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.
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.
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.