HELPING THE MIDDLE CLASS GET AHEAD: As President Donald J. Trump promised, the Tax Cuts and Jobs Act (TCJA) has delivered real savings for America’s middle class. 

  • An average family of four with an income of $75,000 will have their taxes cut by more than $2,000 in 2018 thanks to the TCJA.
  • On average, a single parent with one child making $41,000 a year will see a tax cut of more than $1,300, representing a more than 70 percent reduction in their tax bill.
  • The TCJA nearly doubled the standard deduction, helping the vast majority of middle class families who claim this deduction.
  • The TCJA eliminated the individual mandate penalty, which disproportionately affected low and middle income households.
  • The TCJA kept key deductions that help middle class families, while eliminating and capping certain deductions that especially benefited high income households and special interests.

MORE JOBS FOR AMERICAN WORKERS: President Trump’s tax cuts have generated more and more employment opportunities for American workers.

  • Since passage of the tax cuts, job openings have reached a record high, unemployment has fallen to historic lows, and workers have come off the sidelines and back into the labor force.
  • Job openings reached a record high of 7.6 million last year and continue to far exceed the number of job seekers.
    • Job openings have now outnumbered job seekers for 12 consecutive months.
  • The unemployment rate reached a near 50-year low last fall, on the heels of enactment of the TCJA.
    • The unemployment rate has remained at or below 4 percent for the last 13 months.
  • Workers that had been left behind and on the sidelines are coming back into the labor force and finding employment.
    • In the first quarter of 2019, more than 70 percent of the workers gaining employment came from outside of the labor force.

BIGGER PAYCHECKS: The TCJA is helping to put more money in workers’ pockets through lower tax bills, rising wages, and big bonuses.

  • In response to the tax cuts, companies have provided wage increases, bonuses, or increased retirement contributions to more than 6 million workers.
  • Workers have received an average bonus of $1,154, according to the Council of Economic Advisers.
  • In an attempt to attract workers, many companies have increased their minimum wages or offered better benefits to new employees.
    • In 2018, wage growth was fastest among low-income workers.
  • Wages are rising faster than they have in nearly a decade and is outpacing inflation, meaning more money in workers’ pockets.
    • Year-over-year nominal wage growth has reached, and exceeded, 3 percent for the first time since 2009.