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.
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.
The 2018 tax season has come to a close this week and the Tax Cuts and Jobs Act has given Americans plenty to be grateful for. According to a CNN analysis of President Trump’s tax laws most US taxpayers were winners this tax season. A majority of Americans should have their tax burden decreased by $100 this year. The TCJA has helped families and individuals keep more of their hard-earned money; something all Americans can celebrate.
Even more noteworthy than the early results of tax reform’s impact on the 2018 tax season is the economic boom contributed by tax cuts. The TCJA has helped increase workers’ wages and benefits, increase domestic and foreign investment, will help promote longer-term investment. Big companies have been able to invest more in employee benefits like employee education, increased wages, and pension funding. Despite unsubstantiated and unwarranted criticism, tax reform continues to prove its worth to the American people.
It’s time for the tax reform naysayers to accept the reality of the TCJA’s success. President Trump’s tax reform has been good for workers and businesses alike. Our economy is soaring thanks to the impact of the TCJA.
For the First time since the Great Recession in 2008 lower-end earners are getting greater benefits than higher-end earners. According to the Bureau of Labor statistics earnings rose by 3.4%, which marked the seventh consecutive month that saw earnings increase by 3% or more. This solid growth across income levels is an excellent indicator that our Economy is thriving. CNBC’s Jeff Cox even said that this wage trend could prove that our economy will be able to maintain the growth seen in 2018.
Our economy is not only prospering domestically, but globally as well. The Tax Cuts and Jobs Act has helped the American economy a force to be reckoned with. Thanks to the reduction of the corporate tax rate the American economy has become the most competitive economy in the world. GDP growth went up 3.1% in 2018, wages grew by 3.4%, and unemployment is at its lowest point in the past 50 years.
Many members of Congress are optimistic about the sustainability of this economic surge, despite the Democrats harping on the shortcomings of the TCJA during this week’s House Ways and Means Committee hearing. Representative Kevin Brady is insistent that this economic growth is not the precursor to a slowdown, disregarding the recent assertion that it is nothing more than a “sugar high”.
Tax reform has offered an incredible boost to our economy. Thanks to the TCJA business is booming, and there is no end in sight.
According to a piece from the Hill federal taxes only made up 7.9% of GDP in 2018 instead of the 8.3% in 2016 and 2017. Federal corporate taxes fell by nearly 50% from 2017. This means that tax savings were put towards savings and investments instead of being spent. Thanks to the Tax Cuts & Jobs Act, America is experiencing the highest level of investment since 2001.
In a letter from the York Dispatch, one constituent reached out to his representative, Lloyd Smucker, and thanked him for his work endorsing the TCJA. After helping one of his family friends with their taxes, he calculated that they had saved a whopping $3,300 in 2018 thanks to the TCJA. This is a real-life case that celebrates the triumph of tax reform and the relief this tax cut gave to the working middle class.
Thanks to the great work from congressmen and representatives, like Lloyd Smucker, hardworking Americans are keeping more of what they earn and putting it to good use.