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January 5, 2018

Trump Effect vs. Democrat Rhetoric

Democrats’ doom and gloom warnings against Republican tax cuts simply don’t reflect reality.

Back in early December, House Minority Leader Nancy Pelosi (D-CA) warned that the GOP’s tax bill would usher in catastrophe on a global scale. She literally declared, “It is the end of the world!… This is Armageddon!” We’re not sure what version of the Bible Pelosi has been reading, because the “Armageddon” that Republican tax reform has unleashed doesn’t look anything like “the end of the world.” Quite the contrary. As we noted the day the tax legislation was finalized, several companies began rewarding employees with large bonuses and increased hourly pay. And that trend has only continued.

American and Southwest Airlines announced Tuesday that they would be giving employees bonuses of $1,000 each. Southwest also stated that it would be ordering more jets from Boeing. Several banks have gotten on board the “Armageddon” train, with U.S. Bank announcing $1,000 bonuses for upwards of 60,000 employees and a hike to its minimum wage to $15 per hour. U.S. Bancorp president Andy Cecere said, “We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers.”

And insurance company Aflac announced on Tuesday that it would increase its investment in its U.S. employees and operations by $250 million over the next three years. Aflac will increase its 401(k) match contribution to employees’ first 4% from 50% up to 100%. Aaon Inc. also announced $1,000 bonuses for all employees. And these companies represent just a fraction of the real positive effect the Republican Tax Cuts and Jobs Act has had on business and their employees. Here is a fuller list. Even The New York Times has acknowledged the Trump effect on the American economy, which tax reform is sure to accelerate.

But after nearly a decade of Americans suffering under a stagnant economy, minimal job growth and lower wages, Pelosi and her fellow Democrats are working to frame the Republican/Trump tax cuts as bad for the country? Because keeping more of your hard-earned money will lead to the “end of the world” or something? Please. The only ones for whom tax cuts may prove to be Armageddon are Democrats and their income redistribution schemes. Here in “flyover country,” the Tax Cuts and Jobs Act is a good thing for working class Americans, who are sure to experience its real financial benefits. Most people value real money over empty rhetoric.

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