Tax Cuts and Jobs Act Working for Countless Small Businesses
WASHINGTON – Today, the House Committee on Small Business heard from a panel of experts and small business owners about the benefits of the 2017 Tax Cuts and Jobs Act.
“When small business owners are using the Tax Cuts and Jobs Act to reinvest in their companies, their employees, and their communities, the intended effect of that legislation is being realized all across America,” said Ranking Member Steve Chabot (R-OH). “As a result, the small business economy is healthier now as compared to a few years ago.”
With Savings, Businesses Can Reinvest in Their Employees
Describing the growth of his family’s construction company, Mr. Justin Conger, President, Conger Construction Group, in Lebanon, OH, said, “From 2016 until 2018, I am proud to say our business has grown 110 percent. This growth would not be possible without the Tax Cuts and Jobs Act of 2017.”
Mr. Conger testified that his company reinvested savings from the tax cut into hiring, wages, renovation of the company headquarters, and other capital expenditures. “Since 2016, we have increased our employee head count, from 28 full time equivalents (FTEs) to 48 FTEs… We have increased our wages by over $1.5 million and in 2017 and 2018, we have paid out over $381,000 [in bonuses],” said Mr. Conger.
Republican members of the Committee echoed Mr. Conger’s success with stories from their own districts. Rep. Pete Stauber (R-MN) said, “There’s a brewery in Two Harbors which shared with me that they were able to save [almost $60,000] because the federal tax on a barrel of beer was cut in half. A leading outdoor furnace manufacturer has added seven new positions at their small business thanks to the savings from the Tax Cuts and Jobs Act.” Rep. Ross Spano (R-FL) said, “Two senior helper franchises saved $3,200 and $4,400 in taxes. One local restaurant saved $2,800 in taxes on just the 20% pass-through deduction benefit.”
Need for Permanent Tax Relief
The witnesses emphasized a need to make the tax cuts permanent. Mr. Grafton Willey, IV, CPA and Small Business Owner, Sole-Proprietor, in Portsmouth, RI, said, “The doubling of the Section 179 deductions and the immediate expensing provisions are a positive improvement to our tax system. The fact that these provisions are set to expire in 2025 should be addressed. They should be permanent to enable Small Businesses to do long term planning.”
Mr. Muneer Baig, Founder & CEO, SYSUSA, Inc., in Manassas, VA, said, “The problem, however, is the temporary nature of some of the new deductions… Businesses investing their savings now may not have extra cash two to three years to continue investing.”