It may be early in the year, but the race to the 2018 midterm elections is already upon us. Despite the partisan gridlock currently consuming our nation’s capital, many Americans are looking for a reason to be optimistic about our country’s future.
Contrary to what the media reports as an endless string of failed policies, President Trump and Congress delivered a long list of wins for the American people over the past year, most notably passing one of the largest overhauls of our country’s tax code right before Christmas. In and of itself, that is a huge achievement and a much-needed victory for struggling families and businesses across the country.
The past decade has not been conducive to economic growth, harming some of the most vulnerable among us: Small businesses and middle-class families. Between 2007 and 2016, real GDP averaged a dismal 1.51 percent. Coupled with an outdated tax code, those who make up the cornerstone of the U.S. economy have been stuck weathering truly adverse conditions.
Fortunately, those days are behind us. The new Tax Cuts and Jobs Act is going to continue propelling the country forward. In fact, according to a group of economists surveyed by the Wall Street Journal, the tax bill will stimulate GDP expansion by an additional 2.7 percent over the next two years. And the American public is in agreement: A recent CBS News poll shows nearly 67 percent of the country possess a favorable view of the economy.
The tax bill consists of a policy trifecta for job creators: A 20 percent deduction for small businesses, a reduction in the corporate tax rate, and lower individual rates. The 20 percent deduction is the kind of bold change small businesses merit, and it has the potential to save job creators upwards of $63,000. The new corporate tax incentivizes companies to bring jobs back to America and enhance employee incentives, while the lower individual rates are extra savings for families struggling to afford rent or trying to send their children to college.
Job creators across the country are already reacting positively to this news. Apple plans to invest $30 billion in the United States economy over the next five years in the form of capital spending, creating over 20,000 jobs in the process. Walmart announced it was upping the minimum wage for hourly employees to $11 an hour by September 2018 with full intentions of reaching $15 an hour by 2020.
We are even feeling local effects here in North Carolina. Charlotte-based Duke Energy and other public utilities across the state are going to pass their tax savings on to ratepayers, reducing monthly bills and allowing families on a fixed income to experience a little more relief.
As a small business owner in North Carolina, I have similar optimism. I’m currently the president of Artisan Signs in Cornelius, where it is my goal to use this tax cut on my employees and customers. Artisan Signs is dedicated to providing the best value to our customers and the best opportunities for our workers, a task made easier thanks to my new tax savings.
Congress was right to overhaul the tax code because helping job creators helps the rest of the country.
Scott Crosbie is the president of Artisan Signs in Cornelius.