Friday is the six-month anniversary of the passage of the Tax Cuts and Jobs Act—legislation that has provided financial relief to millions of small businesses and individuals across the country.
The new tax code has given small business owners the opportunity to reinvest back into their businesses by hiring new employees, purchasing new equipment, raising wages, and expanding operations. And small business optimism is near an all-time high because of it. It is truly allowing America’s small business community to flourish.
I am proud to be a part of this small business family. I own and operate a Mr. Transmission small business franchise, as well as run Moran Family Brands—an organization that offers franchise opportunities to bucking and determined entrepreneurs. This franchise model is truly the heart of American entrepreneurial strength and will continue to be at the center of economic advancement.
The spur of small business optimism that began earlier this year and continues to date was largely a result of the tax cuts that passed about six months ago. It’s had real impacts on real small businesses. In fact, Americans for Tax Reform has compiled a list of over 600 companies and 4 million employees that have benefited from the tax relief package.
On a larger macro scale, the national economy is experiencing the benefits as well. The latest data from the Bureau of Labor Statistics reveals continued job creation, a quickening of the wage growth, and the lowest unemployment rate of the century. And many economists are predicting gross domestic product to grow at a rate of over 3 percent—a big improvement from just two years ago when growth was half that.
However, some in Washington don’t believe these benefits and economic advancements are worth preserving—instead, pledging to repeal this pro-jobs, pro-growth legislation.
But all hope is not lost. While anti-small business politicians mull over removing the tax cuts, others are advancing an agenda that would expand them. New tax cut legislation could come as early as this summer. First and foremost, it would make all of the measures passed in the previous tax bill permanent. While the corporate tax cuts contained in the 2017 tax relief bill are already permanent, the new lower rates that largely apply to small businesses are set to expire in 2025.
But legislators don’t have to stop there. They can further reduce the pass-through tax rates applied to small businesses. If current economic conditions are largely the result of the previous tax cuts, further tax relief will surely amplify the positive impacts.
Six months removed from its passage, it’s obvious that the Tax Cuts and Jobs Act is a boon for American small businesses. Hopefully, plans to derail the progress don’t come to fruition and even more small business tax reform can be pursued.