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Idahoans already seeing results of tax reform |
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February 2, 2018 |
By U.S. Representative Raul Labrador
By the end of this month, nine out of 10
Idahoans will begin receiving bigger paychecks
because Congress and President Trump enacted the
most significant tax reform in 31 years.
I voted for the Tax Cuts and Jobs Act in
December because it simplifies the tax code,
lowers overall rates for Idaho families and
eliminates loopholes that benefit special
interests. This bill helps keep the promise I
made to the people of Idaho and I was proud to
support it.
The new lower rates are putting money back in
the pockets of hard-working Idahoans. According
to the House Ways and Means Committee, a
four-person family in Idaho’s First
Congressional District making the median
household income will receive a tax cut of
$2,102 this year. An individual will pay $1,258
less.
On top of that, almost 300 employers have been
spurred by the tax cuts to implement a wide
range of benefits for 3 million American
workers, including wage and salary increases,
bonuses, or 401(k) match increases, according to
Americans for Tax Reform.
Thanks in part to changes in the tax rate,
companies are making lasting commitments to
invest in America. Exxon-Mobil is investing more
than $50 billion. Pfizer says it will spend $5
billion on capital projects, FedEx is adding
$3.2 billion, and Starbucks earmarked more than
$250 million for employee wages and benefits.
Dozens of Idaho businesses have made similar
announcements, including Ball Ventures, Home
Depot, Wells Fargo, Washington Federal and
Melaleuca. Melaleuca CEO Frank VanderSloot said
his 2,000 workers are getting a one-time bonus
of $100 for every year they have worked at his
company. Of those 2,000 workers, 147 have worked
there for at least 20 years.
Washington Federal announced that it would add
an additional tech office in Boise. Walmart,
which employs about 7,900 Idahoans, is raising
the starting wage for hourly workers to $11,
expanding benefits and providing bonuses of up
to $1,000. AT&T, with about 1,100 Idaho
employees, is investing $1 billion this year and
paying workers a $1,000 bonus.
Unfortunately some who opposed tax relief and
want the President to fail have turned their
noses up at the good news, among them House
Democratic Leader Nancy Pelosi who called the
increases “crumbs.”
But the fact is the tax bill is doing what we
said it would, letting workers keep more of
their hard-earned pay and stimulating growth.
Citing the tax cuts, the International Monetary
Fund boosted its estimate for 2018 growth in the
U.S. to 2.7 percent, up from 2.3 percent.
In the month following the passage of tax cuts,
the Dow Jones Industrial Average went up about
1,500 points, reaching the 26,000 mark for the
first time. During the President’s first year in
office, the Dow rose 31 percent – the best
annual gain of any president since Franklin
Roosevelt. And while U.S. unemployment is at a
seventeen-year low, we have every reason to
believe that job growth will accelerate as
consumer confidence rises thanks to expectations
for a better economy, according to The
Conference Board.
Despite the attempts of Pelosi and others, the
popularity of the new tax law is quickly rising
as Americans begin to see the benefits to their
families. A new NPR/PBS NewsHour/Marist poll
shows a remarkable 21-point swing between
December and January.
To help you learn how the bill benefits your
family, check out the New York Times Tax Bill
Calculator. For more information, you may read
the House and Senate Conference Committee Report
on the Tax Cuts and Jobs Act.
I hope you’ll join me in expressing optimism
about our economy. History is on our side. Major
tax relief laws passed under Presidents Kennedy,
Reagan, and George W. Bush were followed by
significant job creation, stronger growth, and
even higher tax revenue. I expect a similar
impact from the 2017 bill. |
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