The holidays have come and gone, but our gratitude for tax cuts must remain stronger than ever. We will reap the benefits for years to come.
After more than three decades of high rates and a complex filing process, the Tax Cuts and Jobs Act takes $1.5 trillion out of the Washington swamp and sends it back to working Americans—the largest tax overhaul since the Reagan years.
The final bill, which President Trump signed before Christmas, will slash the corporate tax rate from an uncompetitive 35 percent—the highest rate in the developed world—to a much fairer 21 percent. This will level the playing field for U.S. firms competing against their global counterparts, leaving them more resources to fund capital investment and grow the economy.
But small businesses have perhaps even more to celebrate. Under the Republican plan, America’s smallest firms—which account for two-thirds of new American jobs—are awarded a new 20 percent deduction on their first $315,000 of family income. They also receive immediate expensing and a full deduction of their interest costs. These provisions incentivize small business owners to write off the total cost of business expense in a given tax year instead of spreading tax savings out over numerous years with a depreciation schedule. In real terms, they allow job creators to save money on a new oven, delivery vehicles, or added storefronts.
Most importantly, tax rates are now lowered across the board, including the elimination of the 15 percent federal rate in favor of a vastly expanded 12 percent rate.
As a longtime job creator myself, I can confirm that pro-growth tax cuts do indeed fuel business expansion and new hirings. I’m a third-generation owner of Michigan-based Vesco Oil Corporation, one of the largest distributors of automotive and industrial lubricants and supporting services in the country. Vesco currently employs more than 200 workers, providing financial stability for our employees and their families across Michigan.
The Tax Cuts and Jobs Act will encourage small businesses like Vesco to ramp up investment in research and development, while opening the door to expansion opportunities. When we are left with more of our business income, we spread the new wealth to our current and future workers, knowing all too well that they are the reason for our continued success.
And Vesco is only one small business. America is home to nearly 30 million small businesses, employing 60 million workers—half of the U.S. workforce. In fact, nearly 99 percent of all American firms are small businesses.
Without them, our economy falls apart. But when they see new tax savings, our small businesses can power the economy to new heights.
This is not just a talking point. According to the Tax Foundation, the United States will see nearly 340,000 new full-time jobs as a result of the Republican tax plan, gifting an average American family about $650 in after-tax income. You will see a stronger labor market and larger paychecks.
Washington can help working Americans — by getting out of the way. That’s exactly why I’m running for Michigan’s 11th congressional district. Most of our lawmakers have never created a job. But pro-growth reforms like the Tax Cuts and Jobs Act can yield real-world benefits to employees in Michigan and across the country. I will make it a mission to continue cutting taxes, trimming burdensome regulations, and standing up for our nation’s most dedicated job creators.
The holidays may be over, but let’s give thanks to President Trump and Republican leadership — and the lower taxes that await us.
Lena Epstein is a Republican candidate for Michigan’s 11th congressional district and co-owner of Vesco Oil Corporation.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.