Since major tax cuts were passed by a Republican Congress (without a single Democrat vote) and signed by President Donald Trump, businesses across the country are investing in their employees though bonuses, investing in their companies through research and development, and investing in the U.S. worker by creating jobs. Companies are raising their hourly wages, investing in employee pension funds, and contributing to charities. President Trump has stated, “When we began our push for tax cuts, I promised that our bill would result in more jobs, higher wages, and tremendous relief for middle-class families, and that is exactly what we have delivered.”
While Democrats railed against the tax cuts as being “Armageddon,” the only visible disaster appears to be their own loss of power — the power of controlling people through class warfare rhetoric and empty accusations. Every time another company gives their employees a bonus, the Democrat lie of Armageddon becomes even more baseless, absurd and ridiculous.
The same goes for their other line of attack that raises and bonuses are “crumbs.”
Americans for Tax Reform’s growing list of 346 companies giving bonuses, pay increases or 401(k) contributions reveals that 3.5 million Americans (and counting) are benefitting as a direct result of the new tax law. Companies issuing bonuses, wage increases, gifts of stock, 401(k) contributions, corporate charitable donations or other benefits include AT&T, Home Depot, Bank of America, Pfizer, FedEx, Lockheed Martin, Exxon Mobil, Walmart, Verizon, Apple, Fiat Chrysler, JP Morgan, Anthem, Lowe’s, Humana, Best Buy, CVS, Chipotle, Tyson Foods, Hostess Brands, Boeing, Comcast, Comerica Bank, and Southwest Airlines.
Trump’s tax cuts reveal the truth about the free market: When the market is free, the people are free. As F.A. Hayek, Nobel Prize winner in economics, stated, “Economic and political freedom are inseparable.” Fewer regulations and lower taxes free companies to thrive, and when companies thrive, workers thrive. And when workers thrive, the country thrives. Economic freedom grants both political and personal freedom.
Republicans’ Tax Cuts and Jobs Act stands as the most sweeping and comprehensive tax reform in the past 30 years. Tom Giovanetti, president of the Institute for Policy Innovation, a public policy research organization, writes, “President Trump has already done more to grow the U.S. economy than the last four presidents and 28 years combined.” Lowering the corporate tax rate from 35% (the highest rate in the developed world) to 21% finally positions the United States to be competitive in a global economy. Giovanetti continues, “Beginning in 2018, the U.S. is once again the best place in the world to do business. … Look for companies to relocate their headquarters and facilities to the U.S., instead of U.S. companies moving offshore.” This means millions of American jobs for American workers. For example, Fiat Chrysler, has already announced plans to relocate back to the U.S. from Mexico, a move that will create 2,500 new jobs in Warren, Michigan.
Furthermore, as a result of the tax cuts, utility companies plan to lower prices for consumers. DTE Energy proposed a 3% energy rate cut for its customers, while Pepco, Baltimore Gas and Light, Pacific Power, Rocky Mountain Power and Commonwealth Edison also announced they would be reducing rates for customers.
In addition, recent polling reveals an increase in optimism. Americans with positive views of the U.S. economy are at a 17-year high according to a new NBC News/Wall Street Journal poll. A recent UBS Investor Watch Report also revealed soaring optimism for business owners. The report indicates that 73% of respondents believe the recent tax reform makes business ownership more attractive. In addition, 72% responded as highly optimistic regarding the state of the current economy. This stands as the highest level since the financial crisis.
Last month, in his remarks to the World Economic Forum in Davos, Switzerland, President Trump referred to this optimism, stating, “There has never been a better time to hire, to build, to invest, and to grow in the United States. America is open for business, and we are competitive once again.”
Ultimately the Trump tax cuts represent not only a triumph for the American worker, but a triumph for supply-side economics. Rather than the Keynesian theory of economics in which government spending “stimulates” the economy, supply-side economics posits that freeing the market, allows the market and the people to flourish. As a result of tax cuts, not government mandates, companies are paying higher wages, granting bonuses, contributing to 401(k)s, giving to charities and establishing family leave policies. The notion that big government, high regulation and class warfare present the solution to our country’s problems has begun to fade. In its place, freedom, enterprise and ingenuity have begun to live once more. Dream again, America. This is your time.