Even before the Tax Cuts and Jobs Act was signed into law, Democrats were spreading fake news about the bill’s effect on small business.
Presidential hopeful Elizabeth Warren said “if Republicans can push through those cuts, it will be devastating to small businesses.” After the bill was passed, Cory “Spartacus” Booker said he wanted to reverse the “devastating piece of legislation” in favor of policy that would “truly help working families and small businesses.”
Over a year later, the Democrats are still lying about the tax cuts. Luckily, small business owners across America know the truth.
The bill reduced income tax rates, expanded small business expensing through section 179, and provided a 20 percent small business deduction.
Business owners are using their tax savings to increase employee wages, hire new employees, purchase new equipment, and update or expand their facilities.
Glier’s Meats in Kentucky is one of many small businesses benefitting from the new tax law. In addition to hiring new employees and giving pay raises, Glier’s was able to reinstate employee health benefits, all thanks to Republican tax cuts.
This isn’t where the good news stopped for Glier’s. The meat company took advantage of the new expensing provision to purchase new equipment, including a $250,000 sausage stuffer, which will double production capacity and shorten the work day for employees.
“We had a number of projects that were seen as something we could consider doing down the road,” Dan Glier, President of Glier’s Meats told the National Association of Manufacturers. “But because of tax reform, it’s possible to reinvest in the plant and in new equipment now.”
Tax cuts haven’t just helped small manufacturers. The good news spans across all industries.
Deckscapes, a design and construction company in Virginia, was able to give employee pay raises, purchase new equipment, introduce a new bonus structure, and start employee IRAs thanks to tax cuts.
“With repealing of regulations and renewed optimism, business has grown considerably over the last year and now with this tax cut, gee-whiz, just the other day we went out with a minimum of 7 percent pay raise to our employees, some of them got higher,” said Gary Desilets, owner of Deckscapes.
“We changed our bonus structure, we’re starting IRAs for all the employees, and went out and purchased a bunch of trucks.”
Booker, Warren, and the rest of the 2020 Democrats should check their definition of devastation and talk to actual small business owners before making any more comments about tax cuts.
Sewickley Spa in Pennsylvania took their tax savings and invested it back into their employees and their small business, providing 2-5 percent pay raises for all employees.
Owner Dorothy Andreas said, “I just want to put it all back into my company, It feels like the government wants to see small business succeed and it’s like a breath of fresh air into a very stale climate.”
Despite the Democrats’ predicted devastation, small businesses across all industries are benefiting from tax cuts.
Changes implemented by Glier’s, Deckscapes, Sewickley Spa, and many other small businesses are not just one time perks. Wage increases deliver for employees paycheck after paycheck. Health benefits and IRAs are long term investments in employees and their families. New hires give previously underemployed or unemployed workers a dependable job. Equipment and facility upgrades mean long term business growth.
The bill lowered the corporate tax rate from 35 percent to 21 percent which directly led to cheaper utility bills in all 50 states. Small businesses often operate under tight margins where each dollar counts, but thanks to Republican tax cuts many are paying less each month in gas, electricity, and water bills. That’s more money that can be directly spent on business growth.
The TCJA also doubled the death tax exemption meaning fewer small businesses will be destroyed by this vicious tax.
Don’t believe the Democrat lies about the tax cuts. Small business owners know the truth, it’s time everyone else does too.