Tipsheet

Armageddon: As Democrats Demand Repeal, CBO Boosts Post-Tax Reform US Job Growth Projections by 2.6 Million

Guy Benson
Guy Benson  |  April 17, 2018 10:30 AM

Much was made last week about the Congressional Budget Office's scary updated deficit forecasts, which many on the Left used as a cudgel to batter the new tax reform law as fiscally reckless.  I've addressed the deficits and debt angle regarding the tax cuts here and here -- making the case that our growing red ink crisis is overwhelmingly attributable to a spending problem, not a revenue shortfall.  In any case, here's some news out of the latest CBO report that Democrats, quite unlike Republicans, won't be so eager to tout:

The Congressional Budget Office (CBO) now projects 156.8 million jobs in America by year-end 2027—2.6 million more jobs than in its June 2017 Budget and Economic Outlook. CBO attributes an average of 1.1 million additional jobs over the next 10 years to the recently enacted Tax Cuts and Jobs Act.

Between the across-the-board tax cuts benefiting the massive majority of US taxpayers and this good news from CBO, it would appear that the "Tax Cuts and Jobs Act" was aptly named.  And as a reminder, the job creation side of the reform package is largely thanks to the corporate tax cuts -- which liberals have demagogued, despite their economic wisdom.  Recall that Democrats, all of whom joined in lockstep opposition to the bill, are vowing to repeal this tangible progress.  More than 500 US companies have rolled out new benefits, bonuses and wage increases as a direct result of tax reform, helping more than four million US workers.  Here's the latest example of good news that Democrats are eager to cancel:

Kroger announced Monday new investments in employee benefits, education and wages as retailers across the board are spending more on their employees to keep pace in a tighter labor market. Last week, Kroger said it planned to hire for 11,000 new positions, including 2,000 management roles. At that time, it said would invest $500 million in associate wages and training and development over the next three years. The grocer has attributed the investments to more funds as result of recent tax law changes. Among the new initiatives, Kroger is introducing a Feed Your Future program to support continuing education for all part-time and full-time associates following six months of employment.

As part of the program, Kroger will offer up to $3,500 annually ($21,000 over the course of employment) to support educational advancements like high school equivalency exams, professional certifications and advanced degrees...It is also increasing the company match for its 401(k) program to 5 percent, up from 4 percent previously. It is expanding its employee discount program for associate shopping in its stores. It is investing $5 million more into its Helping Hands program, an internal fund to aid associates during hardship.

Meanwhile, the president was in Florida yesterday to promote the tax law, alongside Sen. Marco Rubio.  Trump touted its benefits, with Rubio talking up the increased child tax credit that he worked to secure in the bill.  As we've seen at other similar events, attendees expressed gratitude for tax reform's positive impacts on their families' bottom lines.  As elite Democrats sniff at "crumbs," more and more working people are very pleased with their improved financial standing.  Here's video of the full panel, courtesy of the White House:

I'll leave you with Senate Majority Leader Mitch McConnell cheering on the strong economic trends buoyed by tax reform -- which many Republicans see as perhaps their strongest asset in a challenging midterm horse race: