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Economy

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The national unemployment rate sits at 3.9%.  This is down 0.2% from December 2017.  Unemployment levels have been at the lowest levels since 1969, and almost 2.3 million jobs were created in 2018.

Since the Tax Cuts and Jobs Act (TCJA) was signed into law (Dec. 2017), Gross Domestic Product (GDP) growth averaged at 1.6% in 2016, and 2.2% in 2017. Through 2018, GDP growth averaged 3.3%.

At the end of 2018, the average hourly earnings of rank-and-file workers rose 3.2%, the fastest rate since 2009, and inflation has remained consistently low.

The Tax Foundation projects that the TCJA will result in GDP that is 1.7% larger, 1.5% higher wages, a 4.8% larger supply of capital, the equivalent of 339,000 additional jobs.

While TCJA is evenhanded by lowering taxes for all income groups, during the time that TCJA provisions affecting individuals are in effect, the new and lower overall tax burden will be borne more heavily by taxpayers with incomes greater than $1 million.

  • For example, The Joint Committee on Taxation (JCT) estimated that in 2019, taxpayers with incomes over $1 million will pay 19.8 percent of all federal taxes, compared to 19.3 percent without TCJA. Conversely, under TCJA, taxpayers with less than $50,000 in income will see their share of federal taxes in 2019 fall from 4.4 percent to 4.1 percent.12 JCT also noted that in 2019, Americans with incomes less than $50,000 will enjoy the largest percentage cut in their taxes.

Economy at a glance: https://www.bea.gov/news/glance






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