The Latino community powers the U.S. economy, fueling billions in revenue, millions of jobs, and a vibrant network of small businesses. Yet years of inflation and economic uncertainty have dimmed hope for many, with most Latinos feeling the American Dream is slipping out of reach. Congress has a chance to change that by extending the Tax Cuts and Jobs Act of 2017 — a proven policy that lifted families, spurred growth and gave hardworking Americans a shot at prosperity.
The Tax Cuts and Jobs Act simplified the tax code, lowered rates for all income levels and unleashed opportunity. It delivered results: real median household income rose, unemployment hit historic lows, and businesses — small and large — invested in jobs and innovation. For Latinos, the impact was striking. Hispanic unemployment dropped to 3.9 percent in 2019, and median household incomes climbed by nearly $5,000 in just two years. Small businesses, including the one-in-four new ventures owned by Latinos, found room to grow, contributing over $800 billion annually to the economy.
Manufacturing also thrived. In 2018 and 2019, the sector added roughly 20,000 jobs monthly — more than double the prior four-year average. Capital investment surged, with spending up 4.5 percent in 2018 and 5.7 percent in 2019, compared to 1.4 percent in 2017. These gains strengthened communities and fueled opportunity for workers and entrepreneurs alike.
These tax cuts also supercharged American competitiveness in the global economy. Businesses had the space and support to thrive, which stimulated the economy and supported all Americans.
All this progress is now at risk. If Congress lets the Tax Cuts and Jobs Act expire, taxes will spike at a time when families and businesses can least afford it. The National Association of Manufacturers projects a loss of 5.9 million jobs, $540 billion in wages and $1.1 trillion in GDP if the cuts lapse. Small businesses could face tax rates as high as 43.4 percent, and a typical family of four might owe an extra $1,500 annually — more in states like California and Florida, home to millions of Latinos. For Latino-owned businesses, which drive growth and jobs, higher taxes could stifle innovation and hiring.
Expiring tax cuts also threaten America’s global edge. Industries like technology, biopharmaceuticals and manufacturing rely on Tax Cuts and Jobs Act incentives to fund research and keep operations stateside. Without them, firms may move overseas, taking jobs and economic vitality with them. And in a time of fierce global competition, it’s more critical than ever that our businesses remain on American soil — we can’t afford to lose that advantage.
When American industries are at the forefront of the worldwide market, American workers and our economy see the benefits. Extending the Tax Cuts and Jobs Act isn’t about politics — it’s about people. It’s about giving families breathing room, businesses and entrepreneurs a chance to scale, and workers a path to stability. Latino communities, like all Americans, thrive when policies reward effort and ingenuity. Congress can send a clear message: the American Dream is still within reach for those willing to work for it.
Let’s seize this moment to empower families and businesses. Extend the tax cuts and let opportunity flourish again.
Jose Mallea is Managing Partner of Forward Global Miami, and the former CEO of the Libre Initiative, the largest Latino free market advocacy organization in the United States.
