FOR IMMEDIATE RELEASE

March 16, 2018

Media Contact: J.P. Freire -- (202) 306-5035

 

 

JOINT ECONOMIC COMMITTEE RELEASES RESPONSE TO THE

2018 ECONOMIC REPORT OF THE PRESIDENT

Analysis finds that tax cuts, regulatory reform, and other growth-oriented policies are launching an economic boom

WASHINGTON—Congress’s official economic committee has released its 2018 Economic Report, responding to the Economic Report of the President, finding accelerated economic growth over the last year. 

“The 115^th Congress and the new Administration have already scored major wins for the American people and our economy by passing the Tax Cuts and Jobs Act (TCJA) and reducing choking regulations,” said Chairman Erik Paulsen, R-Minn. “In just one year, we have taken the first steps towards restoring American prosperity, and Americans are already enjoying the benefits.”  

This annual Report is required of the Joint Economic Committee (JEC) by the Employment Act of 1946. JEC is the counterpart to the President’s Council of Economic Advisers and serves the Congress by reviewing economic conditions and recommending improvements in economic policy.The Report relies on testimony from hearing witnesses and research as part of the JEC’s investigation of the particulars of what has been restraining the economy during the lackluster recovery following the 2008 recession.

Key Takeaways: 

• Since the 2016 election, strong job growth has become the norm as the unemployment rate has declined to 4.1 percent—the lowest since the year 2000. 

• 550,000 new jobs have already been added in just the first two months of 2018.

• With TCJA and an improving regulatory environment, the prospects are better for increased business investment, the return of U.S. corporate headquarters that left for foreign locations, and repatriation of U.S. multinationals’ foreign earnings held overseas for tax reasons.

• President Obama’s attempts to repair the economy fell far short of past recoveries and even fell short of the Obama Administration’s own expectations, with the Congressional Budget Office (CBO) downgrading the economy’s potential output in each of the eight years that President Obama was in office.

• By breaking with the last Administration’s approach, the 115^th Congress and the Trump Administration are already delivering significant economic results. 

• Because of the new, lower corporate tax rate of 21% and the shift to a territorial tax system on the international level, the U.S. economy will benefit from inflows of corporate cash, whether it is used to hire and raise the pay of workers, reduce corporate debt, pay dividends, boost stock values with buybacks, or finances domestic capital investment directly.

• Domestic private business investment will boost labor productivity, employment, and wages. 

Click here to view the report.