(202) 224-4515 Katie Niederee, Julia Lawless
Business is Booming, Companies are Hiring, Incomes are Rising
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.
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