There’s a reason President Donald Trump and Vice President Mike Pence chose Indiana to unveil their tax cut plan. Thanks to years of strong Hoosier leadership, our state is the envy of the nation for low-tax policies that keep our economy growing.
With Trump’s tax cut plan, the federal government is taking a page from Indiana’s playbook. The president’s plan will simplify our outdated, overly complicated federal tax code and cut middle-class taxes. It will bring a stronger economy, more jobs and bigger paychecks to Hoosiers.
As I travel around our state, I often hear Hoosiers frustrated that wages have flat-lined while the cost of living keeps going up. It’s more expensive than ever to pay the bills, go to the doctor and send our kids to college, but paychecks have not kept pace. According to U.S. Census data when adjusted for inflation, median household income has barely budged over the last decade, increasing by a mere 2 percent.
Trump is right when he says American workers need a raise, and the clearest way to do that is through his tax cut plan. The president’s tax cut plan will grow paychecks by cutting taxes on individuals and families, and it will grow our economy long-term by easing the federal tax burden on job creators.
In Indiana, Hoosiers have proven they know how to use their money better than the government. The president’s plan will cut the number of tax brackets in half, lower rates, nearly double the standard deduction for Hoosier families and enhance the Child Tax Credit. Bottom line: It will let hardworking Hoosiers keep more of their hard-earned paychecks.
The president’s tax plan also will follow Indiana’s lead by delivering competitive, simple and low tax rates for Hoosier job creators of all sizes. We’ve seen firsthand in Indiana that these kinds of changes attract new companies to our state and create jobs. That’s why Indiana is consistently named among the best states to do business, and our unemployment rate remains far below the national average.
The president's tax plan will help replicate this on a national scale, leading to record investment in America as companies bring back jobs from overseas and invest in our workforce here at home. When President Ronald Reagan cut taxes in 1981, the economy created 11.7 million new jobs over five years, and GDP grew 32 percent during his presidency. If our economy grows 32 percent under Trump, it would be like adding the world’s third-largest economy, Japan, onto the United States.
Passing Trump’s tax cut plan is our best shot at growing our economy and giving Hoosiers the pay raise they need. But passing it won’t be easy. House and Senate Republicans support the plan, but we need folks on both sides of the aisle to make these reforms a reality.
Indiana has proven tax cuts can help everyone, and I have every confidence America will come together and prove it too.