Trump’s tax cuts were a boon for students

Working students are reaping the benefits of the GOP tax cut. Democrats claim the GOP tax cut is focused on “the rich.” In reality the GOP tax cut has secured higher take-home pay, tuition assistance, surprise bonuses, and even more job opportunities for students. The tax cuts are driving economic growth and allowing students to keep more of their hard earned money.

The GOP tax cut has increased take-home pay for 90 percent of wage earners according to the Treasury Department. Every penny counts for working students, so an increase in take-home pay can make a difference when paying for textbooks, transportation and groceries. Since the students get to keep more of the money they earn, the GOP tax cut may even allow working students to take on less student loan debt.

The GOP tax cut nearly doubled the standard deduction, from $6,350 to $12,000. This means students will pay zero percent federal income tax on the first $12,000 of their income. Any dollar earned above $12,000 will be taxed at a lower rate than before the tax cut. Whether students are traditional wage earners, or work as freelancers on platforms like Lyft, Uber, Fiverr, or TaskRabbit, they will not pay federal income taxes on the first $12,000 of their income.

Many employers across the country have given surprise tax-cut bonuses to non-executive employees typically ranging from $200 to $1,000. These bonuses are being given to full-time, as well as part-time and seasonal employees. Students can apply these tax cut bonuses to their tuition. Some corporations who have given tax-cut bonuses include Chipotle, Lowe’s, Ulta Beauty, Home Depot, Starbucks, Apple, T.J. Maxx, Taco John’s, AT&T, and Walmart.

Starbucks announced the addition of 8,000 jobs due to the tax cut. There are thousands of Starbucks locations throughout the United States, especially on or near college campuses, which will make these jobs readily accessible for students.

Other companies are using savings from the GOP tax cut to help working students cover the costs of their education. McDonald’s will provide over 400,000 U.S. employees access to their educational program, Archways to Opportunity. This expansion will allow crew members who work at least 15 hours a week to access up to $2,500 per year (up from $700) to use towards their education costs.

Georgia-based Southwire, located near the University of West Georgia, will offer bridge scholarships to help eligible hourly employees. These bridge scholarships can be used towards a two-year or four-year degree.

The success of tax reform also extends to small businesses. For example, Don Ramon Restaurant in Florida distributed bonuses to all its employees. The restaurant is near Palm Beach Atlantic University. Texas-based Hinee Gourmet Coffee will not only be able to give bonuses because of the GOP tax cut, but will also be able toupgrade equipment. Hinee’s two locations are near several colleges including Northwest Vista College, Christ Mission College, and Quest College. Students working at Hinee will be able to better serve customers with the new and improved equipment.

The GOP tax cut is also creating jobs. Apple promised to create over 20,000 jobs in the United States over the next five years. Many Apple stores and facilities are located near colleges or universities which makes the company a convenient place for students to work. Economic growth from the tax cuts is allowing for the creation of thousands of jobs in various sectors. A strong job market is vital for students and recent college graduates’ success.

House Democratic leader Nancy Pelosi arrogantly believes that tax reform bonuses and benefits are “crumbs.” But higher take-home pay or a $1,000 bonus check can make all the difference, especially to a broke college student. 

Democrats are purposely trying to mislead people about the undeniable benefits of the GOP tax cut to working students. Why? Because if they take control of Congress, they want to take away the tax cuts and instead impose tax hikes. This would decrease take-home pay and weaken the job market for students.

Despite the rhetoric of Democrats, tax reform is helping working students. The law has resulted in more take-home pay, more tuition assistance, and most importantly more opportunities for students entering the job market.

Dawn-Marie Sullivan is a communications associate at Americans for Tax Reform.