- Black unemployment hit its lowest level of 6.8% in 2017
- 50 S&P 500 companies have announced investments as a result of tax cuts
BET founder Bob Johnson believes African Americans should be filing their taxes with a smile on their face this year. He credits Donald Trump with two of the lowest unemployment figures for African Americans and a tax reform package that is spurring job creation for the black community. Should the Trump Administration get credit for lowering black unemployment?
Why This Matters: Barack Obama can’t seem to get the credit he deserves for navigating the country out of an enormous recession. During the heights of the Recession, black unemployment was approaching 17%. By the time Trump’s first job report came out, the black unemployment rate was at 7.8%. It would be right to attribute the 10% drop in black unemployment to the overall health of the economy rather than to one president.
Johnson believes the economy is on a strong growth path as a result of the Tax Cuts and Jobs Act Congress passed. He also credits progress to the drop in the black unemployment rate and stable interest rates. As of March, 50 companies have announced wage increases, bonuses, or other special investments due to the tax cut corporations received. Individuals received a tax cut as well, but that phases out in 10 years. Further, some Republican lawmakers are floating an increase in the tax rate, just in case the tax reform package does not generate enough growth for the economy. This highlights it is too early to claim victory for the African American community.
Situational Awareness: One of the biggest tools to lower taxes is through homeownership where individuals can deduct mortgage interest and property tax payments. The rate at which black people tap into this benefit hasn’t changed since the passage of the Fair Housing Act. Roughly 41% of black people own homes in the U.S., leaving millions of black people window shopping when it comes to realizing tax benefits.
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