Columns

Changing the Economy for the Better

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Washington, October 5, 2018 | Pete Larkin (540-857-2672) | comments
When the Tax Cuts and Jobs Act was passed last year, American families won. They took home more of their hard-earned money and were able to save for their futures.
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Americans deserve every opportunity to be successful. Before the Tax Cuts and Jobs Act, America’s tax code was stuck in 1986. After thirty-one years without major reform our economy was being held back by these dusty, outdated, and unfair tax laws. However, last year American families, businesses, and their retirement savings were given the opportunity to thrive, not just survive. With the House’s recent passage of Tax Reform 2.0, many of the changes to the tax code that have given Americans the opportunity to be abundantly successful are one step closer to becoming permanent.

Almost 40% of Americans can’t cover an emergency expense of $400. Half of adults say they are not able to save enough to retire comfortably and some don’t have retirement plans at all. America deserves better.

When the Tax Cuts and Jobs Act was passed last year, American families won. They took home more of their hard-earned money and were able to save for their futures. Tax Reform 2.0 contains three bills that lock in tax cuts for families and small businesses, simplify and expand family savings, and encourage entrepreneurship. It’s projected that with these changes 1.5 million new jobs will be created; wages will increase by nearly one percent while GDP could increase by 2.2 percent. This growth would further boost an already booming economy.

Currently, job creation has averaged over 206,000 jobs a month with a total of 1.7 million new jobs being created since the Tax Cuts and Jobs Act was enacted. This success has brought unemployment down to 3.9 percent, with it projected to continue to fall to 3.6 percent by the end of 2018. Over the last nine months, middle-class income is at an all-time high and wages have grown at their fastest pace in nine years. Best of all, families were given $1.1 trillion in tax relief. The Tax Reform 2.0 package would increase that to $1.73 trillion, a majority of which is given to middle class families. It is clear tax reform has changed the trajectory of the economy for the better.

If technology companies were to only update their software every 30 years, they would quickly fall behind their rivals. We should never allow America to fall behind our global competitors, so it is essential that we change the status quo in Washington so our tax code is continuously improved. For far too long, Americans have had to struggle to be financially secure. Tax Reform 2.0 ensures Americans can keep their hard-earned money and with these important reforms, our economy will continue to prosper and thrive. I urge the Senate to pass Tax Reform 2.0 so Americans can continue to benefit.
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