NTF Issue Paper: president7.doc. 2-18.

BACKGROUND. Since his election, President Trump has brought enormous and continuing economic prosperity to all Americans, particularly with tax relief and regulation reform. Taxpayers in Nebraska continue to benefit from his political successes in Washington, D.C. and should show appreciation by enthusiastically promoting the Trump Agenda against the liberal opposition.

TAX RELIEF RESULTS. “When we began our push for tax cuts, I promised that our bill would result in more jobs, higher wages, and tremendous relief for middle-class families, and that is exactly what we have delivered.” President Donald J. Trump. These cuts have incentivized waves of employers to announce new investments, employee bonuses for over 3 million, Trump wage increases, and retirement benefit hikes. Lockheed Martin will invest $200 million in research and development in 2018, hiring additional workers. FedEx announced 3 major programs, including $1.5 billion to expand its facilities. Exxon Mobil will invest over $50 billion to expand its businesses here over 5 years. Walmart will give Trump cash bonuses of up to $1,000 to hourly workers and raised its hourly pay to $11. Pfizer will invest $5 billion in capital projects over 5 years. Verizon is granting shares of stock as bonuses valued at $2,650 to 155,000 non-management employees. Fiat Chrysler issued $2,000 bonuses to 60,000 employees and will invest $1 billion in a Michigan plant, creating 2,500 new jobs. JP Morgan announced it would raise wages for 22,000 employees by an average of 10%, to between $15 and $18 per hour, hire 4,000 employees, and open 400 new branches. Trump tax cuts will accelerate our economic growth. Consumer confidence increased in January, according to the Conference Board Consumer Confidence Survey. National optimism has soared since the passage of the December tax bill. Positive outlook among business owners has grown by 18% from 2017 to 2018. 79% of surveyed business owners were enthusiastic about the tax bill, 72% believing it will boost the economy.

HOW IT HELPS. Dropping the corporate tax rate from 35% to 21% allows U.S. businesses to better compete here and overseas and grow. More jobs and capital remaining in the U.S. Trump reform will bring trillions back to the U.S. His change from the old worldwide system to a territorial system ended the penalty imposed on companies headquartered here. A one-time repatriation tax imposed on income that has largely accumulated overseas has ended the incentive to keep corporate money offshore. Eliminated were tax dodges and loopholes that mostly benefited rich taxpayers and multinational corporations.
Over the next 5 years, companies can deduct 100% of the cost of their capital investments in the year they make such investments. Thus, businesses can invest more earnings in their businesses and hire additional employees at higher wages. Layoffs rare, hiring strong. Now, owners of pass through businesses, 90% of all companies, like an S corporation or sole proprietorship, can deduct 20% of their business income.

NEBRASKA TAXPAYERS. Annual income for our households will increase by an average of $4,000. The standard deduction will almost double, so that the first $24,000 earned by a married couple is tax free. Middle class families no longer will face the higher Alternative Minimum Tax. The Child Tax Credit now doubled to $2,000 for each child under 17. This full credit available to single-income homes with incomes up to $200,000 and to double-income homes with incomes up to $400,000. The refundable part of the credit increased from $1,000 to $1,400 per child, meaning bigger refunds going to many lower and middle income families who have insufficient tax liability to offset the credit. The President has provided $5.5 trillion in total tax relief, more than $3 trillion returning to American working families.

REGULATION REDUCTIONS. The federal regulatory code now includes 185,000 pages and would take 3 years to read. President Trump kept his promise to cut burdensome federal regulations, saving companies and taxpayers millions. The feds issued 67 deregulatory actions for FY 2017 while creating only 3 new ones. Federal agencies now issuing 22 deregulatory actions for each 1 regulation imposed. Over 1,500 planned reg actions withdrawn or delayed. So far in FY 2018, fed agency deregulation cut over $9 billion in consumer costs. The President has signed 15 Congressional Review Act resolutions, more than any president, that scrutinize new regulations before passage. Trump is delaying implementation of the Obama rule that expanded the definition of wetlands to include small creeks and waterways, rules that prompted ire from farmers and mining groups. He will replace that rule with a less rigorous alternative. The Administration plans to relocate regulatory agencies from Washington, D.C. to states where they can more easily be accessible to the angry and frustrated people they regulate. 2 million unionized federal bureaucrats in D.C. strenuously oppose this action. Trump scaled back 2 huge national monument areas in Utah, restoring acres to private development. Utah officials complained that the Obama land grab was too broad and closed the area to energy development and recreational access. Trump reduced the Obama federal designation by 85%. The President also sanctioned the importation of big game trophies from Africa shot for sport, like tusks and hides, overturning another Obama ban. Big game hunting actually helps elephant herds and other species by culling their numbers. Permit monies fund conservation programs. Safari Club International and the NRA had challenged the ban in court. In June, the Interior Dept. removed protection for overpopulated grizzly bears near Yellowstone Park, allowing their hunting.

BOOMING ECONOMY. The Trump American Model regenerates our economy. In 2017, our economy experienced Gross Domestic Product (GDP) growth of over 3% for 2 straight quarters. The 2017 4th quarter advance in the GDP followed these gains, according to the Commerce Dept. 2 million new jobs created. The number of Americans filing for unemployment benefits has fallen to the lowest level since 1973. New unemployment insurance claims hit a 5-year low in 2017. The weekly paycheck for the median U.S. worker rose by 3.3% between 2016 and 2017, the highest rate since before the Great Recession. Wage growth for this same period was highest for employees with a high school education or less. The Jan. 2018 employment situation report released by the Bureau of Labor Statistics evidenced sustained momentum in 2017. More jobs in construction, retail, wholesale, mining, and logging. Non-farm payrolls rose 200,000. More companies are increasing wages and salaries than in the last 18 years. The net percentage of those companies that have increased wages and salaries over the last 3 months rose to 48, the 3rd highest number since April, 1982. U.S. employers now have the resources to bid up wages. Competition will spread those increases without the unintended consequences of a dramatic minimum-wage increase. American factories expanded more than forecast in January and almost at the fastest rate in over 13 years. The manufacturing industry created almost 200,000 jobs in 2017, after thousands disappeared under the Obama Regime. January, 2018, shows that manufacturing is benefiting from great consumer spending and business investment. After the Standard & Poor gain of almost 6% in 1-18, the remaining year should look similar. U.S. oil production reached 10 million barrels daily in 11-17, the first time since 1970, showing the power of the shale oil and natural gas boom. Over 6 million barrels came from shale. This boom from Trump promoting energy dominance and lifting regulations, eliminating many Obama Regime regulations targeting fossil fuel development. Disability rolls shrinking quickly, as fewer apply for benefits, and more go back to work. The number of Social Security Disability apps in 2017 dropped 6% from 2016, the largest 1-year decline since 1997. The number leaving this program was higher in 2017 than in over a decade. Thus, the number of people collecting federal disability payments dropped 1.3% last year, the biggest decrease since 1983.
STOCK MARKET SPIKE. The Dow Jones Industrial Average has closed at record highs over 70 times since the inauguration, closing over 26,000 for the first time in history. The S&P closed in a string of record highs, its 12th record on Feb. 5, marking the fastest 1,000-point climb in its history, according to S&P Dow Jones Indices. The Nasdaq Composite Index also at a record level, its 12th record high for January. Trump boosted the Dow Jones Industrial Average more in his first year than any other president since FDR. The Dow has spiked over 31% since his inauguration. U.S. corporations are promising large annual savings, higher dividend payments, and more extensive stock buybacks.

EXPORTS SURGE. Increasing shipments of merchandise to overseas customers provides increasing markets for American manufacturers. The U.S. will become a net exporter of natural gas in 2018 for the first time since 1957, this time to 20 nations. Exports of liquid natural gas (LNG) will grow, as terminals on the Gulf Coast reach full capacity, together with additional terminals in Maryland, Georgia, Louisiana, and Texas. The Trump Energy Dept. expects that, by 2019, our LNG capacity will become the 3rd largest in the world. These plans seem crucial, as we still have a trade deficit of $43.5 billion. The Administration continues to renegotiate the NAFTA treaty with Canada and Mexico. Trump insists on reauthorizing the agreement every 5 years and requiring all vehicles manufactured in these nations for sale in the U.S. to contain at least 85% U.S.- made parts or face a tariff.

DRILL, BABY, DRILL. President Trump is expanding offshore drilling off every coast. Private companies could drill on 90% of our offshore reserves. His 5-year plan would open new areas to oil and gas exploration, blocked for years by the Obama Regime. Over 1 billion barrels of oil recoverable on the outer continental shelf, and over 30 trillion cubic feet of natural gas. Development of these offshore energy resources will increase jobs and provide billions to fund conservation along the coasts. States can gain royalties from this drilling and create hundreds of jobs. Radical environmental groups immediately protested, naturally.

STATISTICAL PROOF. As the government tends not to lose money, it does not experience an increase in debt from a corporate tax cut, according to this evidence. The government also does not experience a rise in interest rates.

Figures show responses to a 1% point cut in the average corporate income tax rate. Solid lines are point estimates; dotted lines indicate 95% confidence intervals. Red lines are estimates and intervals with average corporate tax rate ordered first, blue lines estimates and intervals with average income tax rate ordered first. Source: Mertens and Ravn (2013).
HEALTH INSURANCE. The President proposed new allowances for small businesses and individuals to buy into a conservative health plan that would bypass Obama Care regulations. These association health plans are cheaper. They have existed for years on a limited basis, allowing small businesses to join together to buy insurance plans. Plans may sell across state lines. The Trump Labor Dept. believes that 11 million Americans can benefit from such plans, which would help the uninsured without prohibiting other options available in the free marketplace. The Obama Care individual health care mandate yoke now repealed, giving immediate financial relief to Nebraskans.

BACK TO WORK. The President insists on putting the lazy back to work, with his decision to permit states to impose work requirements on Medicaid recipients. This aim targets able-bodied adults of working age, not the elderly, the pregnant, or disabled. The broad definition includes community service, education, job training, and volunteer service. Trump is not forcing his policy on states; ones that agree seek permission from the Centers for Medicaid Services. This proposal combats sloth, increases community attachment, and increases work rates. Trump has drafted a proposal to eradicate radical environmental rules to make it easier to build and re-build roads, bridges, and pipelines in his infrastructure renewal plan that will enhance employment. Whirlpool is adding 200 job slots in Ohio, after Trump imposed a deserved tariff of up to 50% on Red Chinese washing machines.

TAKE ACTION NOW. Lobby your Capitol Hill representative and 2 senators to support the Trump Agenda. Write supportive editorials and call in to your local radio talk show to promote Trump initiatives.

Research, documentation, and analysis for this issue paper done by Nebraska Taxpayers for Freedom. This material copyrighted by Nebraska Taxpayers for Freedom, with express prior permission granted for its use by other groups in the NE Conservative Coalition Network. 2-18. C.

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