Top House tax writer Kevin Brady says President Donald Trump’s landmark tax-cut law has impacted the U.S. economy and businesses in a very positive way.
Rep. Brady, R-Texas, also applauded the Trump presidency for obliterating the "new normal" of 2 percent economic growth.
The "new normal" of slow economic growth, high unemployment, and government debt problems was a term coined by noted economist Mohamed El-Erian in 2009 following the 2008 financial crisis, CNBC.com explained.
The idea of a "new normal" was popularized by Obama White House economist Larry Summers, CNBC.com added
"Turns out that 'new normal' of the very sluggish 2 percent growth as far as the eye could see for America was wrong and is wrong," the House Ways and Means Committee chairman told CNBC.
"A worker who is seeing $350 more in their paycheck right now ... all of that is incredibly helpful," Brady said.
"Now, we're seeing the result of policies of ... a competitive tax code," Brady said.
For his part, President Donald Trump basked in the glow of several bright spots in the U.S. economy and even sought credit for a gauge of strong growth that’s still fairly cool: wages,
“Since the election, we have created 2.4 million new jobs, including 200,000 new jobs in manufacturing alone,” Trump said in his first State of the Union speech Tuesday. “After years of wage stagnation, we are finally seeing rising wages.”
The labor market remains strong: The unemployment rate is the lowest since 2000, and applications for unemployment benefits are near the lowest level since 1973. Still, there are many soft spots, with paychecks a prominent weakness. A sustained acceleration in wage growth has remained elusive -- averaging just 2.2 percent during this expansion -- even though businesses have been adding jobs at a steady pace.
(Newsmax wire services contributed to this report).
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