House Speaker Paul Ryan said Tuesday that consumer confidence is at a 17-year high, jobless claims are lower than they’ve been in decades and the manufacturing sector is growing at the fastest rate than it has in over a decade, all because of the recent tax reform passed in December, reports CNS News.
“We had some really great news last week spurred on by the new tax reform law. For starters, new data revealed that consumer confidence hit a 17-year high last week. People are optimistic about the future, which encourages more spending, more investment. It’s a sign of a healthy, growing economy,” Ryan told reporters at a House GOP leadership press conference.
“Second of all, Labor Department reported that jobless claims in the United States – the number of people filing for unemployment dropped to its lowest level in almost five decades. Think about that for a second. We saw just last week, the number of people filing for unemployment going to the lowest level in 49 years,” he said.
“People are getting work. Companies are hiring more workers. This is very, very important. Also, U.S. manufacturing is expanding at the fastest rate in nearly 14 years. These are all very encouraging numbers, and it’s undeniable that real people are being helped by the personal tax cuts and the Tax Cut and Jobs Act,” the speaker said.
“To top it all off: two more major companies – Carter’s and Mission Produce – announced it would pass along the benefits of tax reform to its workers,” he said.
Furthermore, Americans took home billions of dollars in bonuses in January, Ryan said.
“Thanks in large part to the bonuses given by hundreds of companies due to tax reform, the Bureau of Economic Analysis estimated that Americans took home an increase of $30 billion alone in January,” the speaker said.
“The agency also estimated that the law reduced personal taxes in January by a rate of $115 billion per year. That’s huge. That is more evidence that paychecks are growing, that take-home pay is bigger, that workers have more for their families,” he said.
Ryan also emphasized the importance of the tax reform bill doubling the child tax credit to $2,000 per child.
“That means moms and dads, often the people who need this relief the most, are going to be helped in a really big way. Take Andy McTague in New Jersey. He told the Ashbury Park Press that he’s going to put this extra money—because of the $2,000 per child tax credit that he now gets in his paycheck—toward his kids’ college tuitions,” the speaker said.
Ryan said the tax reform law is making a difference in people’s lives by helping families save for college, save for the future and putting more money in people’s pockets. Because of the growth in the economy, that means less unemployment and more spending to keep that economy growing.
“And it’s also expanding economic growth to the point where unemployment is now at a 49-year low That is exactly what we were hoping to achieve when we passed this law, and we’re very excited to see those results materialize,” he said.