As Americans filed their taxes this spring, they wrestled for the last time with a system that for decades plundered their paychecks and made American businesses uncompetitive.
The Tax Cuts and Jobs Act signed into law by President Trump in December is already benefiting American families, workers, and companies. The United States will continue to reap the economic benefits generated by tax reform for years to come.
The tax cuts mean a typical family of four earning $75,000 a year with two children will see a tax cut of more than $2,000 in 2018. Tax reform increased take-home pay for millions of workers as the updated withholding tables that were phased in earlier this year have increased regular take-home pay for millions of workers.
Working Americans will see several tax benefits from the new law, including: lower tax rates; a doubling of the child tax credit; and the standard deduction nearly doubled. In addition, the tax penalty from the Obamacare mandate was repealed for individuals.
The benefits also extend to businesses, which now operate under a globally competitive tax system for the first time in decades. Reducing the top statutory federal corporate tax rate from 35 percent to 21 percent, shifting from a worldwide system of taxation to a mostly territorial tax system, and encouraging the immediate expensing of capital expenditures all are allowing companies to invest and grow here in the United States.
For the full opinion piece by Secretary Wilbur Ross, please visit CNBC.com