White House: Tax Reform Will Increase Average Family Income By $4,000

REUTERS/Jonathan Ernst

Saagar Enjeti White House Correspondent
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American families will see on average a $4,000 increase in annual wages because of changes to the corporate tax rate, the White House council of economic advisors said in a new report on the economy.

“We estimate that by lowering the cost of capital and reducing incentives for corporate entities to shift production and profits overseas, the corporate provisions of the [Tax Cuts And Jobs Act] will raise GDP by 2 to 4 percent over the long run, and increase average annual household income by $4,000,” the group noted.

The CEA also claimed that the Republican led tax reform be responsible for a “1.3 to 1.6 percent” and found nearly 200 billion dollars of investment projects related to tax reform.

The report touted the robust state of the U.S. economy under President Donald Trump highlighting a rapid increase in growth, a historically low unemployment rate, and bold predictions for 2018.  The group “projects economic growth will increase to 3.1 percent in 2018, remaining above 3 percent through 2020 and adding a cumulative $1.1 trillion to the economy,” the White House said in a Wednesday release.

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