This week, yet another study confirmed that tax reform will raise wages and create jobs. The analysis from the nonpartisan Tax Foundation shows that by cutting the corporate tax rate to 20 percent, average American households will see a pay raise of at least 2.5 percent, or $1,800.
Study after study has predicted similar benefits to hardworking Americans:
Council of Economic Advisors (10/16/17): Corporate tax reform will boost wages by at least $4,000 annually.
Lawrence Kotlikoff, former Council of Economic Advisors under President Reagan (10/17/17): Corporate tax reform will boost wages by at least 4 to 7 percent, or $3,500.
Lawrence Lindsey, former director of the National Economic Council (10/10/17): Corporate tax reform will boost wages by at least 4 to 5 percent.
National Association of Manufacturers (9/27/17): A majority of American manufacturers will raise wages and hire more workers if tax reform is enacted.
In addition, the study estimates that corporate tax reform will lift GDP by 3 percent and create at least 587,000 full-time jobs.
As the report explains, “There is typically little public support for corporate tax reform because most people don’t see how it will benefit their lives. Corporate tax reform may not ‘put cash in people’s pockets’ in the same way as a cut in individual tax rates, but it can have a powerful effect on lifting after-tax incomes and living standards.”
That’s why our plan will also cut individual tax rates, double the standard deduction, and increase the Child Tax Credit. Together, these reforms will allow American workers and families to keep more of their hard-earned money.
So don’t believe the tired, old arguments from the Left that tax reform is really just a tax cut for the wealthy. As Speaker Ryan recently told the Heritage Foundation, “This plan is really the single most important thing we can do to help the middle class.”