Businesses are thrilled over the positive benefits tax reform is continuing to provide for them. Hancock Lumber, a 171 year old Maine based lumber company, shared with the National Association of Manufacturers this week how it was able to accelerate its plans to grow and invest in its business because of tax reform.
“It’s pretty straightforward,” said Hancock Lumber CEO Kevin Hancock. “As a result of tax reform, our cumulative tax rate fell from 38 percent to 28 percent. We’re keeping a dime-on-a-dollar more of our earnings. And we’ve reinvested 100 percent of that back into the business.”
The company has also made a commitment to invest in its employees. Hancock said that in the last year following the historic Tax Cuts and Jobs Acts, Hancock Lumber has increased wages, increased 401K contribution, and increased annual bonuses.
“Tax reform is allowing us to do in three years what might’ve taken us four to five years to do otherwise. That’s pretty significant,” Hancock said in his interview with the National Association of Manufacturers. Hancock Lumber is just one of many examples of tax reform creating a better workplace environment as well as more opportunities for businesses to thrive.
Businesses are moving back to America as job numbers continue to grow. Last week, pharmaceutical company Mylan announced it would be moving back to the U.S. in a merger deal with part of Pfizer Inc.
This is a continued sign of the Tax Growth and Jobs Act creating a thriving economy in the U.S., and making U.S. businesses more competitive in the international market.
Tax lawyers and analysts say that after the U.S. corporate tax cuts in the 2017 law, the edge between the U.S. and foreign rates is small enough that companies are not wanting to risk the reputational and political costs of moving abroad.
In addition to the announcement of Mylan moving back to the U.S., the July jobs report shows that payrolls increased by 164,000 and wages increased by 3.2%. The U.S. labor force is at a record-high with over 163.4 million people with jobs.
The TCJA continues to be a major success for America and Americans. It’s time for TCJA’s critics to accept that tax reform has been great for workers and businesses alike.
Americans are continuing to benefit from a robust economy nearly two years after President Trump’s historic Tax Cuts and Jobs Acts (TCJA). This week the Bureau of Economic Analysis announced that the GDP increased at a rate of 2.1% during the second quarter of 2019.
Disposable personal income also increased in the second quarter by 4.9%, or $193.4 billion. That is $193.4 billion in the hands of the American people to decide how they want to spend it and what they want to spend it on. When the people get to decide how to spend their money, America’s economy thrives.
The TCJA has promoted growth for the U.S. economy by creating jobs, growing paychecks, and strengthening American communities. Americans benefit when they get to keep more of their hard-earned money, rather than paying outlandish tax rates.
The U.S. is in the midst of the longest economic expansion in history, and in order to keep this momentum going, lawmakers must keep tax rates competitive.
As the Democrats continue pushing for higher taxes on the campaign trail, the Tax Cuts and Jobs Act (TCJA) proves that lower taxes help businesses grow and create new jobs for Americans. Under the TCJA, we have seen historic economic growth, unemployment rates have drastically decreased, and income continues to rise.
This month, the Fed has announced that the U.S. economy continues to have a positive outlook. “The outlook generally was positive for the coming months, with expectations of continued modest growth, despite widespread concerns about the possible negative impact of trade-related uncertainty,” according to the report Wednesday in Washington.
Not only are we creating more jobs, but people are spending more. The Feds have reported that retail sales have increased overall. Americans are feeling the benefits of small government, and businesses are thriving because of it.
Because of the great economic output from TCJA, the Feds are expected to reduce interest rates by a quarter point soon. The economy continues to grow, businesses continue to thrive, and the TCJA continues to positively impact American’s and America’s economy.
Last month, we heard from Democratic Presidential Candidates that they would raise tax rates if and when they took office. Clearly this would be a mistake because the economy has been rolling since the Tax Cuts and Jobs Act (TCJA) was passed in late 2017.
The June jobs report showed that nonfarm payrolls rose by 224,000, which was well above the market expectations. Unemployment is still at a near 50-year low. These numbers eased recession fears and showed that the U.S. economy is still thriving. Average hourly wages also continued to show growth this month, up 6 cents to $27.90.
This payroll growth is the best gain since January of this year. Professional and business services led the job increases, adding 51,000 to their payrolls, while health care added 35,000 and transportation and warehousing added another 24,000. Construction added 21,000 to its payroll, and manufacturing added 17,000 jobs. The labor force continues to grow, unemployment is staying low, and jobs continue to be created. This is the longest period of economic expansion on record, according to the head of global markets at Citizens Bank, Tony Bedikian.
Thanks to the TCJA we are seeing a thriving economy. President Trump’s tax reform has created the best environment for business and economic growth in years.