Small businesses are better off thanks to the 2017 tax cuts according to those with their finger on the pulse of our nation’s biggest job creators.
In more evidence of the positive impacts of the Republican-passed Tax Cuts and Jobs Act (TCJA), we now understand how small business fared following tax reform.
The Job Creators Network polled over 100 Certified Public Accountants who represent over 5,500 small businesses (pass-through companies).
8 out of 10 (79 percent) said the TCJA helped small businesses.
3 out of 4 (76 percent) said the TCJA stimulated the overall economy.
These data points provide valuable insight into a community that is critical to the success of our economy.
Small businesses are often called the nation’s economic engine.
According to the Small Business Association, there are over 30 million small businesses and they account for 99.9 percent of all businesses. Small businesses created 1.9 million new jobs – or 70 percent – of all new jobs in 2015.
It’s not a stretch to say that what helps small businesses helps the whole economy.
The 2017 tax cuts did just that.
Pass-through small businesses are entities, such as sole proprietorships, partnerships, LLCs and S corporations, which don’t pay corporate income taxes but whose owners are directly taxed individually on the income their businesses generate.
Pass-throughs benefited from important changes including a new 20-percent small-business deduction for entrepreneurs to shield some of their income from taxes.
By being able to keep more of their revenue, small businesses owners reinvested in growing their expanding their operations and growing their businesses.
Here’s an example:
“Guy Berkebile, owner of Guy Chemical in Somerset, PA, who testified in front of Congress about the impact of the tax cuts legislation in February. Because of the new measures in the tax code that directly apply to small businesses, he was able to hire 29 new employees, distribute larger bonuses, expand production, and build a new facility.”
Guy Chemical is not alone. Millions of American workers received bonuses, salary increases, and new benefits like paid leave directly because their employers gained tax relief from the 2017 tax cuts.
This is a reminder that smart tax policy can unleash greater economic growth and opportunity for Americans. Each day brings more news of just how.