Middle-class families won’t forget the day our tax code was overhauled for the first time in 31 years. The Tax Cuts and Jobs Act will propel our economy into the 21st century, return money into the pockets of hardworking Americans and reward job creators who choose to invest right here at home. Passing the legislation was just the first step, and showing its value to middle-class Americans is now critical. Congress should not shy away from promoting this historic achievement. This is why Americans sent them to Washington.
Half of the country is living paycheck-to-paycheck, and the Tax Cuts and Jobs Act will help Americans increase their take-home pay. In fact, Americans want three things from tax reform: an increase in personal income, a reduction in cost of living, and a greater ability to save for the future and retirement. The Tax Cuts and Jobs Act delivers on each.
{mosads}A product of thousands of hours of diligent research, multiple iterations, and compromise, the Tax Cuts and Jobs Act represents the best of America. Now is the time to show Americans what this bill does for them and their bank accounts. In all of American Action Network’s research over the past year, it is clear that a majority of Americans like what is in the tax plan. In a recent survey, after hearing the basic components of the plan, respondents favored the plan by a margin of 56-27. While opponents to tax reform cite public polling showing Americans wary of the tax plan, this is a tremendous opportunity to show Americans why this bill helps them.
Unlike most news coming out of Washington, this bill’s passage will have a positive, tangible impact on middle-class families and job creators across the country. By lowering rates across the board, the average American family will save on average $2,059 each April. An expansion of the refundable child tax credit will reduce the burden on growing families, and nearly doubling the standard deduction for both single and joint filers will increase the number of households with no tax liability at all.
Middle-class families will also benefit from the economic growth the Tax Cuts and Jobs Act will spur. By slashing the business tax rate from 35 percent — the highest in the developed world — to a mere 21 percent, American companies will not only be able to compete globally again, but they’ll be able to do so from right here in the United States. Had we cut taxes a decade ago, more than 4,700 companies would have remained in America rather than move their operations overseas. A lower business tax rate will spark domestic investment, which means up to two million new jobs, higher wages, and increased opportunity for workers everywhere.
Americans know what they’re capable of, and they are done with the government holding them back. A recent poll conducted by Paragon Insights found that only 4 percent of voters believed comprehensive tax reform should not be done, compared to 73 percent who viewed it as a top priority. A majority of voters say federal income tax rates are too high, and three in five support lowering the business tax rate to help American companies compete worldwide.
Lawmakers have heard our voices, and we are incredibly grateful for all the long hours they’ve put in to make comprehensive, pro-growth tax reform a reality. Most importantly, the hardworking men and women of America deserve relief, and they will get it in this new year. It is now our job to show them.
Corry Bliss is executive director of the American Action Network.