You wouldn’t know it from reading the news, but even according to an analysis from a known opponent to the legislation, 8 in 10 Americans will pay lower taxes next year under the tax plan recently signed into law. This will mean more money in the pockets of everyday Americans to spend, save or invest as they see fit.
This reality is in stark contrast to the mischaracterization that the Tax Relief and Jobs Act is nothing more than a tax cut for the wealthy.
For our growing Latino community, there is much to like in this historic tax reform package. For one, the legislation promises to boost job creation and grow the economy, providing greater opportunities for a brighter future. History tells us that this is no empty promise.
In the years following tax relief in 1964, 1981 and 2003, this is precisely what happened. Among the most impressive numbers are the 9.3 million jobs that were created following President John F. Kennedy’s historic tax overhaul in 1964, and the $2,524 increase in per-person disposable income after President George W. Bush’s tax relief package in 2003.
That’s real money for most Americans.
In fact, there’s already evidence that this latest tax relief could spur this type of economic growth. Shortly after the bill passed, AT&T, Wells Fargo, Fifth Third Bancorp and Comcast all announced plans to increase wages or pay bonuses to their employees. Numerous other companies have followed in the days since then.
If this trend continues, the Latino unemployment rate – already at a historic low – could drop even more. That’s music to the ears of Latinos who told pollsters in the months prior to the 2016 presidential election that jobs and the economy were among the most important issues for our community.
Another reason why the Hispanic community should support the tax plan is that most of us will see a lower tax bill. The new tax plan offers Latino families much needed relief by allowing us to keep more of our hard-earned paychecks, and allows us to put more money back into our pockets to spend on what’s important to us. It could mean paying off bills, or making improvements to the house or apartment, or investing in our children’s education.
Those who opposed the bill and the lower taxes it promised, claimed it would increase taxes for ordinary Americans. But the truth is, about the only taxpayers who will see an increase in their taxes next year are the affluent living in high-tax states like New York and California. That’s because the bill narrowed an unfair carve-out in the tax code — the state and local income deduction — that forced low-tax states to subsidize high-tax states.
And while corporations will also benefit from tax relief, it’s critical that we allow American companies to become globally competitive, rather than burdening them with a tax code that hinders their success. Doing so will allow American businesses to save more of their money, expand their businesses, hire more workers and pay higher wages.
A healthy, growing economy is the best way to provide hardworking Americans a chance to live out the American Dream.
As the son of a seasonal farm workers — one who worked on the fields himself, and who knows what it’s like to live in poverty — it’s insulting to hear tax-relief opponents mischaracterize the contents of this legislation to score cheap political points.
The Hispanic community should cheer tax reform’s success. It might not be perfect, but it is a marked improvement over the status quo.
Daniel Garza is the president of the LIBRE Initiative.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.