The old saying that a rising tide lifts all boats rings true given today’s growing economy.
The U.S. economy’s historic boom benefits all Americans as job creation soars and wages rise. The economy outperformed expectations for the second year in a row in 2018. More than 2.6 million jobs were created last year, and the number of job openings surpassed the number of unemployed workers for the first time on record. The unemployment rate remained at or below 4 percent for the past 13 months, the longest streak in nearly five decades. The booming economy paid off for American workers last year - with nominal hourly wage growth exceeding 3 percent for the first time in almost a decade.
Since 2017, the Trump Administration has rolled back job-killing regulations to unleash an economic boom across all sectors of the economy. In 2018 alone, Federal agencies issued 12 deregulatory actions for every new significant regulatory action, saving businesses $23 billion in regulatory costs.
During this tax filing season, it is important to remember that the Tax Cuts and Jobs Act signed into law by President Trump has spurred additional business investment and put more money into the pockets of most American workers. Real disposable personal income increased by $2,300 from the end of 2017 to the fourth quarter of 2018. Business investment and productivity are on the rise thanks to the tax cuts, and capital expenditures are up $300 billion from 2017. One of the most powerful benefits of the tax law is the new 20 percent Qualified Business Income (Section 199A of the tax law) deduction for small firms and the self-employed. Section 199A allows owners of pass-through entities to deduct 20 percent of the business income that is passed onto their individual return.
The overall goal of all of these economic policies advanced by President Trump is to make sure that all small business owners are leveraging the tax cuts and deregulation efforts pushed forward since the start of his administration. Today, business owners are investing in their companies and their employees by raising wages, providing bonuses, and increasing benefits. I look forward to additional good economic news over the next several months. 2019 looks to be a banner year for small business growth in Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. I am proud to represent the president in serving the small business communities across this region in the coming year.