The Republican tax cuts have enabled small businesses across the whole country to hire and innovate more freely, driving the economy forward significantly, suggests Mark Anthony Jones of The Kansas City Star. The tax reform effectively lowered the top marginal tax rates for a small business from 40% to 30%. This caused a hiring boom that allowed the national unemployment rate to fall to 3.9%, half the rate it was six years ago. All these Americans having jobs has increased economic growth. Often touted as only beneficial to the wealthy, the tax cuts mainly help the middle class, stopping after a business earns more than $315,000.
The GOP’s claim that it is behind the recent surge of the US economy is wrong, asserts Brian Faler of Politico. In particular, the unemployment rate, which recently fell to 3.9%, had been dropping for years and simply continued that trend. This trend is still due to policies enacted before Republicans took the White House. It will take months before their tax reforms have a meaningful effect on US society. Congress’s $400 billion spending increase, which many of the GOP actually opposed, is likely to have a stronger short-term effect. It will take years to truly understand whether this tax reform actually helped the economy.