In December the number of net jobs created was 167,000, far exceeding the 100,000 that analysts had predicted. The gains in wages were strong enough to make markets jittery about interest rates.

Has this good news for workers received the attention that one would expect from the Mainstream Media? When Democrats and Republicans have debated the state of the economy and the effect of the tax cuts, what have the talking points been?

Hasn't the main argument from Democrats been that the benefits are going mostly to the rich and the average American worker has gained little?

Let's examine the data on wages and benefits to get the real picture.

Through November 2006 average hourly earnings had increased 4.1%, over the previous 12 months. Adjusted for inflation, that rate has been 2.8%, the fastest rate in six years.

Wasn't it as recent as the 2004 election that we constantly heard the words, jobless recovery? Didn’t Senator John Kerry use those words once or twice? The new net jobs figure is 7 million plus.

Just as in the 1990's, when it took several years for worker productivity to catch up to economic growth, the trend is being repeated.

The highpoint for gains in the 1990's took place in 1997. So even though present gains are about 2% below that highpoint, they are closing in fast. If present tax rates, and business incentives are not tampered with, this decade's gains should surpass those of the 1990's

There has been some cost shifting from employer to employees. There are more 401K's and less traditional pensions-those with defined benefits-than previously. Is there anything wrong with the numerous benefits of 401K's?

Rising health care costs are calling for some increases in co-pays by employees. Should employers be expected to shoulder the full burden?

At any rate the net results for benefits, reported by the Labor Department tells us that benefits have risen at an even higher rate than wages, rising 39% since 2000.

That's the picture for wages and benefits.

Taxes-Take Home Pay

As for taxes, workers have also been able to keep substantially more of what they earn.

At every level of Adjusted Gross Income, the percent of income taxes paid, as well as the actual dollar amount paid, is down. Recall, the Bush tax cuts were in two phases.

Examining for example a taxpayer with Adjusted Gross Income-AGI of $35,000, his/her Final Net Tax, going back to 2000, before each cut, was $2989. His/her Final Net Tax is now $1792, saving that taxpayer $1197 a year.

The Department of Labor has just released December 2006 jobs data. Wage gains are up another 0.5%. The unemployment rate remained very low at 4.5% suggesting a continued tight labor market and continued worker gains, for the foreseeable future.

The 110th Congress convened several days ago. We would be wise to let them know, we would not appreciate any politicking that would slow down the momentum brought about by the recent tax cuts.

Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at http://conservative-politics-infofind.com

http://www.bls.gov/ Bureau Of Labor Statistics For Latest Wage Data