Republican record on economy proves party is choice for jobs

Just days ahead of the midterm elections, the contrast between the two political parties on taxes is as clear as ever. The Democrats are running on an agenda of higher taxes and bigger government. They have frequently promised to erode or outright repeal the tax cuts that have led to our thriving economy under President Trump and the Republicans in Congress. Just this week, House Budget Committee ranking member John Yarmuth said that the Democrats will raise the corporate rate if they win the House. Senate Democrats have already proposed $1 trillion in tax hikes, including income tax increases on families and businesses.

Many candidates on the left want to go further and are proposing massive tax increases to pay for vast new federal government programs. For instance, 150 Democrats in the House and Senate and many more running for office are pushing single payer health care, a dramatic expansion of government that will require trillions of dollars in tax hikes every year. As a candidate for president in 2016, Bernie Sanders unveiled a single payer health care plan with a 6.2 percent payroll tax on every business totaling more than $10 trillion in additional taxes and a 2.2 percent payroll tax on families and individuals totaling $2 trillion over the next decade.

{mosads}Even as the Democrats push higher taxes, the success of the Republican tax cut legislation is clear. Tax reform lowered our corporate rate from 35 percent to 21 percent and updated the international system of taxation so that American businesses finally have a more level playing field. Because of these effective policies, the United States has been named the most competitive economy in the world for the first time in years.

Thanks to these tax cuts pushed by President Trump, our economy expanded at a rate of 3.5 percent in the third quarter of 2018 and is on track for the strongest growth in 13 years. This success stands in stark contrast to the 1.9 percent growth rate experienced under President Obama. Wage growth is up, with lower income earners seeing especially strong growth. The labor market is strong with job openings are at a record high and more Americans are voluntarily quitting their jobs for better ones than ever before. The unemployment rate is down to the lowest level since 1969, while the rates for demographics including women, African Americans, and Hispanics are also at record lows.

Small business optimism is at the highest level in 45 years, with owners reporting more investment and spending. Similarly, manufacturer optimism has hit a record high in the past year. Because of tax reform, businesses are giving their employees raises, putting money in education and adoption programs, hiring more workers, and increasing retirement benefits, while utility companies are reducing rates across the nation.

In addition to worker benefits, Americans now have higher wages. At least 90 percent of wage earners are enjoying more dollars in take home pay because of tax reform. This year, the typical individual will save an average of $1,400, while a married couple with two children will save an average of $2,900. Over the next decade, an individual will take home an additional $26,000, while a family of four will see almost $45,000 more in pay after taxes, according to research by the Heritage Foundation. Even as the Democrats promote ideas that will erode these benefits, the Republicans have been hard at work building on continued success of tax reform.

The House has already passed a second round of tax cuts. This package of legislation promotes individual saving through the expansion retirement and education accounts as well as the creation of a universal savings account, promotes entrepreneurship, and strengthens the small business and individual tax cuts already in place. President Trump has even said he wants more tax relief focused on an additional 10 percent tax cut for the middle class. When it comes to jobs and the economy, the Republicans have a clear record. The tax cuts passed by the party have led to a strong economy, higher wages, and more jobs. The Democrats are running to erase these gains in place of increased taxes and bigger government.

Grover Norquist is the founder and president of Americans for Tax Reform. Alex Hendrie is the director of tax policy with Americans for Tax Reform.