Since you are reading this, you are probably a business owner or a prospective business owner, which makes this more of a reminder of the many advantages of the tax cuts that occurred and have helped businesses during the past year. Those who were not businessmen and women seemed to have difficulty understanding how cutting taxes for businesses of all sizes would improve our economy while making businesses, employees, and others more profitable. Along with the tax cuts, many regulations were cut, simplifying business ownership. While the long-term advantage is great, it didn’t take long to start seeing results.
Because there is more money to spend or save, some of the advantages we have seen include the following:
- Many businesses have given bonuses to employees and also increased wages. I heard recently that over six million workers have benefited from that. This increases confidence and security in employees, causing them to realize their importance to the owners. When employees feel appreciated and are able to share in the profit of a business, they are happier and work harder. They also make positive comments about the business to friends and others outside the business, which will likely lead to a larger customer base and more profit.
- Businesses will see more benefits when preparing 2018 income taxes. After struggling for the past few years, they will now be able to purchase needed equipment and can deduct from their income tax all of the income invested in that equipment. This can be huge for many businesses.
- Many manufacturing businesses were forced to shut down, including the steel industry. They are now not only reopening but are increasing in size. This has and is allowing many employees to return to their jobs and is having big impact on cities and states with lots of manufacturing.
- Utility companies are lowering bills because of tax cuts. This is another way businesses are keeping more of their money. Because most businesses depend on others for goods or services, the benefits of tax cuts help all of us.
- All businesses must have customers for their goods or services, so their desire and ability to purchase is crucial for the success of businesses. There are also tax cuts for individuals, providing more money for them, along with the benefits they receive because of the business tax cuts. The repeal of the individual mandate for Obamacare is a nice relief for many Americans, and there is still hope to get a complete repeal and replacement and a better plan.
- A big relief for farmers and ranchers, which are businesses, and some other businesses, is no longer having to pay the estate tax, sometimes called the death tax.
Electing a President of the United States who is a successful businessman has proven to benefit all of us. His pro jobs, pro workers, and pro American attitude are refreshing as we watch our economy grow and gain the feeling of unlimited potential after many years of frustration. Yes, this is a good time to own a business, and the future looks bright. Our leader is strong and a proud American!
Individuals have also received tax cuts and are benefiting from the increase in wages. People who have been unable to find employment are now employed and have money to spend, which helps to make our economy grow. With the lowest unemployment rate and the highest growth rate we have seen in many years, our economy looks really good.
