Back in 2017 the Tax Cuts and Jobs Act enacted a temporary reduction in federal taxes on beer, wine and spirits. Now, as a result of the incredible success of the TCJA, Congress is considering making those cuts permanent.
The TCJA had great impact on all lines of the supply chain of the industry. They allowed everyone from farmers and bottlers to truckers and distributors, a chance to invest and grow, both internationally and on US soil.
According to the Beer Institute, the beer industry provides more than 2.2 million American jobs, generating more than $350 billion in economic output. Overall, the cuts from the TCJA were estimated to save the industry $130 million per year. If these cuts become a permanent feature of tax legislation, the industry can continue to grow, employee more workers and create benefits for communities nationwide.
“As a manufacturer and brewer in the United States, we’re pleased to see the tax break on brewers large and small reintroduced,” said Anheuser-Busch Chief External Affairs Officer Cesar Vargas.
The beverage industry is just one of many US industries that have thrived under the TCJA. These reforms continue to help businesses, both small and large, which in turn continues to give people across the US a chance to live their American Dream.
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.
The 2017 Tax Cuts and Jobs Act (TCJA) has become a beacon of hope and integral to a vital economic upturn for the town of Springfield, Vermont. For generations Springfield, Vermont, which lies close to the border of Vermont and New Hampshire on the Connecticut River, was the home to a booming manufacturing industry.
However, the economic backbone of this community began to falter in the 21st century as the manufacturing business moved overseas.
Bob Flint, the executive director of the Springfield Regional Development Corporation, said that the tax break incentive for small businesses and the newly introduced Opportunity Zones provided by the TCJA, have “stimulated really interesting projects.”
In Springfield, two multi-unit residential properties have already been purchased through this zoning program. Local supporters have suggested that limited regulatory restrictions provided by the TCJA have led to an increased ease in setting up businesses, and therefore the great success of these zones. Going forward, there is continued optimism about the opportunities for these zones provide, including growth of small businesses, job creation and affordable housing projects across the state.
The TCJA is making it easier for every day Americans to pursue the American Dream and start their own businesses. Springfield, Vermont is one of many examples of cities and towns across America being revitalized because of the TCJA.
The effects of the 2017 Tax Cuts and Jobs Act (TCJA) continue to ripple through the economy with the U.S adding 130,000 jobs in August. According to the U.S. Bureau of Labor Statistics the unemployment remains at the low rate of 3.7 percent while the labor force participation rate rose to 63.2 percent in the past month.
In addition to job creation, August saw the largest gain for average hourly wages in the past year: 11 percent. Wages have now grown 3.2 percent over the past year and are integral evidence of a strong economy. For people across the country wage increases have been a continued result of businesses having more money in their pockets due lower tax rates from the 2017 TCJA.
A year and half after its implementation it is clear that the 2017 TCJA continues to help people all over the nation gain jobs, increase wages and overall, live better lives.
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.