SECRETARY OF THE TREASURY STEVEN MNUCHIN: “THE TAX CUTS AND JOBS ACT IS WORKING”

Office of the Press Secretary FOR IMMEDIATE RELEASE April 15, 2019 SECRETARY OF THE TREASURY STEVEN MNUCHIN: “THE TAX CUTS AND JOBS ACT IS WORKING” “Lower tax rates, higher standard deductions and larger child tax credits have benefited most Americans.” The Tax Cuts and Jobs Act is working By Secretary Steven Mnuchin CNN April 15, 2019   Americans just finished filing their taxes for 2018. And this is the first year that the benefits of the Tax Cuts and Jobs Act (TCJA) have been improving the lives of our citizens. In fact, we are pleased to report that we have experienced a year of more jobs, bigger paychecks, increased business investment and lower tax liability. Lower tax rates, higher standard deductions and larger child tax credits have benefited most Americans. According to Treasury’s analysis, in 2017, a typical American household earning $75,000 in pre-tax wages was paying $3,983 in federal income taxes. Each month, $347 was withheld from their paychecks, and they received a $178 refund when they filed their 2017 taxes. In 2018, that typical family earning $75,000 saw their total taxes fall to just $1,739, a tax reduction of $2,244 per family. The tax cut was mostly realized through the nearly $200 per month added to their paychecks. … According to recent data released by H&R Block, their clients saw their taxes decline by 24.9% on average. … Additionally, per the non-partisan Tax Policy Center, about 80% of American taxpayers were estimated to see their federal taxes decline as a result of the tax reforms that we have implemented. This means that more than 140 million American families are likely experiencing federal tax savings because of the TCJA. Americans also saw large wage gains in 2018 as a result of the stimulus to economic activity generated by the TCJA, combined with the Trump administration’s deregulatory activities of the past two years. … [M]ore Americans are working because the TCJA has incentivized industry to invest in the United States. Workforce participation among prime-age workers stands near its highest level in almost a decade, and for the first time since at least 2001, there are more job openings than Americans looking for work. … The American economy is stronger today than it was before the TCJA. Business and consumer optimism has returned. Capital investment is increasing. Americans are returning to the workforce, and consumers have more money in their pockets. Entrepreneurs are once again finding an environment that rewards their creativity and dynamism. President Trump’s economic program is leading to more jobs and higher wages for hardworking Americans. Read the full op-ed here.   ###