The Tax Cuts and Jobs Act continues to lift consumers’ and businesses’ spirits when it comes to the future of our economy. That became even clearer this week, with the release of two indicators measuring confidence and economic outlook. This comes on top of lower jobless claims and recent projections for higher wages.
Get the details on how tax reform is boosting economic confidence—which translates into real, positive changes for American workers and their communities:
- 128.7: Consumer confidence climbed to this level in the Conference Board’s monthly index released this week. In the accompanying survey, Americans expressed optimism for economic conditions, including their own incomes, with the number of Americans expecting their incomes to decline falling to the lowest level since December 2000. As the Associated Press noted, “Analysts said the strength in confidence reflects a strong labor market with unemployment at a 17-year low, as well as the impact of the $1.5 trillion in tax cuts approved in December, which began showing up in workers’ paychecks earlier this year.”
- 48: Initial weekly jobless claims fell to 209,000 this week—their lowest point in 48 years. As Speaker Ryan put it yesterday, “This is yet another sign of a healthy job market and a growing economy.”
- 98.5: Leading CEOs expressed the highest level of economic optimism in the 15-year history of Business Roundtable’s Economic Outlook Index. The reading for CEOs who planned to increase hiring jumped 22.8 points from last quarter to 98.5, and they projected increases in their companies’ capital spending. According to BRT CEO Josh Bolten: “Tax reform is already prompting more investment, jobs and increased wages and benefits for American workers.”
- $1.2 trillion: The Congressional Budget Office estimates the Tax Cuts and Jobs Act will grow wages by $1.2 trillion over the next decade. This, paired with newly lowered rates, means more take-home pay for hardworking Americans.
Thanks to the new tax law, our economic future continues to get brighter and brighter.