Impacts of the Tax Cuts and Jobs Act of 2017 continue to ripple across the economy. America's small businesses are a powerful group benefitting from this effective policy.
The National Federation of Independent Business(NFIB) tracks optimism among small business owners each month. In May, that index hit its second highest level in recorded history (107.8) and experts say it has to do with Republican-passed tax cuts.
Look at these small business records which were broken in May:
Compensation increases hit a 45-year high
Positive earnings trends reached a survey high
Positive sales trends are at the highest level since 1995
Expansion plans are the most robust in survey history
Small business optimism is an important indicator of the health of our economy. According to the Small Business Association, the nation's 28.8 million small businesses comprise 99.9 percent of all firms and 48 percent of private sector employers.
When small firms report higher sales, they will increase productivity to meet demand and, in turn, increase hiring to increase productivity.
Here's more good news from the NFIB's report:
58% – Businesses reported hiring or trying to hire, but 48 percent reported few or no qualified applicants for the positions they were trying to fill
29% – Businesses reporting openings for skilled workers, the highest reading in 18 years
33% – Businesses reported job openings they could not fill in the current period – historically very high.
35% – Record percentage of all firms that reported compensation increases
19% – Net of small business owners planning price increases, which is the highest in a decade
The NFIB explains why tax changes are so critical:
The Administration and Congress have implemented important policy changes that strengthen the private sector. The new tax code is returning money to the private sector where history makes clear it will be better invested than by a government bureaucracy. Regulatory costs, as significant as taxes, are being reduced.
This is more evidence that pro-growth tax policy works in strengthening American businesses, improving opportunity for workers, and driving our economy forward.