Small Businesses and Workers Benefiting from Tax Cuts
BY: SBA Mid-Atlantic Regional Administrator Michelle Christian
President Donald J. Trump had taxpayers and small business owners in mind when he signed the Tax Cuts and Jobs Act (PDF) into law December 22, 2017. The new law cut corporate tax rates from 35% to 21% for 2018 and lowered income tax at nearly all levels. Tax cuts for working families allow them to keep more of their hard-earned money and provide more opportunity for everyone to achieve the American dream.
Cutting back taxes for American business owners allows our nation of entrepreneurs to grow the economy from within while competing globally with international businesses interests. A lower tax rate opens the door to new and better opportunities. It also enables employers to reward their employees with higher wages, bonuses and better benefits, which frees up hard-earned capital for growth-minded businesspeople to reinvest in their companies by hiring more workers, buying better equipment, and building new facilities.
The new tax cuts are applied nearly across the board, but with emphasis on businesses that are key to stimulating economic growth as a benefit to the whole country. Lower taxes mean more of our own money is free for us to grow and create jobs ourselves. When we pocket more of our salaries and more of our business profits, we are more likely to spend that “newfound” money, which continues to bolster the economy so we all benefit from this increase in our “bottom line.” As I travel across SBA’s Mid-Atlantic Region to speak with business owners, they tell me they are using these tax savings to reinvest in themselves, and their communities.
As a direct result of the new tax law, Dollar Bank in Pittsburgh earlier this year announced $2,000 permanent raises for their employees making $60,000 or less per year – about 60% of their 1,300-person workforce. NexTier Bank in Butler, Pennsylvania paid out $1,000 bonuses for all employees and is using their tax cuts to fund tuition reimbursement, on-the-job training and wage raises for hourly employees.
Please be sure to think ahead about how this tax relief law affects you and your community. Look over the new tax rules with your accountant if you use one, or speak to one of the thousands of SBA-sponsored SCORE mentors or with your local Small Business Development Center for advice on the next steps for your small business. Take advantage of the extra money in your pocket and reinvest in yourselves, your business, and your country. We have a great opportunity to once again prove what small businesses can do for the economy when we remove barriers to their success.
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