Happy April 15. This tax day marks the first mass filing since the Tax Cuts and Jobs Act of 2017 took effect Jan. 1, 2018.
Tax-cut opponents and a complicit media tell average Americans our new tax law helps only the rich. Facts say otherwise.
“Over the past year, we have seen the benefits the Tax Cuts and Jobs Act has had on Colorado families,” said U.S. Sen. Cory Gardner, R-Colorado, who fought for the tax-cut law. “Higher wages, job growth, and bigger paychecks are all a result of the tax cuts, and it is my hope we can continue to pursue pro-growth policies in Congress to help more Coloradans.”
A report by the Urban-Brookings Tax Policy Center finds the new law reduces taxes for 70 percent of Colorado residents. Taxes increase for fewer than 8 percent of state residents under the new law.
Americans for Tax Reform lists major Colorado employers increasing wages and/or employee benefits because of tax cuts. A few examples:
• King Soopers launched a tuition assistance program and raised its 401K pension match from 4 percent to 5 percent;
• Ball Corporation announced plans to add at least 400 employees;
• Centennial Bolt announced tax-cut funded bonuses, more hiring, raises, business expansion, and increased charitable contributions;
• Xcel Energy passed $20 million in federal tax savings to natural gas customers in Colorado;
• Chipotle offered bonuses ranging from $250 to $1,000, raised employee benefits, and increased investment of profits into the business by $50 million;
• Bank of Colorado gave $1,000 bonuses to all employees.
The list could go on of companies using tax savings to improve compensation and create new jobs.
H&R Block reports this month “overall tax liability is down 24.9 percent on average.” That does not mean most Americans will see larger tax returns. When government take less, it has less to return.
“Tax benefit of tax reform shows up in paychecks rather than refunds…” the H&R Block report states.
Our sister publication The Washington Examiner reports the median cut was more than $1,000, and in many states was $1,400. Families with children enjoyed a bigger tax cut thanks to the increase of the child tax credit combined with lower rates.
Research by the White House Council of Economic Advisers shows blue-collar employment trending up by 300,000 jobs nationwide over the trend before the tax cuts.
Other tax-cut indicators show a rising tide that benefits all:
• Growth in the Gross Domestic Product throughout 2018 was the fastest since 2005;
• Investment in startups soared by $16.7 billion over the trend before the tax cuts;
• Investment by independent businesses grew by $26.4 billion over the trend before the tax cuts;
• Nominal hourly wages grew by 3.4 percent, setting the fastest pace in 10 years;
• lowest wage earners saw the fastest wage growth;
• Millions came off food stamps since tax cuts took effect;
• Businesses are borrowing and investing at record rates.
We must pay taxes to fund government. As Jesus implored, we must “render unto Caesar the things that are Caesars.” The goal is finding balance. Economic data indicate the tax cuts of 2017 move us in the right direction, improving the economic stability of most Americans and enhancing their liberty.
Happy tax day. Let us keep growing throughout 2019 and beyond, providing for government and the humanity it serves.