Trump's State of the Union: Home run or Disaster?

Politics, Americas

And what did he get wrong?

President Donald Trump delivered his third State of the Union address Tuesday night. The Heritage Foundation’s policy experts weighed in with reaction and analysis.

Economy

Tax Cuts Continue to Boost Jobs and Wages

Thanks to the 2017 tax cuts and other pro-growth economic reforms, like deregulation, the U.S. economy has outstripped expectations. The president touted the economic success of slashing “job-killing regulations” and “enacting historic and record-setting tax cuts.”

He is right, and the proof is in the numbers. 

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Unemployment is at a 50-year low of 3.5%. Businesses have added jobs for 111 straight months, the longest streak on record, and there are more jobs available than people looking for them. 

Wages have also been increasing. Wage growth for the median worker was 4% over the past year. What’s most impressive is that the lowest-income workers in the U.S. have benefited the most from the strong labor market, seeing some of the fastest wage growth of any workers.

Minority and lower-skilled workers have also seen some of the largest drops in unemployment and largest wage gains in recent years. For example, the median black female worker benefited from an 11% wage increase over the last year. Our strong economy is truly benefiting all Americans.

This isn’t happenstance. The 2017 tax cuts made American workers globally competitive again by lowering punitive business taxes to levels similar to most European countries. Coupled with sweeping reforms to outdated and unnecessary regulations, tax cuts have made the U.S. an easier place to do business and hire American workers.

—Adam N. Michel, senior policy analyst, Hermann Center for the Federal Budget

Lifting Americans Off Welfare