at 2 percent for the next ten years. Tax relief and reform can boost economic growth, create jobs, and raise wages for working Americans.
  • Tax cuts, like those included in President’ Trump’s tax reform package, boost economic growth, according to the Tax Foundation.
    • President Bush’s 2001 tax cuts contributed 2.3 percent to economic growth over ten years.
    • President Clinton’s 1997 tax cut contributed 0.8 percent to economic growth over ten years.
    • President Reagan’s 1986 corporate income tax cut contributed 3.3 percent to economic growth over ten years.
    • President Reagan’s 1981 tax cuts contributed 8 percent to economic growth over ten years.
    • President Kennedy’s 1962 and 1964 tax cuts contributed 6.2 percent to economic growth over ten years.
  • Tax reform, including tax cuts, encourages the investment needed to create jobs so Americans can get back to work at well-paying jobs, according to Freedom Partners.
    • After President Bush’s 2003 tax cuts, the economy created 6.9 million new jobs over five years.
    • After President Reagan’s 1981 tax cuts, the economy created 11.7 million new jobs over five years.
    • After President Kennedy’s tax cuts, the economy created 9.3 million new jobs over five years.
  • A crushing tax burden on American companies is really a crushing tax burden on American workers.
    • Economists agree that America’s corporate tax harms America’s workers by keeping their wages low.
      • According to one study by the CBO, more than 70 percent of the corporate tax burden is put on American workers.

AMERICAN ENERGY POSITIONED TO BENEFIT FROM TAX REFORM: President Trump has prioritized the energy sector to help create greater energy independence and is well-positioned to benefit from tax reform and bring back a Made-in-America economy.

  • President Trump and his Administration have acted aggressively to increase exports of our energy resources to the global market.  The Trump Administration has:
    • Updated guidance from the Treasury Department to allow the United States to promote investments in overseas coal development in a meaningful way.
    • Expedited the permitting and approval processes of Liquefied Natural Gas (LNG) terminals and exports, including the approval of the Lake Charles LNG terminal in Louisiana.
      • This regulatory streamlining will accelerate the rebuilding of the community around Lake Charles, an area that has been hit hard by Hurricane Harvey.
    • President Trump has unleashed oil and gas development in the United States by expanding access to resources and the infrastructure needed to get energy to market. President Trump has:
      • Approved the Keystone XL and Dakota Access pipelines, creating over 42,000 jobs and $2 billion in earnings.
        • Signed an Executive Order to help ensure that future pipeline work will be done by American workers and with American steel.
      • Expedited new pipeline approval and production, such as the New Burgos Pipeline to Mexico.
      • Signed an Executive Order to extend offshore oil and gas drilling and reissued a leasing program to develop offshore resources.
      • Boosted oil and gas development on Federal lands.
    • The Environmental Protection Agency is reconsidering an Obama-era rule on greenhouse gas emissions that is estimated to cost oil and natural gas operators as much as $530 million annually.
    • President Trump kept his campaign promise to coal miners and rolled back the previous administration’s “Stream Protection Rule,” which targeted the beleaguered industry with estimated costs of at least $81 million per year.