Before and after: How the Trump tax cuts transformed the economy

For the last four years, Americans have endured sky-high inflation, stagnant incomes, and an anemic economy propped up by reckless government spending.

And just as Americans are starting to recover from the chaotic economy of the Biden years, there’s a new threat to your prosperity: the expiration of the 2017 Trump tax cuts.

If Congress doesn’t extend the cuts, 6 in 10 Americans will see a massive tax hike when filing their tax returns — with the average family of four paying $1,500 more every year. The Trump tax cuts keep money in your pocket, but there’s another reason Congress needs to extend them: They fueled one of the most prosperous economies in American history.

Soon after they were signed into law, the economy grew at record levels, incomes rose, and there was practically no inflation.

So let’s take a trip down memory lane and remember how the 2017 tax cuts brought a booming economy — and how all Americans benefitted from it.

A BOOMING ECONOMY

The Trump tax cuts slashed income tax rates for almost all income levels, reduced taxes for businesses, and simplified the tax code for most Americans.

In the two years before the Tax Cuts and Jobs Act was signed into law, the American economy grew relatively slowly, and economists even forecasted unemployment to rise slightly — then the Trump tax cuts happened, and the economy boomed.

• Between 2017 and 2019, gross domestic product grew at an average of 2.8%, faster than the two years before the TCJA.
• Two years after taxes were slashed, the unemployment rate fell to around 3.5% — the lowest since 1969.
• Inflation was a non-issue, with prices rising just 1.8% in 2019.
• Disposable income, investments, and GDP grew beyond pre-tax cut forecasts.

The evidence is clear: After the Trump tax cuts were passed, the economy grew, unemployment went down, incomes went up, and prices stayed the same.

MORE AND BETTER JOBS FOR EVERYONE

The Trump tax cuts created an economy that worked for Americans of all income levels, ethnicities, and education levels, not just big corporations.

• Unemployment for African Americans and Latinos hit record lows.
• Earnings of Americans at the lower ends of the income distribution grew dramatically between 2017 and 2020.
• The median household income rose to its highest level in history in 2019.

It looks like letting people keep more of their hard-earned money and reducing barriers for businesses to innovate and invest helps the economy grow, and everyday Americans reap the rewards — who would have thought?

CONGRESS: EXTEND THE TRUMP TAX CUTS

Eight years ago, Washington voted for the biggest tax cuts in decades. As a result, America enjoyed one of the most prosperous economies in our history.

Today, these tax cuts are needed even more than in 2017.

America is recovering from the disastrous four years of the Biden administration, and the last thing we need is a massive tax hike.

That’s why Americans for Prosperity is mobilizing our grassroots army to make sure Congress extends the 2017 Trump tax cut and protects our prosperity.

Click here if you want to join the nationwide movement to extend the tax cuts and defend your prosperity.