A little over a year ago, President Trump kicked off his tax reform campaign in Springfield, Missouri at the Loren Cook Company. In his speech, President Trump said the choice of a business in Springfield to launch this campaign was easy.
As the birthplace of the historic Route 66, Springfield is where businesses and individuals can come to prosper. His speech promised a pro-growth plan that would help hard-working Americans who were barely getting by, and businesses that were burdened with overregulation and excessive taxes. Less than six months after his speech, President Trump signed the Tax Cuts and Jobs Act (TCJA) into law, making good on those promises.
Under the president’s leadership, the economy is booming, with an economic growth rate of 4.1 percent in the second quarter of this year alone, almost double what it was at this time in 2016. From a record number of jobs added to the lowest unemployment rate in years, Republican efforts to rebuild the economy in a way that works for the people are paying off. Since President Trump’s election, the economy has created 3.7 million jobs, adding 1.3 million of those jobs since the TCJA became law.
Much like the economy, individuals and families felt the benefits from the TCJA almost immediately. After the bill was signed into law, 90 percent of Americans saw an increase in their paychecks. Under the TCJA, a family of four saves an average of $2,059 and a single parent of one child saves an average of $1,304 per year. And for the 61 percent of Americans that can’t cover an unexpected emergency that costs $1,000, this extra money means having the chance to build a financial safety net that they previously struggled to save for.
While helping individuals and families was a top priority when drafting the TCJA, helping the many small businesses in the U.S. was also a major victory. And Missouri businesses were no exception when it came to taking advantage of the bill’s passage. Hunter Chase & Associates, a small construction company in Springfield, gave its 30 employees bonuses while also investing in new equipment all thanks to the TCJA. Great Southern Bank, Inc., also located in Springfield, gave both its part-time and full-time employees bonuses. Along with these and other businesses, utility companies also passed along its tax savings. Liberty Utilities-Empire District and Missouri American Water, both located in Joplin, reduced utility rates for their customers, putting more money back into the pockets of hard working taxpayers.
Republicans set out to overhaul a decades old tax code in a way that benefits every hard-working American, regardless of their background, and the passage of the TCJA achieved that goal. I look forward to continuing to work with my colleagues on tax reform 2.0, which will be released in September. Tax reform 2.0 would ensure TCJA tax cuts are permanent and would create incentives for both businesses and individuals to innovate and save money.