President Donald Trump and Rep. Kevin Brady, R-Texas, the House’s top tax writer, recently announced that Republicans are working on a second round of tax cuts. In the president’s words: “It’s going to be something very special. Kevin Brady’s working on it with me.”
If that’s the case, Nevadans should rejoice.
A key part of the plan is to extend the individual tax cuts that are set to expire in 2025, giving millions of Americans tax relief for the next decade and beyond. Nine in 10 middle-class taxpayers are on track to receive relief this year, with an average savings of roughly $2,000. Let’s let the gift keep on giving.
If designed to help job creators, a second round of tax cuts would continue to help small businesses invest in growth opportunities and reward their hardworking employees. To date, more than 500 U.S. employers have announced pay raises, bonuses and other employee benefits since the Tax Cuts and Jobs Act passed, benefiting more than 4 million working Americans. Not only are workers seeing greater take-home pay from lower rates, but job creators are taking advantage of their lower rates to provide additional relief — from higher salaries to 401(k) hikes. This compound effect has rejuvenated our economy.
Nevada is no exception. Ely’s Prospector Hotel &Gambling Hall recently gave its employees a $500 bonus and raised starting wages to $12 per hour. Construction ramped back up on the Fontainebleau resort (now The Drew Las Vegas), which could result in 10,000 new jobs. HBM Technology Partners, Junk King Reno, Kalb Industries and countless other employers have announced renewed investment in their businesses and the people working for them. Even Apple broke ground on a new facility in Reno, exposing our state to more high-tech career opportunities.
Another round of tax cuts is sure to boost consumer spending. Last month, U.S. consumer confidence hit a 14-year high, in large part because lower taxes have yielded larger budgets. Even lower-income Americans have become more optimistic under President Trump, who has strived to give them more purchasing power. According to The Wall Street Journal, “optimism improved markedly for households in the bottom third of income distribution.”
Mark Hamrick, senior economic analyst at Bankrate.com, claims the Tax Cuts and Jobs Act will increase consumer spending over the long haul and bolster Americans’ savings accounts. With an increase in spending and saving, what’s not to love?
Our consumer economy is driven by customers’ purchasing power. When they can spend more on goods and services, our economy grows. And when they can save more of their earnings, our nation’s financial health improves.
A lower tax burden only accelerates the process. Instead of funneling more money to Washington, D.C., and unelected bureaucrats, tax cuts put money into the hands of those who actually drive our economy. They also incentive employees to work even harder. If you know the Tax Cuts and Jobs Act makes your paycheck larger, you’ll work longer hours and go the extra mile to secure raises and promotions. When your money ends up in the Washington swamp, what’s motivating you to earn more of it?
Whether you are in a city such as Las Vegas or in rural Nevada, tax cuts do not discriminate. Whether you’re a small-business owner or an employee, chances are the Republican tax law will help you — if it hasn’t already.
Let’s look forward to more tax cuts. Washington bureaucrats have enough of our money. We deserve to keep even more of it.
Peter Guzman is president of the Las Vegas Latin Chamber of Commerce.