It has been just six months and the nation is already feeling the positive effects of pro-growth tax reform.
Americans are seeing the fastest wage gains in the private sector in a decade. We are seeing the fastest growth in capital expenditures since 2011, the unemployment rate is historically low at 3.8 percent, business optimism is through the roof, and consumer confidence is high.
The positive effects are even impacting families in our own backyard. A typical family of four in the 5th Congressional District of South Carolina will see a tax cut of more than $2,000. In the meantime, House Minority Leader Nancy Pelosi, D-Calif., is still calling these tax cuts “crumbs.” It is evident that this tax bill has real benefits for South Carolina families, and these so-called “crumbs” can actually be the bread of life for many.
Not one Democrat voted in favor of tax reform. They actually want to raise taxes if they win in November.
But some congressional Democrats aren’t falling in line with Pelosi. Even some in leadership positions such as Rep. Keith Ellison, D-Minn., are saying things like “I would not describe it as crumbs. … If you could pick up 1,000 or 900 bucks, maybe it helps.” Or how about Rep. Ben Ray Lujan, D-N.M., saying, “anything makes a difference.” My personal favorite, though, is Rep. John Yarmuth, D-Ky., who said, “I wouldn’t say a couple thousand dollars a year is ‘crumbs’.”
Which is it?
While the evidence clearly indicates the widespread benefits of tax reform now and down the road, work to improve our nation’s tax code remains unfinished. The capital gains tax still remains above 23 percent, a high rate which deters capital investment, and the individual tax cuts are set to expire after 2025. I will be working hard to ensure that these provisions, among others, are fixed.
Mainly, we must make these tax cuts permanent for individuals. In fact, in a recent survey I sent to more than 70,000 constituents last month, an overwhelming 96 percent agreed. While we must work to make these cuts permanent for everyone, we should at least start with those who deserve it most — the men and women of our armed forces. This is why I introduced the Permanently Amending Tax Cuts for our Heroes Act.
Multiple aspects of the tax bill already make permanent provisions for our troops, but the PATCH Act would go further by making permanent:
- Modified Tax Brackets and Lower Rates
- Increased Standard Deduction
- Expanded Child Tax Credit
- Increased Charitable Deduction Limits
Our troops have sacrificed so much and put their lives on the line to ensure we enjoy our day-to-day liberties. We must remember to uphold our troops all the time.
That is why I am so honored to introduce the PATCH Act to provide tax relief for those in uniform.
With so many positive effects coming from tax reform, now is the time to act to make sure these changes are here to stay.
Rep. Ralph Norman, a Republican, represents South Carolina’s 5th Congressional District. He serves on the House Small Business Committee and the House Committee on Science, Space, and Technology.
