Tax directors from Business Roundtable member companies flew into Washington last week for dozens of meetings with Members of Congress and staff. Discussions focused on why policymakers should extend and strengthen the 2017 Tax Cuts and Jobs Act (TCJA).
During the meetings, tax directors emphasized how the 21% corporate tax rate helped businesses create jobs and increase wages — contributing to record-low unemployment and higher household incomes.
Five Ways TCJA Is Working for America:
- Job Creation and Economic Growth
Following the 2017 tax reforms, over 500,000 new U.S. jobs were created due to increased domestic activity by U.S.-based multinational companies. - Higher Wages and Household Incomes
American workers saw higher salaries and increased take-home pay as companies boosted their workers’ wages. Following TCJA, real median household income increased by over $6,000 in just two years. - Surge in Domestic Investment
Tax reforms encouraged businesses to invest more in the U.S., leading to a 20% increase in domestic capital expenditures. - Historic Repatriation of U.S. Earnings
With a more competitive tax system, companies brought back $2.5 trillion in international earnings to reinvest in American workers, facilities and research and development. - Broad-Based Economic Gains and Lower Unemployment
TCJA helped drive the 4.9% lowest recorded unemployment rate for adults without a high school diploma and led to a 40% higher growth in incomes for the lowest 10% of earners compared to those at the top.
Business Roundtable urges Congress to extend and strengthen TCJA.