Small Businesses Across America Seeing Benefits From Tax Reform
‘From coast to coast, Americans’ lives will improve as Main Street businesses operate for the first time under a twenty-first-century tax code. This is not just a tax law for the big guys. Now even the smallest businesses will be able to take a significant deduction on their business income, giving them more money to buy new equipment, hire a new employee, or provide health coverage for their team.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks today on the Senate floor regarding the benefits Americans continue to see across the country thanks to tax relief:
“On Tuesday, President Trump will deliver his first State of the Union address. He’ll have good news to deliver on a variety of fronts. I’m particularly looking forward to his remarks on our economy. Consumer confidence is up. Unemployment is down. Markets are breaking records. From small businesses to our largest job creators, pay raises, bonuses, and plans for new investments are in season.
“Of course, the engine of American prosperity is the American people. But smart policy can help by getting the government out of their way. Last December, Republicans in the House and the Senate joined the president to deliver once-in-a-generation tax reform.
“Every day, more evidence piles up that tax reform is already working for the American people. The headlines are full of major employers announcing pay raises and bonuses for workers, as well as new investments.
“For example, Brown Forman — a global spirits company headquartered in Louisville that employs more than 1,000 Kentuckians — announced yesterday that tax reform will help the company to start a new charitable foundation for community investment and commit $120 million to fund employee pensions.
“Soon, thanks to tax reform, a Main Street small business owner will finally be able to realize her dream to expand into the vacant shop next door. Of course, that’ll mean hiring more help. Soon, thanks to tax reform, a father-and-son manufacturing plant will be able to afford the new equipment they’ve been eyeing and give their workers new skills in the process. Stories like these may not make waves here in Washington. But believe me, they will be front-page news in communities all across America.
“From coast to coast, Americans’ lives will improve as Main Street businesses operate for the first time under a twenty-first-century tax code. This is not just a tax law for the big guys. Now even the smallest businesses will be able to take a significant deduction on their business income, giving them more money to buy new equipment, hire a new employee, or provide health coverage for their team.
“So much focus has been on bonuses, pay raises, and 401K matches, and for good reason. But we should not forget all of the jobs that will be created when businesses decide to invest more because they can immediately deduct their capital expenditures.
“I’m already hearing from the small business owners this law was designed to help. Before tax reform, one franchise restaurant owner in Kentucky wrote me to say that, quote, ‘the current high tax rate that I pay as a pass through entity reduces the amount of earnings I can reinvest into my businesses, employees, and community.’ She went on to say, quote, ‘I am very encouraged that tax reform is underway in Congress and hope that it can be accomplished in a timely manner.’ Republican majorities in Congress and the president did just that.
“In Nicholasville, Kentucky, another constituent of mine operates a rental business for event equipment. He recently explained, quote, ‘The relief that will be provided by the new tax bill gives companies like mine the capital to purchase new inventory…as well as hire additional employees.’ American enterprise is thriving. Tax reform helped make it happen.”
Related Issues: Economy, Tax Reform, Small Business, Taxes