Tax Cuts and Regulatory Reforms are putting the Economy on the Right Track
BY: SBA Mid-Atlantic Regional Administrator Michelle Christian
While working for his family’s cleaning business, Guy Berkebile mixed chemicals in his bathroom to create better household products. This industrious spirit led him to mortgage his house and withdraw his entire life savings to pursue a dream. In 1995, he opened Guy Chemical Company, Inc. in a 3,000 square-foot rental space with the cheapest equipment he could find.
To make loan payments during the lean years, Berkebile kept his day job and spent evenings and weekends mixing and packaging his products – even hosting slumber parties for his kids while pulling all-nighters. Through hard work and vision, Guy Chemical expanded into a global company, occupying 40,000 square feet in Somerset, Pennsylvania, to accommodate growing orders.
Now, Berkebile is taking advantage of capital freed-up by the 2017 Tax Cuts and Jobs Act to invest in new equipment, and is ready to expand to 70,000 square feet. He purchased a 20-person company in Vermont, grew staff from 130 to 161 employees, and increased annual worker bonuses by as much as 50 percent with raises all around thanks to a 30% increase in sales he attributes to tax cuts.
President Donald J. Trump had taxpayers like Guy Berkebile in mind when he called for and signed the tax law last year, cutting corporate tax rates from 35% to 21% for 2018 and lowering income tax at nearly all levels. Tax cuts allow 30 million small businesses to plan more effectively and reinvest in their companies by expanding, hiring more employees and raising wages. To put it plainly, Americans are seeing more money in their paychecks following the cuts, and more than six million American workers have seen bonuses as well. That’s money spent on Main Street and stimulating the economy, putting kids through school, paying bills, and finally getting heads above water.
It’s working. The American economy is booming with the number of job openings surpassing the number of job seekers for the first time on record, and September’s unemployment rate was at 3.7%, – the sixth straight month at 4% or below. Smart, business-friendly decisions have brought manufacturer optimism to a near-record level in the 20-year history of the National Association of Manufacturers’ survey, and small business optimism stands at its third highest level on record since the National Federation of Independent Business began its survey 45 years ago.
The SBA is here for small businesses because we understand they create two of every three new jobs in our country and are a source of stability and pride for our communities. Locally-owned businesses hire local and are more active in our communities; from mentoring other entrepreneurs to sponsoring local teams and more. And, statistically, more locally-owned business earnings stay local to support everything from schools to infrastructure. I promise each and every one of you that our SBA team will continue to keep this Administration’s commitment to empower entrepreneurs.