A new report from Fidelity Investments is yet another reminder of the white-hot American economy induced by the Tax Cuts and Jobs Act. According to data from the second quarter of 2018, there are now more retirement accounts worth over $1 million than ever before — roughly 50,000 more than just last year.
That means more everyday Americans are able to retire comfortably without financial worry.
More evidence of success from the tax relief package are obvious and plentiful. Small business optimism is at a record high. Unemployment is historically low. Over 700 companies, including some of the nation’s largest employers, have reinvested their tax cut savings into worker compensation. And the most recent GDP growth figures reported that the economy is growing at a rate of 4.1 percent — quicker than most thought possible just a few years ago.
Meanwhile, over 90 percent of middle-class families are getting a tax cut, according to the left-of-center Tax Policy Center. The average family can expect roughly $2,000 in savings every year.
Yet, critics of the tax bill continue to pull dishonest attacks out of the woodwork.
First they tried to belittle the tax savings as crumbs. And when that didn’t work — unsurprisingly so since essentially everyone is benefiting in one way or another — they tried to spin the new standard deduction and lower rates for small businesses as a windfall for the wealthy. But anyone with eyes can see that the owner of the pizza shop on the corner or the general store down the street aren’t affluent millionaires.
Opponents of the tax cuts are throwing all the attacks they can conjure against the wall. But since the facts aren’t on their side, nothing will stick.
Unfortunately, they’re so committed to these tried-and-failed policies that they’ve stuck their heads in the sand to avoid all the good news about the federal tax cuts.
In a recent batch of headlines, the power of the tax cuts is unleashing American industry. Over 95 percent of manufacturers, large and small, feel good about their economic prospects — the highest level since the National Association of Manufacturers started measuring outlooks 20 years ago. Manufacturers are also raising wages, hiring new workers, expanding benefits, and purchasing new equipment.
CEOs say the tax cuts are spurring them to increase hiring and spending. Small businesses are also doing well. More small businesses plan to grow wages and operations than have in decades. Overall wages are growing faster and average base wages are up. Unemployment is low for everyone, but especially for minority groups compared to historical data.
Voters know the tax cuts work. Majorities have long supported the new code, approved of the economy, and expressed satisfaction with their opportunity to get ahead today. And consumer confidence remains strong.
All the griping from the critics hasn’t made a dent.
As the data rolls in, it’s clear that the tax cuts have produced such remarkable results while ensuring that the burdens of our tax code are well-balanced and fairly distributed. Nonpartisan experts estimate that high earners will pay more of the tax code burden this year than last and Americans in lower brackets will pay less.
Politics always gets heated in an election year. And Democrats and their well-funded activist army want to make tax cuts the wedge issue. That’s fine. While they try to ride their shopworn talking points to victory, Arizona voters will respond with something real that’s on the line: their bigger paychecks.
Drew John, a Republican from Safford, represents Legislative District 14 in the Arizona House of Representatives.
The views expressed in guest commentaries are those of the author and are not the views of the Arizona Capitol Times.