Trump Administration’s 2017 Tax Cuts and Jobs Act

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Statement from the President on the Tax Cuts and Jobs Act

November 2, 2017 ~ I applaud the House Ways and Means Committee for introducing the Tax Cuts and Jobs Act, which is another important step toward providing massive tax relief for the American people. My tax reform priorities have been the same since day one: bringing tax cuts for hardworking, middle-income Americans; eliminating unfair loopholes and deductions; and slashing business taxes so employers can create jobs, raise wages, and dominate their competition around the world. The policies of my Administration have already helped to drive the stock market to all-time highs and the unemployment rate to a 16-year low. Economic confidence is skyrocketing and our GDP grew 3 percent yet again this quarter.

We are just getting started, and there is much work left to do. The special interests will distort the facts, the lobbyists will try to save their special deals, and some in the media will unfairly report on our efforts. But my Administration will work tirelessly to make good on our promise to the working people who built our Nation and deliver historic tax cuts and reforms — the rocket fuel our economy needs to soar higher than ever before.

The Tax Cuts and Jobs Act is Generating An Economic Resurgence in Communities Across the Country (Fact Sheet)

April 4, 2020

Everywhere we look, we are seeing the effects of the American economic miracle. ~ President Donald J. Trump

REVITALIZING AMERICAN COMMUNITIES: Opportunity Zones are a critical part of President Trump’s efforts to bring economic opportunity to communities that have been left behind.

  • The Tax Cuts and Jobs Act (TCJA) included a new Opportunity Zones incentive designed to bring investment to struggling communities across the country.
  • Under the TCJA, investors can get tax benefits by investing in communities designated as Opportunity Zones.
    • Investors receive tax benefits on capital gains that they reinvest into Opportunity Zones through investment vehicles called Qualified Opportunity Funds.
    • These benefits are structured to promote long-term investment that will help these communities recover and thrive.
  • All States, Territories, and the District of Columbia nominated low-income communities to be designated as Opportunity Zones.
  • 8,762 communities home to nearly 35 million Americans have now been designated.
  • Opportunity Zones will help encourage investors to fund new businesses, develop properties, and finance construction in these struggling communities.

A NEW DAY FOR THE AMERICAN ECONOMY: The TCJA is driving renewed growth and has lifted Americans’ optimism in the economy.

  • For the first time in more than a decade, the economy reached 3 percent growth over the 4 quarters of 2018.
    • Gross Domestic Product (GDP) grew by 3 percent from the fourth quarter of 2017 to the fourth quarter of 2018.
  • American workers and job creators have expressed renewed confidence following the passage of the TCJA and the resurgence of the American economy.
  • Optimism among small businesses and manufacturers soared to record highs last year.
  • Americans’ optimism about their ability to find a good job hit a record high last year, according to a poll by Gallup.

OPEN FOR BUSINESS: The TCJA is bringing money back from overseas and leading to more investment here in America.

  • The TCJA is generating more investment right here America and helping to deliver an economic resurgence in communities across the country.
  • As promised, companies are finally bringing money back from overseas thanks to the TCJA.
    • In 2018, companies repatriated over half a trillion dollars held overseas.
    • Companies repatriated nearly $295 billion in the first quarter of 2018 following the signing of the tax cuts.
  • The TCJA enabled businesses to invest more in their own operations by allowing for capital investments to be immediately written off.
    • Key Federal Reserve indices have suggested over 2018 and the first quarter of 2019 that manufacturers are planning to continue investing in capital going forward.

The Tax Cuts and Jobs Act Is Working

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.

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.

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Remarks by President Trump Celebrating the Six-Month Anniversary of the Tax Cuts and Jobs Act

June 29, 2018 ~ THE PRESIDENT:  Thank you very much, everybody.  The economy is indeed doing well.  (Applause.)  Six months ago, we unleashed an economic miracle by signing the biggest tax cuts and reforms — I have to add the word “reform.”  Very important word.  But the tax cuts is what got us there, and that’s what’s really doing it.  The biggest tax cuts in American history.

Now it’s my great honor to welcome you back to the White House to celebrate six months of new jobs, bigger paychecks, and keeping more of your hard-earned money where it belongs, in your pocket or wherever else you want to spend it.  (Applause.)

Before going any further, I’d like to address the horrific shooting that took place yesterday at Capital Gazette newsroom in Annapolis, Maryland.  This attack shocked the conscience of our nation, and filled our hearts with grief.

Journalists, like all Americans, should be free from the fear of being violently attacked while doing their job.  To the families of the victims: There are no words to express our sorrow for your loss.  Horrible, horrible event.  Horrible thing happened.  On your suffering, we pledge our eternal support.  The suffering is so great.  I’ve seen some of the people. So great. My government will not rest until we have done everything in our power to reduce violent crime and to protect innocent life.  We will not ever leave your side.  So our warmest, best wishes and regrets.  Horrific, horrible thing. Thank you. Thank you. (Applause.)

For today’s event, we’re honored to be joined by our great Vice President, Mike Pence. Stand up, Mike. (Applause.) Also joining us are Secretary Steven Mnuchin, who’s been keeping very busy lately.  Steve. (Applause.) Secretary Wilbur Ross.  Wilbur.  (Applause.)  Secretary Alex Acosta. Just came up with a great healthcare plan. (Applause.) Thank you, Alex. Great healthcare plan.  People are really liking it. Association.  Sonny Perdue, the great Secretary of Agriculture. (Applause.) Small Business Administrator Linda McMahon. Doing an incredible job. (Applause.) Director Mick Mulvaney. (Applause.) And Treasurer Jovita Carranza. Jovita. Jovita. Thank you. (Applause.)

Thanks also to a really great friend of mine, Mississippi Governor Phil Bryant, and all of the other state, local, federal official that have done so much to help us with this incredible tac cut and job plan.  You see how it’s working.  (Applause.)  Although, I have to say, I think the cutting of regulations maybe had just as big an impact.  (Applause.)  I don’t want to say this to you, but I think the cutting of regulations had just as big an impact.

I also want to welcome Juanita Duggan, Kay Coles James, Karen Kerrigan, and Michael Bellaman for helping us.  (Applause.)  Your support has been incredible in getting this very difficult legislation to the finish line and passed.  Please stand up.  Stand up.  What a team.  Great team.  (Applause.)  Great team.  Thank you very much.

And there are so many others in the room.  You know, you’re never going to speak to me again.  (Laughter.)  But we’re not going to give any more names.  Right?  Let’s get down to business.  (Laughter.)  Other than these names, who are the important ones?  Okay?

We’re also especially proud of the Republican members of Congress who fought — I mean, they fought with us.  They — we didn’t get a Democrat vote.  We didn’t get one vote for these massive tax cuts.  So I want to thank Roger Wicker, Representative Diane Black, Kevin Brady — what a warrior.  Kevin.  Kevin, come on.  Stand up, Kevin.  Come on.  (Applause.) Mike Kelly, my friend.  And Jason Smith.

Our great Republican members of Congress worked night and day to score this landmark victory.  This really was a landmark victory for their constituents, but much more importantly, for the country.  Unfortunately, every single Democrat in the House and Senate — that’s right, every one single one — voted against lower taxes for the hardworking Americans.  And you see what’s happened.  It’s turned out to be something very special.

The Tax Cuts and Jobs Act slashed income taxes all across the board.  We nearly doubled the standard deduction and did double the child tax credit — (applause) — which Ivanka wanted very much, I will tell you.  Stand up, Ivanka.  Stand up, honey.  (Applause.)  Whoa.  She got a bigger hand than the politicians.  (Laughter.)  You better be careful.  That means you’re all in trouble.

The typical family of four earning $75,000 will see an income tax cut of more than $2,000 — and, in some cases, more —  (applause) — slashing their tax bill in half.

We cut taxes for businesses of all sizes to make this the best place on Earth to start a business, to invest.  We have billions and billions of dollars of additional revenue coming in.  We lowered the corporate tax rate so the American worker finally has a level playing field.  We allowed companies to deduct every single penny of investment in new equipment.  And it’s called expensing.  It’s the biggest secret in the plan.  I think it’ll go down as maybe the most important element.  It’s one-year expensing.  Nobody thought we’d ever see that.  So incredible for starting up a business or running a business.

We greatly reduced the burden of the unfair estate tax, commonly known as the “death tax.”  You know, that’s such a big thing.  And most farms and most small business will not pay any estate tax or death tax anymore.  (Applause.)  Such a big thing.

We created opportunity zones to promote more jobs in low-income communities.  We opened ANWR — that’s a big one.  We opened up ANWR.  (Applause.)  That was one that they said no President could get it for many years.  I wasn’t going to do it because I was angry at someone.  I said I’m not going to do it.  And then when I heard Ronald Reagan couldn’t do, nobody could do it, they had been trying for 50 years — I said, oh, let’s do that immediately.  (Laughter.)  It’s like a challenge, right?  (Applause.)  A challenge.  And they’ve started that process.  It’s going to be something — one of the biggest in the world.

We also repealed, in our tax cut plan, we repealed the most, I guess you could say, unpopular thing I’ve seen in a long time in politics, or in legislation: the individual mandate on Obamacare.  (Applause.)  The individual mandate.  How about that one?  That’s not a very good one.  That’s where you have the privilege of paying a fortune in order to not pay to have bad healthcare.  (Laughter.)  Think of that.  So, in other words, you pay a lot of money not to have healthcare.  So it’s not working too good.  We got rid of it.  That’s a big thing.  We got no credit, but that’s okay.  (Applause.)  That’s okay.  I’ve had some people come up to me — they say they like that as much as the tax cuts.  That was a big thing.

And Obamacare is just about over.  We have come up with so many plans.  And we have a plan coming out — an additional plan, Secretary Azar — coming out in a very short period of time, which is going to be — I think it’s going to perhaps match your plan from Department of Labor.  It’s going to be something very special.

Six months after our tax cuts, more than 6 million workers have received bonuses, pay raises, and retirement account contributions.  (Applause.)  And one of the beautiful elements of what I do — I love to see happy faces — but I’ll stand on line sometimes before or after a speech, and I’ll be with a lot of people that want pictures; for whatever reason, they want a picture of me.  (Laughter.)

And I stand with the police a lot, and I’ll see a policeman, and in particular, one in New York City.  And he said, “Sir, I want to thank you.  You’ve made me a hero to my wife and to my family.  I’ve always been a horrible investor.  But this year, my 401(k)” — think of it — “is up like 46 percent,” I think he said.  “My wife thinks I’m a genius.  She thinks I’m the greatest investor for the first time in my life.”  (Applause.)

And, you know, in terms of value or worth, we’ve created $7 trillion worth of value for our country.  And people don’t know this: We’re double the size — almost double the size.  Because we hear China — and China is terrific and our relationship is terrific.  We’re straightening out the balance, and I think most people want to see that.

But we’re the largest economy in the world, by far.  And as you know, we’ve increased a lot over the last one and a half years.  But we’re almost the double the size of China and far bigger than anybody else.  And we’re going up very rapidly.  And it’s going to continue to go up very rapidly.  (Applause.)  Biggest in the world, by far.  Think of that.  We are the biggest — did you know that?  The biggest economy in the world, by far.  That’s the only way to do it, right?  Good.  It really is.  It’s pretty good.  And they helped us a little bit.  Right?  Just a little bit.  That’s okay.  Every little bit counts.

So the share of small businesses raising benefits and pay has just set a new all-time record, and manufacturing optimism — to me is so important, because it’s all about optimism — is the highest ever recorded.  (Applause.)  This is a statistic that’s been around for a long time.  Highest ever recorded.  Hundreds of billions of dollars are coming back from overseas.  Over $300 billion was just repatriated into our country in the first quarter alone.  Think of that: $300 billion.  (Applause.)  Money we never would have seen.  Trillions more dollars are on their way back.

And as you know, Apple announced they’re going to spend $350 billion — not million.  I would have been happy with that too.  (Laughter.)  But $350 billion is being brought back.  I guess the total amount they’re bringing back is approximately $230 billion, and they’re putting up the rest the old-fashioned way.  They’re bringing this money back.  It would never have come back.  They’re going to build an incredible campus and lots of other things.

We just left Wisconsin, and what Foxconn is building up in Wisconsin is literally — and I said it — the Eighth Wonder of the World.  It’s incredible what they’re doing.  Fifteen-thousand jobs.  It’s going to cost $15 billion.  It is something that is so incredible you have to go see it.  Nobody would believe what’s happening.

More than 100 utility companies have lowered prices as a direct result of our business tax cuts, saving Americans $3 billion on their utility bills.  Utility bills are going down.

Unemployment claims are at a 44-year low.  (Applause.)  That’s a good one.  Forty-four years.  Something I am so proud of — I love it.  Unemployment for African Americans is at the lowest level in the history of our country.  (Applause.)  Okay?  I’m looking at Kevin — that was a good job.  You were right about that, Kevin — huh?  (Laughter.)  That was a — that is something.  We were all right.  Everybody in this room was right.

And I have to say, unemployment for Hispanic Americans, likewise, is at the lowest point in the history of our country.  (Applause.)  Unemployment for women — and now, if you listened to my speech two weeks ago, you would have heard me say is the lowest in 21 years.  Now I’m saying it’s the lowest in 65 years and soon will be the lowest in history.  (Applause.)  Big difference — 21 years, 65 years.  Hopefully, in a week or two it will be “history.”  We’re close to history.  Sixty-five years is a long time.

I’m also very proud to say that unemployment for the disabled Americans has reached record lows, giving these incredible Americans the chance to realize their unlimited potential.  And that’s what it is: unlimited potential.  (Applause.)

Many former inmates are also getting a second chance at life.  We are keeping our promise to buy American and hire American.  And what’s happening is our economy is so good, our unemployment is so low, and our employment is so high — maybe that’s an even nicer way of saying.  And people that want to get a second chance — inmates, people coming out of jail, where the stigma was so great, people weren’t hiring.  Businesses weren’t hiring.  They’re hiring them now in record numbers.  And you know what?  These businesses are saying they are fantastic.  They’re set.

And there’s one gentleman in particular.  He hired 10 inmates.  Never did it before.  And he said — I wouldn’t say he said all of them — but he said seven of them are so incredible.  That’s not a bad percentage.  I think that’s a better percentage than we have.  (Laughter.)  He said seven of them are as good as he’s ever had, and he’s going to do a lot more of it.  So there’s nothing like a great economy to solve that problem, Jared.  Right?  (Applause.)  And, Chris — thank you very much, Chris.  (Applause.)

But this is all because we’re one country and, really, one family.  And we salute one great and beautiful American flag.  We love that flag.  (Applause.)

And at last, our country finally has a tax system that is pro-jobs, pro-worker, pro-family, and pro-American.  (Applause.)

So, one incredible citizen who has benefitted from our Tax Cuts and Job Act is LaSonya Hill.  I love that name, LaSonya.  (Laughter.)  If I have another daughter, I think I’m going to name her — (laughter) — is that okay?  Can I copy it?  I like that name.  Of Jacksonville, Florida.  Great place.  I know it well.

LaSonya is the director at customer care at Crowley Marine [Maritime].  Following the Tax Cuts and Jobs Act, Crowley was able to pay employees like LaSonya a big tax cut bonus.  They took a lot of money, and they gave it around to the employees.  That bonus will help support the education of her two sons, Cameron and Christian.  (Applause.)  Pretty good, right?  Pretty good.

So, we’re so happy for your family, and I know your sons are going to make you very proud.  They’re great young men.  And, LaSonya, please, would you say a few words?  Please.  (Applause.)

HILL:  Thank you, Mr. President, for the invite.  It’s an honor to be here today.  As you said, Crowley Maritime was able to benefit from the tax reform by paying employees bonuses.  And in return, my family, we were able to invest in our children’s education.  (Applause.)  My son, Cameron, he will be entering into his senior year at Morehouse College in Atlanta, Georgia.  (Applause.)  And my youngest, Christian Hill, he will be entering into his freshman year at Savannah State, both in the fall.  (Applause.)

So because of this, Crowley Maritime is a fantastic company.  I’ve been there 24 years.  I’m very honored to work for such a great company, and for the company to benefit from such a great tax opportunity in which they were able to give back to the employees.

And so I want to thank not only Mr. President for allowing us the opportunity to tell our story, but also Crowley as a company that I’ve been with for so long throughout my career.  So thank you again.  (Applause.)

THE PRESIDENT:  Thank you.  Good job.  And, by the way, she got the biggest, by far — (laughter) — including you, Ivanka, and including all of my political geniuses out here.  Great job.  It’s like you’re a professional speaker.  Very good.

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