Mission Produce, an avocado distributor based in Oxnard, California, is rewarding employees in response to the ongoing effects of the Tax Cuts and Jobs Cuts Act of 2017. Mission’s President and CEO Steve Barnard said from the outset of the changes he was able to give “all our U.S.-based employees a US$1,000 bonus.” Moreover, Mission said it has been able to implement a new pay scale for their many seasonal employees, increasing hourly wages by up to US$2 an hour as result of increased profit from lower taxes. He said “it’s only fair that we share the benefits that tax reform will have on our business with our valued employees.”
Beyond their employees, Mission is using this extra money to invest in their business and as a result the U.S. economy at large. Barnard stated that he plans to invest the tax savings in new facilities and technology to create opportunities for the company. Tracy Malmos, Mission’s chief people officer added “We are expanding production and distribution facilities across the United States and investing more at home than internationally. We recognize the hard work done by Congress in passing this landmark reform.”
Mission’s story, and thousands more like it, are evidence of the lasting success of the TCJA. These historic tax reforms are changing the lives for Americans across the country and are leading to higher wages, strong businesses and continued investment on our soil.
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.
Small businesses are doing better than ever thanks to President Trump’s historic tax cuts. Gallup recently released their quarterly Small Business Index survey. The overall index is +136, up from the +129 in Quarter 2. 58% of small business owners say their revenues increased in the past year, and 64% say they expect revenues to continue increasing.
Small businesses feel optimistic about their businesses, and the survey shows that this is mostly a result of a thriving national economy. 70% of owners think the US economy is excellent or good. The Tax Cuts and Jobs Act has created an environment that allows small businesses to remain competitive. Not having to worry about paying a high tax bill on top of the many other expenses that come with owning a small business is a major relief.
It’s often said that small businesses are the backbone of America. But big government hasn’t always done all it can to make things simpler for these smaller enterprises. Fortunately, the Tax Cuts and Jobs act has changed that for small business owners across the country.
After years of stagnation a mother daughter business that started in their garage is finally getting a break. The TCJA cut their rates, which allowed them to increase wages, ramp up employment, and grow their product line. All of this has helped them make significant investments in the family business and allowed them to give back to their community.
This is one of thousands of real life stories of people benefiting from the TCJA. Small businesses have been able to hire people at the highest level in 45 years, meaning more jobs and better wages.
Thanks to the TCJA Unemployment is at its lowest level since 1969 at 3.6 percent. In April alone, the U.S. economy added 263,000 new jobs. On top of that, America’s first quarter GDP grew by 3.2 percent; marking the first growth over 3 percent since 2015. Finally America is looking out for small business owners and ushering in a new era of economic growth.
According to CNBC, job openings are at a record high. The Labor Department claims that the reported 7.3 million open jobs in December was the highest in the past two decades. If that news wasn’t big enough, the Commerce Department also reports that America’s fourth-quarter GDP increased 2.6%, outperforming original estimates.
The Tax Cuts and Jobs Act (TCJA) has undoubtedly played a major role in improving the economy since the bill was passed in December of 2017. Companies of all sizes are able to hire more employees, provide higher wages and bonuses, and fund improvements to their businesses thanks to the TCJA.
American business owners would like to thank Congress for their efforts in promoting the economic growth. We hope Congress continues to work on behalf of businesses, small and large, to ensure more growth, and protect us from burdensome regulations that would damage this economic prosperity.
This news also comes at a time when some members of Congress are already seeking to raise taxes in order to fund other projects. This would be a harmful misstep that would have massive implications for the business community across the country. We are starting to reap the benefits of tax reform and to undo it would harm every business in the country.