Tax cuts are “Armageddon” and “the worst bill in the history of the United States Congress,” said House Minority Leader Nancy Pelosi (D-Calif.) in December. They’re “irresponsible, reckless, unjust, and just plain cruel,” said Sen. Cory Booker (D-N.J.). “Republicans will rue the day they passed” tax cuts, said Senate Minority Leader Chuck Schumer (D-N.Y.). They’re “highway robbery,” said Sen. Bernie Sanders (I-Vt.) and “a heist” addedSen. Elizabeth Warren (D-Mass.).
Whoops. What a difference a couple of months make. The early returns are in and tax cuts are an unqualified success. Hundreds of major American companies, which collectively employ millions of Americans, have directed part of their tax savings to significantly raising worker pay.
Walmart, the nation’s biggest employer with 1.4 million U.S. employees, raised its minimum wage to $11 and gave up to $1,000 bonuses to its employees. It turns out tax cuts have done more for entry-level employees than the “Fight for $15” ever has. Paychecks this month are also bigger due to new IRS tax withholding tables taking effect.
According to the Tax Policy Center, the average earner will receive about $135 more a month, and more if they have kids. At the household budget level, this means cable, smartphone, or utility bills can be taken care of. For the broader economy, this means more than 100 million American workers keeping more of their money at home where it’s needed and sending less off to Washington, D.C., where it doesn’t stimulate local communities and Main Streets.
The latest jobs report suggests tax cuts have contributed to the current tight labor market that is generating the fastest average wage growth in nearly a decade. Some economists, like those at the Atlanta Federal Reserve, are predicting 4 percent economic growth, levels mainstream economists, like Austan Goolsbee and Larry Summers, scoffed at mere months ago.
Read the rest at: DemoMath!