Six months later, benefits of tax law meeting, exceeding expectations
Washington, D.C. – Taxpayers across the Sixth District and the nation are celebrating the six-month anniversary of the historic Tax Cuts and Jobs Act that led to bonuses, pay raises and lower taxes. USA Today reports that:
“Tax refunds in the Spring of 2019 are estimated to be 26 percent higher than this year, according to Wall Street firm Morgan Stanley.”
“We’ve really just scratched the surface of the benefits of this new tax law. In my district, we’re seeing our small businesses grow and families with more money in their paychecks to take vacations, save for retirement, pay for their kids’ college or save for a new home. These are significant benefits that are making a real difference in the lives of Americans across the country. And these are continuous benefits taxpayers see in every paycheck and every tax season,” said Representative Peter Roskam (R-IL), one of the chief architects of the new law.
In a hearing held by the Committee on Ways and Means, business owners testified to the benefits they’ve seen manifest in their businesses. Local Chicagoland business owner and employer, Zach Mottl of Atlas Tool and Die, testified before the Committee and talked about the impact the new tax law has already had on his business, saying, “My business has booked as many orders, as much revenue, and we’re only in the second quarter. We’ve booked as much revenue as we did the entire last year."
During an exchange with Mr. Mottl, Rep. Roskam asked about the impact the changes in the tax law are having on employees. “Last year we increased our 401(k) match… We gave a bonus at the end of last year. But I think the bigger picture, the long-term picture is the wage growth. We’re in a skilled workforce shortage here…I am desperate to not only keep the employees that I have, which means I need to pay them more…I also need to raise wages to hire good people. I see nothing but benefits for the worker. A healthy employer leads to a healthy job for the employee, and my company in the years past when we were struggling, we couldn’t afford to do those things. Now we can, now we’re reinvesting,” stated Mr. Mottl.
A recent column in The Hill details the effect these important tax cuts have had on small businesses, concluding:
“No matter what critics say, the economics and numbers are clear. There’s no denying the benefits accruing thanks to deregulation and that nice gift of business tax relief made law just before this past Christmas.”
Since the bill was signed into law, unemployment has dropped to its lowest rate in 18 years - 3.8 percent, one million jobs have been created and taxpayers across the country have seen increased wages and bigger paychecks. CNBC reports:
“Economists are slowly ratcheting up expectations for growth through the end of the year, with widely followed measures putting the second quarter at between 3.6 percent and 4.8 percent.”
The Department of the Treasury announced this week that new 1040 forms to file income tax returns will be released next week. PoliticoPro reports that the forms are, “…expected to be much shorter than the current form, which includes about 80 lines on two sides of paper.”
“Businesses are thriving, the economy is growing and families are looking forward to simpler filing and bigger refunds – and this is only the beginning,” said Roskam. “We’re going to continue to see the benefits of these tax cuts manifest in our communities and reflected in our economy. This is the tax code the American people deserve.”