ICYMI: Economic progress, thanks to tax reform
Economic progress, thanks to tax reform
At the end of 2017, the Tax Cuts & Jobs Act was signed into law. This historic re-write of our outdated tax code was met with derision by some, but the truth is that tax reform is working. Across the country, more than 370 companies have announced new investments in their employees and their communities. It’s no different here in Michigan with families benefiting from higher paychecks and lower energy bills and companies large and small announcing critical bonuses, wage increases, and investments thanks to tax reform.
When we started this process, we promised a focus on the middle-class and we’re delivering on that promise. Michigan middle-class families are seeing the positive effects thanks to tax reform with more take-home pay in their paychecks each month. The U.S. Treasury Department reports that upwards of 90 percent of workers will see in increase in take-home pay, reflecting the lower rates, larger standard deduction, and doubled Child Tax Credit enacted in the bill.
Michigan businesses are using tax reform to reward workers and invest in our communities. Down in Niles, I recently visited the folks at Shelton’s Farm Market. They’re doling out bonuses for all 80 of their employees and their leadership team and told me that they’re feeling more optimistic than ever about the future of their business thanks to tax reform.
I also recently attended a groundbreaking ceremony at Pfizer – one of our largest employers here in Southwest Michigan – in Portage. In meeting with employees and executives last year they told me directly that if we passed pro-growth tax reform it would mean they could expand and invest in their employees and our state. The groundbreaking was for a state-of-the-art facility that means more than 200 new high-skilled, high-wage jobs and a stronger economy for our region. They also recently announced $100 million in bonuses for all non-executive employees. All this thanks to tax reform.
We also saw the big news that Fiat-Chrysler announced they were investing more than $1 billion to modernize a plant in Michigan, providing bonuses for employees, and adding 2,500 jobs and moving some truck production back from Mexico. For generations, Michiganders saw headlines about these types of jobs moving out of our state. Now they’re coming back. Thanks to tax reform.
Consumers are also seeing lower energy costs thanks to tax reform. Shortly after the bill was enacted, the Michigan Public Service Commission ordered all 13 rate-regulated utilities in Michigan to report to MPSC on how their savings from the new tax law will benefit Michigan ratepayers. With more to come, several utilities, such as DTE Energy, have publicly announced their plans to pass on their savings to families in Michigan – thanks to tax reform.
There’s more news like this that comes out seemingly every day. Building confidence, growing our economy, creating Michigan jobs, and helping our middle-class. And it’s all thanks to tax reform.