Tax reform’s second windfall is occurring at the state level

Americans are beginning to enjoy the benefits from the first federal tax reform since Ronald Reagan, more than 31 long years ago. The American economy is responding in an overwhelmingly positive way.

According to a recent survey from Americans for Tax Reform, more than 500 businesses have publicly announced bonuses, wage increases, 401(k) match increases, expansions, charitable contributions and utility-rate reductions as the result of the federal Tax Cuts and Jobs Act (TCJA) signed into law by President Donald Trump in December.

In addition, the recent national jobs numbers show unemployment has fallen to 3.9 percent — the lowest level since 2000 — and the National Federation of Independent Business (NFIB) reports record small business optimism. These are just a few of the early dividends of tax reform that will benefit hardworking American taxpayers.

However, the untold story of federal tax reform’s success is the opportunity the new law has provided policymakers across America’s 50 “laboratories of democracy,” where unexpected tax receipts that are directly linked to changes in the federal tax code have been a game changer in many state capitols this year.