Since Republicans in Congress and President TrumpDonald TrumpJan. 6 committee chair says panel will issue a 'good number' of additional subpoenas Overnight Defense & National Security — Presented by AM General — Pentagon officials prepare for grilling Biden nominates head of Africa CDC to lead global AIDS response MORE instituted tax reform, the U.S. economy has created nearly 800,000 jobs. Today, unemployment stands at 3.8 percent nationally, lower than full employment, which is generally measured at 4.0 percent.
Americans now enjoy more job openings than there are people unemployed (again, more than the full employment rate). That will drive wages up further, drawing more people back into the workforce, increasing labor force participation, and promoting still faster economic growth.
Who is benefitting? Blue-collar working people, who used to be the backbone of the Democratic Party, before Democrats decided to ditch them for the cooler crowd of Obama’s “rainbow coalition.” African-American unemployment in the Trump economy is at the lowest level since 1972, and Hispanic unemployment is at an all-time low. Only in Democratic strategists’ dreams do voters want to see more illegal immigrants competing for American jobs.
The economic gains are a big reason why Trump Republicans are on the rise, even in hard-core blue California. Democrats are not on track to take out 10 House Republican incumbents in California, and that likely means that Democrats nationally are not going to take back control of the U.S. House in November.
America’s economic recovery actually began on election day 2016, when the revived stock market boom took off, not in the summer of 2009, as Obama’s apologists have claimed. Obama has said he saved America from a depression, but his eight years of less than 2 percent growth, following the worst recession since World War II, was the depression.
Obama and his apologists explained such slow economic growth as “the new normal.” America could never grow faster than 2 percent again, they said, and surely not the 4 percent or more that happened under Presidents Kennedy and Reagan.
But in Trump’s first year, economic growth reached 3 percent — more than 50 percent higher than in Obama’s last year. Now the economy is growing 4 percent, and could hit 5 percent for a period, reflecting a real recovery at last. And the so-called experts said it couldn’t be done.
How did the president and his Republican supporters do it? Trump’s push for deregulation started the recovery in 2017, particularly the deregulation of America’s energy producers. This will help liberate America for not just energy independence, but for energy dominance; we are on track to become the leading producer of oil, natural gas and coal by doing away with stifling regulation imposed by Obama and the Democrats.
Democrats uniformly opposed the tax cuts from tax reform, even though those tax cuts benefited all taxpayers. The establishment Joint Tax Committee reports the rich now pay a higher percentage of federal taxes than before tax reform, and the poor and middle class pay a lower percentage, contrary to the class-envy mantra of Democratic congressional leaders.
Tax reform also cut corporate tax rates from 35 percent to an internationally competitive 21 percent, laying the foundation for new jobs and restored wage growth. Democrats claim this is a giveaway to corporate America and Wall Street, but they ignore studies such as that from Boston University professor Larry Kotlikoff and Berkeley economist Alan Auerbach confirming that 70 to 90 percent of every corporate tax dollar is borne by workers in fewer jobs and lower wages.
Confused congressional Democrats — who apparently don’t understand anything about economic growth, creating jobs and increasing wages — claim that we have yet to see evidence of any of the promises made when tax reform was enacted; Democratic leader Nancy PelosiNancy PelosiManchin cast doubt on deal this week for .5T spending bill Obama says US 'desperately needs' Biden legislation ahead of key votes Congress shows signs of movement on stalled Biden agenda MORE calls it a tax scam and takes part in “Repeal the Trump Tax” town halls.
The Democrats promise to repeal the tax cuts if they are restored to power in the midterm elections. Imagine how they are going to feel when the “basket of deplorables” are joined in the midterms by the blue-collar voters, African-Americans and Hispanics who are benefitting from Trump’s free-market economic policies.
Lewis K. Uhler is founder and chairman of the National Tax Limitation Committee and National Tax Limitation Foundation (NTLF). He was a contemporary and collaborator with President Ronald Reagan and economist Milton Friedman in California and across the country.
Peter J. Ferrara is a senior fellow with the Heartland Institute and NTLF, and teaches economics at King’s College in New York. He served in the White House Office of Policy Development under President Reagan, and as associate deputy U.S. attorney general under President George H.W. Bush.