Contribute
CONNECT:

research

Millennials Are Thriving In The Trump Economy

- March 22, 2018

From Falling Unemployment Rates To Lower Taxes, President Trump Has Proven To Be A Boon For Millennials

_______________­­______________­__

TOP TAKEAWAYS

  • Millennials have repeatedly rated the economy as the issue most important to them.
  • Since President Trump took office, the economy as a whole has boomed.
  • Millennial unemployment and wages have fallen and gone up respectively since President Trump took office.
  • Thanks to the Tax Cuts and Jobs Act, a millennial making the median income for their generation, $40,456, would see a 3 percent income tax decrease, resulting in a savings of over $1,200.
  • Several companies whose workforces are made up of large numbers of millennials are offering their employees benefits like higher wages and bonuses as a result of the Tax Cuts and Jobs Act.
  • Millennials, who are already more inclined to start businesses than previous generations, are free to unleash their entrepreneurial spirit thank to the Tax Cuts and Jobs Act, which cut tax rates by 20 percent for businesses.

_______________­­______________­__

Millennials Have Repeatedly Said The Issue That Matters Most To Them Is The Economy

A Study Conducted After The 2016 Election Showed That The Economy Was The Most Important Issue For Millennial Voters. "A new study conducted after the election shows that the economy mattered most to millennial voters. The study by the Millennial Impact Report surveyed 350 young voters they had surveyed in different waves throughout the election. The organization found that millennials had considered education to be the most important topic during the election through each of three waves of surveying. However, this changed when respondents were surveyed between Nov. 9 and Nov. 14. The survey showed employment and wages were the primary concern for millennial voters." (Eric Garcia, "Study: Economy Was Top Issue Among Millennial Voters," Roll Call , 1/12/17)

A Pew Study Showed That 80 Percent Of 18-29 Year Olds Said Economic Policy Was "Very Important" To Them During The 2016 Election, A Higher Rate Than Any Other Issue In That Age Group. ("2016 Issue Importance By Age Groups," Pew Research Center , 7/7/16)

In A Poll Of 18-30 Year Olds, Almost A Quarter Ranked Economic Growth As The Most Important Political Issue. "Nearly a quarter of young Americans put economic growth at the top of their list of important political issues this year, while 18 percent say income inequality is among their top issues." (Emily Swanson, "What Young Americans Think On Top Issues Facing The Country," The Associated Press , 7/12/16)

SINCE PRESIDENT TRUMP TOOK OFFICE, THE ECONOMY HAS IMPROVED, ESPECIALLY FOR MILLENNIALS

The U.S. Economy Has Soared Since President Trump Took Office

In January 2018, Wages Rose At Their Fastest Rate Since 2009. "U.S. hiring picked up in January and wages rose at the fastest annual pace since the recession ended, as the economy's steady move toward full employment extended into 2018." (Sho Chandra, "U.S. Added 200,000 Jobs In January; Wages Rise Most Since 2009," Bloomberg , 2/2/18)

In January 2018, The Number Of Americans Filing For Unemployment Fell To "A Near 45-Year Low." "The number of Americans filing for unemployment benefits fell to a near 45-year low last week, pointing to strong job growth in February and solid momentum in the economy." (Lucia Mutikania, "U.S. Jobless Claims Near 45-Year Low As Economic Outlook Brightens," Reuters , 2/22/18)

In March 2018, Bloomberg's Consumer Comfort Index Rose To Its Second Highest Level Since 2001 "As The Benefits Of Increased Take-Home Pay From Tax Cuts" Took Effect . "Americans' sentiment rose last week to the second-highest level since 2001, as the benefits of increased take-home pay from tax cuts outweighed concerns about stock-market volatility, according to the weekly Bloomberg Consumer Comfort Index released Thursday." (Shelly Hagan, "U.S. Consumer Comfort Rises To Second-Highest Level Since 2001," Bloomberg , 3/8/18)

  • Americans Are "Increasingly Upbeat About Their Personal Finances After Last Year's Tax Cuts Began Boosting Take-Home Pay In January And February." "Americans have become increasingly upbeat about their personal finances after last year's tax cuts began boosting take-home pay in January and February. Full-time workers, married Americans and homeowners all expressed improved optimism, even as President Donald Trump's plans to impose tariffs on imported metals dented stock prices." (Shelly Hagan, "U.S. Consumer Comfort Rises To Second-Highest Level Since 2001," Bloomberg , 3/8/18)

Under President Trump, The Unemployment Rate For Millennials Has Fallen By Over Thirteen Percent

The Pew Research Center Defines Millennials As Anyone Born Between 1981-1996, Or Anyone Aged 21-36. (Richard Fry, Ruth Igielnik, and Eileen Patten, "How Millennials Today Compare With Their Grandparents 50 Years Ago," Pew Research Center , 3/16/18)

  • The Unemployment Rate For 20-24 Year Olds Has Decreased From 8.2 To 6.8 Percent, A 17.1 Percent Drop, Since President Trump Took Office . ( Bureau Of Labor Statistics , 2/2/18)

  • The Unemployment Rate For 25-34 Year Olds Decreased From 4.9 To 4.4 Percent, A 10.2 Percent Drop, Since President Trump Took Office . ( Bureau Of Labor Statistics , 2/2/18)

Wages For Millennials Aged 20-34 Increased By An Average Of $23.50 In 2017, Compared To $15 In 2016

The Average Weekly Earnings For 20-24 Year Olds Increased From $528 To $571, Or By $43 In 2017, Compared To $15 In 2016. ( Bureau Of Labor Statistics , Accessed 3/21/18)

The Average Weekly Earnings For 25-34 Year Olds Increased From $758 To $762, Or By $4 In 2017, Compared To $15 In 2016. ( Bureau Of Labor Statistics , Accessed 3/21/18)

FROM LOWER TAXES TO FEWER HASSLES, THE TAX CUTS AND JOBS ACT HAS HELPED MILLENNIALS KEEP MORE THEIR INCOME AND PURSUE THEIR DREAMS

As A Result Of The Tax Cuts And Jobs Act, The Average Millennial Will Pay A Lower Tax Rate And Keep Over $1,200 More Of Their Earnings

Young People Will Get A Lower Tax Rate Under The Tax Cuts And Jobs Act. "Overall, young people will do alright under this tax plan. You'll still have to pay taxes, of course, but probably at a lower rate -- at least for the next several years." (Anna Bahney, "What The Tax Bill Means For Millennials," CNN , 12/20/17)

The Average Yearly Salary For Persons Aged 24 To 34 Is $40,456, And Under The Tax Cuts And Jobs Act, The Income Tax Rate For Such A Salary Will Decrease From 25 Percent To 22 Percent, A Three Percent Tax Decrease On An Income Of $40,456 Results In A Yearly Savings Of $1,213.68. "The median weekly pay for people 24 and 34 is $778, according to the Bureau of Labor Statistics. Over the course of a year that would amount to $40,456. At that income level, you'll move from a 25% tax bracket to 22% once the new rates take effect." (Anna Bahney, "What The Tax Bill Means For Millennials," CNN , 12/20/17)

Thanks To The Tax Cuts And Jobs Act, Several Companies Who Employ Large Number Of Millennials Will Be Giving Their Employees Bonuses And Raises

Following The Tax Cuts And Jobs Act Apple Gave Its Employees A Bonus Of $2,500 Worth Of Restricted Stock Units, And Pledged To Invest $30 Billion In The U.S. Economy Over The Next Five Years, Adding 20,000 New Jobs. "Apple Inc. told employees Wednesday that it's issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter. The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren't authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees. Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday." (Mark Gurman, "Apple Gives Employees $2,500 Bonuses After New Tax Law," Bloomberg , 1/17/18)

  • The Average Apple Employee Is A Millennial, At 31 Years Old . (Anale Pelisson and Avery Hartmans, "The Average Age Of Employees At All The Top Tech Companies, In One Chart," Business Insider , 9/11/17)

Regions Financial Corporation Raised Its Minimum Wage To $15 An Hour, And Will Significantly Increase Charitable Giving And Investment. "Regions committed to the following actions: Increasing the minimum hourly wage to $15 by the end of 2018. This will benefit approximately 25 percent of the company's workforce and is part of Regions' ongoing effort to provide sustainable career paths and professional growth opportunities for all associates. Contributing $40 million to the company's charitable foundation to support financial education, job training, economic development, and affordable housing, all of which help foster an environment of inclusive prosperity and create shared value for Regions' customers, communities, and shareholders. Increasing the company's capital expenditures budget by approximately $100 million, or 50%, over the 2017 level to support investments in facilities, technology, product innovation, and personalized service to meet customer needs." (Press Release, "Regions Announces Long-Term Investments In Associates And Communities," Regions Financial Corporation , 1/2/18)

  • The Average Age Of A Regions Financial Corporation Employee Is 33, And Would Be Considered A Millennial . ("Full List Of Most And Least Loyal Employees," Payscale.Com , Accessed 3/21/18)

The Tax Cuts And Jobs Act Roughly Doubles The Standard Deduction Which Already "Disproportionately Benefits Young Taxpayers"

The Tax Cuts And Jobs Act Nearly Doubles The Standard Deduction For Millennials No Matter Their Marital Or Household Status. Increases the standard deduction to $12,000 for single filers, $18,000 for heads of household, and $24,000 for joint filers in 2018 (compared to $6,500, $9,550, and $13,000 respectively under current law)." ("Preliminary Details And Analysis Of The Tax Cuts And Jobs Act," Tax Foundation , 12/18/17)

The Standard Deduction "Disproportionately Benefit[s] Young Taxpayers." "When politicians discuss the standard deduction and the Earned Income Tax Credit, they should keep in mind that these policies disproportionately benefit young taxpayers." (Scott Greenberg, "Millennials Pay Very Little In Income Taxes," Tax Foundation , 12/3/15)

The Median Yearly Pay For A Millennial Is $40,456, Which Puts Them In The 25 Percent Bracket Under The Old Law (A Tax Liability Of $10,114) And 22 Percent Bracket Under The New Law (A Tax Liability Of $8,900) For A Single Filer. " The median weekly pay for people 24 and 34 is $778, according to the Bureau of Labor Statistics. Over the course of a year that would amount to $40,456. At that income level, you'll move from a 25% tax bracket to 22% once the new rates take effect." (Anna Bahney, "What The Tax Bill Means For Millennials," CNN , 12/20/17)

  • Under The Old Law A Millennial, With A $10,114 Tax Liability Could Deduct $6,500 And Owe $3,614; Under The New Law The Same Millennial Now Has A Tax Liability Of $8,900 And Can Deduct Up To $12,000, Therefore Owing Nothing, A Savings Of $3,614. "Increases the standard deduction to $12,000 for single filers, $18,000 for heads of household, and $24,000 for joint filers in 2018 (compared to $6,500, $9,550, and $13,000 respectively under current law)." ("Preliminary Details And Analysis Of The Tax Cuts And Jobs Act," Tax Foundation , 12/18/17)

The Average Yearly Salary For People Ages 24 To 34 Is $40,456. "The median weekly pay for people 24 and 34 is $778, according to the Bureau of Labor Statistics. Over the course of a year that would amount to $40,456. At that income level, you'll move from a 25% tax bracket to 22% once the new rates take effect." (Anna Bahney, "What The Tax Bill Means For Millennials," CNN , 12/20/17)

  • In 2016 Of The 14,913,881 Filers Making $30,000-$40,000, 17 Percent Itemized And 82 Percent Took The Standard Deduction. ("All Returns: Adjusted Gross Income, Exemptions, Deductions, And Tax Items, By Size Of Adjusted Gross Income And By Marital Status, Tax Year 2015 (Filing Year 2016)," Internal Revenue Service , Accessed 3/21/18)
  • In 2016 Of 11,642,360 The Filers Making $40,000-$50,000 , 26 Percent Itemized And 74 Percent Took The Standard Deduction. ("All Returns: Adjusted Gross Income, Exemptions, Deductions, And Tax Items, By Size Of Adjusted Gross Income And By Marital Status, Tax Year 2015 (Filing Year 2016)," Internal Revenue Service , Accessed 3/21/18)

As A Result Of The Tax Cuts And Jobs Act, Millennials Will See Their Stress Over A Complex And Costly Tax Filing And Compliance Process Alleviated

74 Percent Of Millennials Have Felt Stress About Filing Their Tax Return Correctly. "A new survey, conducted by United Way Worldwide, finds that 74 percent of millennial respondents indicate they felt some level of stress around filing their returns. The survey of over 1,000 millennials (those between the ages of 18-36) reveals that common stressors include making a mistake (48 percent) and not getting a full refund (23 percent)." (Press Release, "New Survey Finds Majority Of Millennials Stress Over Filing Taxes," United Way , 1/22/18)

  • 80 Percent Of Millennials Are "Concerned" About Filing Taxes, Worrying About Making A Mistake, Or Paying Too Much. "The survey finds millennial taxpayers worry about preparing their taxes - 80% report concerns such as making a mistake, not getting a full refund or paying too much (compared with 60% of adults ages 55 and older), among others. About a third (34%) of millennial taxpayers turn to friends or family with questions instead of tax professionals (27%) or online sources (20%)." ("Millennials Fear Filing Taxes More Than Most Americans, NerdWallet Survey Finds," Nerd Wallet , 2/17/16)

The IRS Has Estimated That On Average Taxpayers Spend 12.5 Hours, And $198 Filing Their Tax Return Each Year. "In a 2013 study, IRS and Treasury analysts estimated that taxpayers spent 1.8 billion hours and $28.3 billion preparing and filing individual income taxes in 2010. These figures correspond to an average of 12.5 hours and $198 per taxpayer." ("Key Elements Of The U.S. Tax System," Tax Policy Center , Accessed 3/21/18)

The Tax Policy Center Estimated That The Tax Cuts And Jobs Act Will Increase The Number Of People Taking The Standard Deduction By 27.2 Million People. "It will encourage more taxpayers to opt for the standard deduction. According to the Tax Policy Center's latest analysis, the number of U.S. taxpayers likely to itemize would fall from 46.5 million - roughly one third of the total - to 19.3 million in 2018, the first year the bill would be in effect." (Shaina Mishkin, Here's How To Tell Whether The New GOP Tax Plan Will Simplify Your Taxes," Time , 12/20/17)

  • Itemizing, And Not Taking The Standard Deduction, Is "A Big Hassle," Significantly Increasing The Paperwork Needed To File A Tax Return. "While itemizing can save you money, it's a big hassle, multiplying the number of forms and other paperwork filers need to send to the IRS. Documenting deductions is a big reason the average American taxpayer spends upwards of two work days on their tax return." (Shaina Mishkin, Here's How To Tell Whether The New GOP Tax Plan Will Simplify Your Taxes," Time , 12/20/17)

By Increasing The Standard Deduction More Households Can Avoid The "Complex" Process Of Deciding If It Is Profitable To Itemize Deductions. "The process of deciding whether to itemize deductions is relatively complex. Households must track and record their relevant expenses throughout the year, consult IRS rules to determine which expenses can be deducted, and determine whether their potential itemized deductions exceed the standard deduction amount. One way to spare many households the trouble of calculating their itemized deductions is simply to increase the standard deduction substantially. The larger the standard deduction is, the more households can safely assume that they will fare better by taking the standard deduction, leading fewer to itemize and making their tax filing process simpler." (Scott Greenberg, "Five Ideas For Simplifying The Individual Tax Code," Tax Foundation , 7/24/17)

PRESIDENT TRUMP IS OPENING DOORS FOR "THE MOST ENTREPRENEURIAL GENERATION EVER" THROUGH LOWER TAXES

Thanks To The Tax Cuts And Jobs Act, Millennials Who Own Or Wish To Start A Business Will Face Lower Tax Rates

Millennials "May Be The Most Entrepreneurial Generation Ever" And Are More Interested In Starting Businesses Than Previous Generations. "Millennials - Americans born between 1980 and 2000 - may be the most entrepreneurial generation ever. A new study shows Millennials have more experience with small business and greater desire to start businesses than previous generations. But the study also demonstrates a continuing need for help for entrepreneurs if they'll create the jobs America needs." (Rhonda Abrams, "Millennials And Small Business Go Well Together, Study Says," USA Today , 5/31/17)

  • A Study By The Center For General Kinetics Found That 62 Percent Of Millennials Aspire To Start Their Own Business, And Almost Half Have Plans To Start A Business In The Next Three Years. "The national study also found that 62% have a dream business in mind that they would love to start, and close to half (49%) intend to start their own business in the next three years." ("Generational Views Of Entrepreneurship And Small Business," The Center for Generational Kinetics , 5/17)

30 Percent Of Millennials Have Already Started A Business, As Opposed To 19 Percent Of Baby Boomers And 22 Percent Of Generation X, And More Than A Quarter Of Millennials "Have Lived Entirely Off The Income Of A Small Business." "Nearly a third of Millennials have already started some kind of business (30% versus 19% for Boomers and 22% of Gen Xers), 38% have been part of a startup, and a full quarter (26%) have lived entirely off the income of a small business." (Rhonda Abrams, "Millennials And Small Business Go Well Together, Study Says," USA Today , 5/31/17)

The Number One Concern Of Small Business Owners In America Was Taxes. "Taxes are the No. 1 concern of small-business owners, according to the first CNBC/SurveyMonkey Small Business Survey, released on Friday. A quarter of small-business owners said that taxes are the most critical issue currently facing their businesses." (Elaine Pofeldt, "Most Entrepreneurs Are Optimistic Trump Will Rewrite Tax Code That 'Strangles Them,'" CNBC , 9/9/17)

  • The Majority Of Small Businesses Surveyed Support Reducing Both Tax Rates And Individual Deductions. "This survey underscores that priority in that a large majority (70 percent) support reducing both corporate and individual tax rates coupled with reducing both business and individual deductions. This was the only broad reform proposal that received the majority of small businesses' support - no surprise given that 83 percent of small businesses are pass-through entities." ("NSBA 2015 Small Business Taxation Survey," National Small Business Administration , 2015)

Ninety-Five Percent Of Businesses Are "Pass-Through" Businesses Rather Than Corporations, They Are Not Subject To The Corporate Tax Rate, Their Income Passes Through To The Owners And Is Taxed At Their Individual Income Tax Rate. "The overwhelming majority of businesses in the U.S. are not C-corporations subject to the corporate tax. Rather, most businesses-about 95 percent-are 'pass-throughs,' which have their income "pass through" to their owners to be taxed under the individual income tax." (Aaron Krupkin and Adam Looney, "9 Facts About Pass-Through Businesses," Brookings , 5/15/17)

  • Under The Tax Cuts And Jobs Act, Pass-Through Corporations Will Receive A 20 Percent Tax Cut. in 'Pass through' companies get a 20 percent reduction: Most American businesses are organized as 'pass through' companies in which the income from the business is 'passed through' to the business owner's individual tax return. S corporations, LLCs, partnerships and sole proprietorships are all examples of pass-through businesses." (Heather Long, "The Final GOP Tax Bill Is Complete. Here's What Is In It," The Washington Post , 12/15/17)

The Tax Cuts And Jobs Act Allows "Allows Full And Immediate Expensing Of Short-Lived Capital Investments," So That Small Business Can Afford To Invest In The Future. "Allows full and immediate expensing of short-lived capital investments for five years. Increases the section 179 expensing cap from $500,000 to $1 million." ("Preliminary Details And Analysis Of The Tax Cuts And Jobs Act," Tax Foundation , 12/18/17)

  • Allowing Business Owners To Write Off The Cost Of Business Investments Fully And Immediately "It Makes It Easier For Entrepreneurs To Invest In Their Businesses." "The tax bill released on Thursday responds to this perspective in several ways. It makes it easier for entrepreneurs to invest in their businesses by implementing full expensing, which allows businesses to write-off the cost of purchases fully and immediately. This stands in contrast to current rules, which set arbitrary standards for business owners to deduct, over time, the cost of their capital investments." (Mattie Duppler Springer, "Perhaps The Biggest Winner From The GOP Tax Reform Bill? Millennials," The Washington Examiner , 11/2/17)

Previous post

President Trump Is Standing Up To China’s Unfair Trading Practices

Next post

Hiral Tipirneni: Out Of Touch With The Voters And Values Of AZ-8
Republican National Committee

Connect With Us

Republican National Committee
Chairwoman Ronna McDaniel
News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com