Today marks two years since Republicans pushed the Tax Cuts and Jobs Act through Congress, which was signed a couple of days later by President Donald Trump, and Republican activist Grover Norquist argues the bill has been a rampant success across the board.
Democrats of course slammed the bill, saying it would only benefit corporations and the rich, but Norquist, in his latest piece for the Washington Examiner, thinks the bill did much more, saying that “businesses large and small responded by giving pay raises, 401(k) increases, bonuses, and other employee benefits.”
AT&T Inc. gave $1,000 bonuses to 200,000 U.S. employees, Pfizer followed with $100 million in bonuses for non-executives and Visa doubled it’s contribution match for employees’ 401(k)s to 10%.
Norquist gives some examples of small businesses benefiting as well, per Washington Examiner:
- Five Senses Spa, Salon, and Barbershop, based in Peoria, Illinois, gave $500 bonuses to its 20 employees and added employee benefits.
- Firebird Bronze, an Oregon-based manufacturer, was able to give its nine employees health insurance for the first time.
- Anfinson Farm Store, a family owned business in Cushing, Iowa, (population 223) gave its employees $1,000 bonuses and raised wages by 5%.
Norquist, the founder and president of Americans for Tax Reform, is obviously an advocate for tax cuts of this nature, but he does present some compelling evidence.
“A family of four earning the median annual income of $73,000 saw a federal income tax cut of $2,058, reducing their tax bill nearly 60%,” Norquist writes. “This is not a one-time reduction and will recur annually.”
Though, the tax cuts aren’t permanent yet and the changes to individual income taxes expire in 2025 unless Congress is able to extend them, which seems unlikely as long as Democrats control the House.
However, the child tax credit doubled from $1,000 to $2,000, which has helped 22 million families.
He also argues that taxes are much simpler now that 93% of tax payers are opting for standard deductions under the Tax Cuts and Jobs Act.
The economy is thriving, too. Trump’s tenure in office has been met with 7 million new jobs and 24 states have record-low unemployment. The unemployment rate for the country is at a 50-year-low 3.5%, and it’s been below 4% for 20 months now.
Norquist points to the stock market’s success as another plus for Trump. The S&P 500 has increased to almost 3,200 points after sitting around 2,100 points during the 2016 election, and those gains are directly benefiting 100 million peoples’ 401(k)s, 42 million households with IRAs and $4 trillion in public pension funds, which are heavily invested in the market, Norquist says.
The tax cuts are also almost paying for themselves, according to data from the nonpartisan Congressional Budget Office. Data shows economic growth from the cuts has funded almost 80% of the costs of implementing the duties.
Norquist thinks the Democrats are out to eliminate a lot of this progress with plans to repeal the Tax Cuts and Jobs Act along with implementing “Medicare for All” that would cost at least an estimated $30 trillion, according to recent reports.
The Republican activist sees the middle class eventually funding these plans because a wealth tax (like the ones being pushed by Democratic primary front-runners Bernie Sanders and Elizabeth Warren) would only foot 30% of the bill.
Warren wouldn’t stop there, either, as she has announced many other tax plans including a levy on stock trades, a 35% global corporate tax and even a tax on businesses for the amount of workers they employ.
Instead, Norquist thinks people should look forward to the Trump administration’s plans to launch his second round of tax cuts that aim to help the middle class and small businesses.
In the end, it seems like Trump’s tax cuts have been a boon for America, at least in Norquist’s eyes.
Editor’s note: Grover Norquist may be a bit biased because of his tax background and political leanings, but what do you think of Trump’s Tax Cuts and Jobs Act? Has it helped you or your business thrive? Share your thoughts below.