The Biden-Harris administration has become synonymous with an economy in tatters. Americans are suffering from rising prices, stagnant wages, and increasing obstacles to starting a business, buying a home, and retiring. Americans’ economic outlook from 2021 to 2024, according to the Gallup Economic Confidence Index It became negative.
Compare this to the economic prosperity seen under the Trump administration. America enjoyed abundant energy, soaring wages, a record number of startups, and a staggering stock market average. Much of this success can be attributed to our 2017 results. Tax Cuts and Jobs Act (TCJA), a tax cut for families and small businesses that has fueled one of the strongest economies in decades.
But many provisions of the bill are now set to expire next year. Congress must act to extend tax cuts and reverse the economic stagnation of the Biden-Harris administration. (Related: Stephen Moore: Kamala Harris wants America to have the highest death tax in the world)
Trump’s tax cuts had an immediate positive impact on people’s lives. average american — Benefiting millions of people, especially families with children and small business owners. This law lowered Americans’ personal income tax rates by 80% and nearly doubled the standard deduction, allowing more families to keep the money they earned. The median real household income is increased With wages rising $5,000 and real wages rising 4.9%, most Americans now have more take-home pay to spend on necessities.
Provisions such as capital investment and income tax cuts encouraged growth-oriented investment by small and medium-sized enterprises. When I served as Commissioner of the Small Business Administration, I traveled to all 50 states and repeatedly spoke with business owners who were directly converting tax savings into business growth.
family run business north carolina to pennsylvania He cited the Trump tax cuts as a reason to pay for employee bonuses and new equipment. recently, 500 chambers of commerce He called for an extension of the tax cuts.
The naysayers try to claim that the tax cuts only benefited the top 1%, but this is patently false. The Tax Foundation points out that in the first year after the TCJA was passed, the share of the top 1% of taxpayers paying taxes did not decrease, but rather increased by 1.6 percentage points. 40.1%. The latest analysis (tax year 2020) shows it is now even higher, with up to 42.3%.
The richest people paid more taxes under the TCJA, but this is not what the radical left wants you to hear.
President Ronald Reagan’s 1981 and 1986 tax reforms eased the burden of income and corporate taxes on wage earners and job creators, and the economy took off. average Americans saw The inflation rate fell from 13.5% to 4.1%, the unemployment rate fell from 7.6% to 5.5%, and the prime interest rate fell by 10.5 percentage points. This was a historic turnaround during his eight years in office.
Like Reaganomics, President Donald Trump’s 2017 tax cuts were based on simple economic principles. In other words, if Main Street businesses pay fewer taxes, they can reinvest that money back into the workforce by offering higher wages, better benefits, and more job opportunities. When the average American worker benefits from lower taxes and higher take-home pay, families can afford to spend more and maintain long-term financial plans. This is a virtuous cycle created by both Reaganomics and the Trump tax cuts, and one that the Biden-Harris administration has suppressed with inflation- and job-killing policies.
Fed’s recent interest rate cut The run-up to the national election is an alarming harbinger of a precipitous decline in the Biden-Harris economy. With no clear plan to replace expiring tax cuts, struggling American families may end up facing Thousands more dollars In income tax liability.
small business ownerOn the other hand, under double-digit tax increases, businesses may be forced to downsize or close stores.
Congress has an obligation to not only extend tax cuts before they expire, but also to make them even stronger. undo Parts of the Biden-Harris administration are ideologically motivated Corporate tax creditmost recently as House Speaker Mike Johnson. Recommended in America First Policy Institute Events. The bottom line is that Bidennomics has failed.
Vice President Kamala Harris has tried to repackage this as “opportunity economics,” but this is the same disastrous policy.
Americans who have enjoyed simpler tax returns and higher paychecks for the past eight years now have to wait and hope those benefits don’t disappear in 2025. The evidence couldn’t be more clear. The 2017 tax cuts gave a boost to both small and medium-sized enterprises. We support working families by relieving them of excessive taxation and giving them the resources to build a strong economy.
Maintaining them and building on their success will be a lifeline for the majority of Americans.
Linda McMahon is president of the America First Policy Institute and its American Workers Center. She is a former head of the Small Business Administration and chair of the Daily Caller News Foundation’s advisory board.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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