Republican Tax Cut Bill Will Boost The Labor Market

Job creation and wage growth exceeded expectations again as the U.S. economy and labor market remain solid thanks to President Trump’s pro-growth, pro-energy policies. Friday’s jobs report showed 139,000 jobs were created last month, and the unemployment rate stayed at 4.2%.

Small businesses and the private sector were responsible for these new jobs, with substantial gains in the leisure and hospitality sector and more declines in federal government positions. That’s a stark contrast from last year’s labor market, which was propped up by nearly 500,000 government jobs. Small businesses are confident and staffing up for summer.

Today’s jobs market is just a taste of what’s to come when the Federal Reserve lowers interest rates, improving small business access to credit, and Republicans pass their big, beautiful bill (BBB), which expands and makes permanent the Tax Cuts and Jobs Act.

New JCN polling finds 70% of small businesses will create jobs, expand operations, boost worker wages, or reinvest in their communities if the TCJA is extended. Economists estimate the BBB’s small business provisions will create over 1 million new jobs, drive $750 billion in economic activity, and grow GDP by up to 3.8%.

This legislation does more than make permanent a lower tax framework; it safeguards the future of American entrepreneurship and shields families from what would otherwise be one of the largest tax increases in our country’s history — a looming 22% average hike set to hit next year.

At the heart of the BBB are powerful provisions that unlock the potential of Main Street. It increases the small business tax deduction from 20% to 23%, a move that JCN has long been the leading voice for, directly benefiting 26 million entrepreneurs. And it restores 100% immediate expensing, allowing small businesses to write off investments in equipment, technology, and modernization — vital tools for expansion and competitiveness.

No wonder small businesses support extending the TCJA by a margin of four to one. Even Democrat-run small businesses support it by a margin of 3 to 1, demonstrating that small business tax cuts are truly bipartisan.

The bill also includes several provisions that help hardworking middle-class Americans: it doubles the standard deduction, expands the Child Tax Credit, and exempts tax on tips and overtime pay. According to the Joint Committee on Taxation, the bill lowers the tax burden on those making between $30,000 and $80,000 by 15%.

Elon Musk is dominating headlines for saying the bill doesn’t do enough to cut spending. But he needs to read Page 1 of the conservative governing playbook, which says cut taxes whenever, wherever, and however you can. Given Republicans’ small majority, legislators can’t risk letting the perfect be the enemy of the good. Trying to pass tax cuts and massive spending cuts at the same time risks delivering neither.

The only way to truly fix the nation’s perilous fiscal situation is through strong economic growth — something that can only come via tax cuts. We saw this dynamic after the original TCJA passed in 2017. Despite dire predictions from the Congressional Budget Office, Democrats, and the media, inflation-adjusted federal tax revenues (not including tariffs) have significantly grown.

Tax collections for fiscal 2024 were half a trillion dollars higher than CBO had projected without the tax cut. JFK said it best: “Reducing taxes is the best way open to us to increase revenues.”

Tax cuts now equal more jobs, a stronger economy, and a better fiscal situation tomorrow.

Alfredo Ortiz is CEO of Job Creators Network, author of “The Real Race Revolutionaries,” and co-host of the Main Street Matters podcast. 

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.