Business is booming. Companies are hiring. Americans’ incomes are rising. These goals were exactly what Finance Committee Chairman Orrin Hatch (R-Utah) hoped to achieve when crafting a tax bill that provides tax relief to American workers, overhauls the business side of the tax code, shifts to a competitive territorial tax system, and provides tax relief for Main Street businesses. The latest economic indicators show that less than a quarter into the new tax code, tax reform is working. Take a look at the numbers:
U.S. Manufacturing is expanding at the fastest pace in nearly 14 years
* American factories grew at the fastest rate in February since May 2004, showing continued strength in manufacturing, according to new figures from the Institute for Supply Management.
* This strength is translating to more jobs: manufacturers also saw the largest month-to-month gain in employment in more than two years.
Jobless claims fell to the lowest level since 1969
* Initial U.S. jobless claims fell to the lowest levels in nearly 50 years, which reflects the strongest labor market in almost two decades.
* Further, the unemployment rate is at a 17-year low of 4.1 percent and companies are still looking to fill millions of jobs.
Americans have more money to spend
* Americans’ disposable income was up 0.6 percent in January, the largest month-to-month gain since April 2015. This number reflects $30 billion in tax reform bonuses and a $115.5 billion drop in individual taxes.
Small businesses are optimistic
* A record number of small business owners are saying “now is a good time to expand," according to the National Federation of Independent Business (NFIB) January report.
* The NFIB report also found that actual earnings rose 11 points in December, the highest reported since 1988.
Source: Ranking Member’s News
