This week marks the fifth anniversary of the passage of the highly successful Trump Tax Cuts that CTUP co-founders Larry Kudlow and Steve Moore had a big hand in crafting.
So did Kevin Brady, who was the Chairman of the GOP House Ways and Means Committee, who has issued a new report on the tax cut impact. The Democrats keep attacking the Trump tax cut as a $2 trillion tax giveaway even though tax revenues soared after its passage. Here are the facts:
- Just one year after the Tax and Jobs Act went into effect, the growth in wealth of lower-income families outpaced that of the upper class – for the first time since 2007.
- TCJA reduced the average federal tax rate from 20.8 percent to 19.3 percent for all filers.
- Republican tax reform led to the lowest unemployment rate in 50 years.
- Unemployment reached all-time lows for African-American workers, Hispanic workers, and workers without a high-school degree.
- American workers also enjoyed the fastest wage growth in a decade.
- The plan led to the lowest poverty rate in a half-century and shrunk income inequality for the first time in anyone’s memory.
The midterm elections are critical because if the Democrats hold on to their majorities in congress, they have pledged to let the tax plan expire. Republicans promise to make it permanent. And why not? If something is working you don’t kill it.