MCMAHON: Trump’s Tax Cuts Have Been A Win For Small Business
As the co-owner of a rock climbing gym, Andrew Kratz is always reaching for even higher goals. This year he and his partners opened Triangle Rock Club’s fourth location, the first outside their home state of North Carolina, and announced plans for a fifth – an expansion that got off the ground thanks in part to the tax cuts President Trump signed into law one year ago.
“We really were able to accelerate our expansion because we were able to expense all the new gym equipment,” he told me when I toured the gym in Raleigh.
Under the new tax law, Kratz will be able to write off the entire cost of the new equipment this year. That’s a big savings for a small business like his, and it’s money he plans to reinvest in his company with a new location and more jobs.
“Without the tax cuts, we wouldn’t be going this large,” he said.
Under the Tax Cuts and Jobs Act, most small businesses are now able to deduct 20 percent off their taxable income even before they get into the savings from the new, lower tax brackets. And for the first five years, they’ll be able to write off any investment in new equipment the year it’s made.
As head of the Small Business Administration, I constantly hear from small business owners like Kratz who are investing their tax savings in their companies and their employees — raising wages, providing bonuses and benefits, and creating more jobs. The unemployment rate is the lowest it’s been in nearly 50 years, and for the first time on record, there are more job openings than people seeking jobs. Our nation’s gross domestic product (GDP) is on pace to grow by more than 3 percent in 2018. And with the corporate tax rate cut from 35 percent to 21 percent, American businesses are more competitive – spurring investment in America and repatriating trillions of dollars previously held overseas.
It’s clear from these historic results that the tax cuts are igniting economic growth. Families are seeing real savings thanks to the doubling of the child tax credit and a near-doubling of the standard deduction. Many are even seeing lower electric bills, with more than 130 utility companies pledging to pass their tax savings to their customers through lower rates.
With confidence in their jobs and more money in their pockets, consumers are spending. In October, consumer confidence reached its highest level in 18 years. That’s great news for America’s small businesses. In surveys done by the U.S. Chamber of Commerce, NFIB and the National Association of Manufacturers, members have reported record or near-record levels of optimism. The SBA is seeing that optimism in the form of the loans we guarantee. Since President Trump took office, the SBA has provided loan guarantees of more than $60 billion to small businesses, supporting more than 1.2 million jobs.
During my tour of Triangle Rock Club, I learned that when you’re climbing a rock wall, it’s critical to have support – someone looking out for you so you can achieve your goals without unnecessary risk. With these tax cuts and the rest of his pro-growth agenda, President Trump is proving he’s got the backs of small business owners.
“President Trump’s support of small business, not just with words but with his actions, that’s the difference,” Kratz told me. “Previous administrations would talk a big game about helping small business, but this president has done exactly that.”
Linda McMahon has served as President Trump’s administrator of the Small Business Administration since 2017.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.