Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website
Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website
Following the implementation of the 2017 Trump tax cuts, working Americans experienced significant wage growth. Real wages increased by 4.9 percent in 2018 and 2019, marking the fastest rise in two decades. This period also saw historically low poverty rates and unemployment levels for African American and Hispanic workers, as well as those without a college degree.
Chairman Jason Smith of the Ways and Means Committee emphasized that these tax cuts were particularly beneficial for blue-collar workers. "The Trump tax cuts were blue-collar tax cuts for America’s working families," he stated, highlighting that those in the bottom 10 percent of incomes experienced a 50 percent higher wage growth compared to those in the top 10 percent.
In contrast, Smith criticized current economic policies under President Biden, stating that average paychecks are now worth less than when his administration began. He noted rising credit card debt and drained savings accounts as indicators of financial strain on American families.
The American Workforce Tax Team, led by Rep. Darin LaHood, along with other members like Rep. Mike Carey and Rep. Lloyd Smucker, have been gathering feedback from small businesses about the benefits they received from these tax cuts. They reported that the 20 percent small business deduction allowed businesses to expand operations and increase wages.
In various committee hearings outside Washington D.C., employers shared how the Trump tax cuts enabled them to invest more in their businesses and employees. Karen Dewalt from Home Depot explained how a reduced corporate rate allowed for substantial investments in their supply chain and permanent wage increases totaling $2 billion over two years.
Rep. Claudia Tenney highlighted concerns about potential negative impacts if certain provisions expire, which could lead to reduced investment capabilities for small businesses like those owned by Lana Pol.
Tom Tredway, a manufacturer from Pennsylvania, praised the pro-growth strategies of the Tax Cuts and Jobs Act (TCJA), noting its positive impact on research and development incentives and capital investments.
Overall, supporters argue that the Trump tax cuts provided significant financial security and job creation before the pandemic hit.
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