Press Release - President Donald J. Trump's "American Model" Economy

TAX CUTS AND REFORM: President Donald J. Trump has delivered comprehensive tax cuts and reform to the American people, providing taxpayers and businesses with the tax relief they need.

• President Trump has provided $5.5 trillion in total tax cuts to the economy, with more than $3 trillion of these cuts going to hard-working American families. The new law also includes $4 trillion in tax reforms through eliminating tax breaks and loopholes that primarily benefited wealthy taxpayers and multinational corporations.
  • The Council of Economic Advisers estimates that annual income for American households will increase in the long-run, on average, by $4,000.
  • The standard deduction will nearly double so that the first $24,000 earned by a married couple will be tax free.
  • Middle-income families will be taken out of the Alternative Minimum Tax.
  • The Child Tax Credit has doubled to $2,000 for each child under the age of 17.
    • The full credit will be available to single-income homes with incomes of up to $200,000 and to dual-income homes with incomes of up to $400,000.
    • The refundable portion of the credit has increased from $1,000 per child to $1,400 per child, which means bigger refunds will be paid to many lower- and middle-income families who don't have enough tax liability to offset the credit.
  • Obamacare's burdensome individual mandate has been repealed, providing immediate financial relief to Americans.
• By reducing the top Federal corporate tax rate from 35 to 21 percent, American businesses will keep more capital and jobs here in the United States.
  • The significantly lower tax rate enables businesses to create jobs, boost wages, and invest in their workforce and business.
  • S corporations, sole proprietors, and other "pass-through" businesses will also see significant tax relief, in that they will be able to deduct 20 percent of their business income.
  • Businesses will be able to deduct 100 percent of the cost of their capital investments in the year the investment is made for the next five years.
  • Important reforms will bring trillions of dollars of wealth back home to America.
    • The switch from our current worldwide system to a territorial system will end the penalty imposed on companies headquartered in the United States.
    • A one-time repatriation tax will be imposed on income that has already accumulated overseas, ending the incentive to keep the money offshore.

EARLY BENEFITS FROM TAX CUTS: Across the country, companies are using President Trump's tax cuts to invest in American workers with bonuses, higher wages, and better benefits.

• More than 250 companies across the country have announced bonuses, pay raises, higher retirement plan contributions, or other investments in their business or workforce. More than 3 million American workers have already benefited from a "Trump Bonus" or "Trump Pay Raise," thanks to the Tax Cuts and Jobs Act.
• Some of America's most prominent companies - including Walmart, AT&T, Disney, Starbucks, and Apple - have announced their intention to distribute some of the benefits of the Tax Cuts and Jobs Act back to their employees.
  • AT&T plans to increase U.S. capital spending by $1 billion and provide a $1,000 special bonus to 200,000 U.S. employees.
  • American Airlines stated that "the positive impacts of this historic tax reform" drove its decision to issue a $1,000 bonus to thousands of its employees, representing a total distribution of nearly $130 million.
  • Disney cited tax reform as the impetus for a $1,000 cash bonus to 125,000 employees, as well as a $50 million investment in employee education.
  • Walmart has credited tax reform with "[giving] us the opportunity to be more competitive globally," raising starting wages, expanding parental leave, and giving many employees a bonus of up to $1,000. The combined wage and benefit changes will benefit the company's more than one million hourly associates in the United States.

REGULATORY REDUCTION: The Trump Administration is keeping its promise to cut unnecessary regulations, saving our Nation billions of dollars.

• The Trump Administration is eliminating overregulation at a record pace, with Federal agencies issuing 22 deregulatory actions for every 1 new regulatory action.
  • In total, the Federal Government issued 67 deregulatory actions for FY 2017, creating only 3 new regulatory actions.
  • Over 1,500 planned regulatory actions have been withdrawn or delayed.
• For FY 2018, Federal agencies have committed to cutting over $9 billion in lifetime costs, and for every 1 new regulation, at least 3 deregulatory actions will be instituted.
• President Trump has signed 15 Congressional Review Act resolutions - more than any other president - taking personal, direct action to reduce the burden of regulations on hardworking Americans.

JUMPSTARTING THE ECONOMY: The Trump Administration's "American Model" of pro-growth, pro-business policies has already produced results for the American people.

• The Dow Jones Industrial Average has closed at record highs more than 70 times under the Trump Administration, including a close at over 26,000 points for the first time in history.
• In 2017, the American economy experienced GDP growth of over 3 percent for two quarters in a row.
• More than 2 million new jobs were created during President Trump's first year in office.
  • The manufacturing industry created nearly 200,000 jobs in 2017, after thousands were lost in 2016.
• The unemployment rate is at one of its lowest points in 16 years, with African American and Hispanic unemployment rates at their lowest recorded points.