It is often difficult for some people to explain the benefits of the tax reform that Republicans passed late last year. However, here’s one story that does just that…
There are people in America who believe that they are entitled to the fruits of other people’s labor.
And, there are other people still who do not understand that, when a business does not have to give the government as much of its earnings, said business will typically reinvest the money into the business through capital improvements, giving pay raises, as well as hiring employees.
A case in point would be how this Texas company has more than doubled its workforce—changing 80 working families’ lives—since 2016, in large measure due to the fact that the government is not taking as much money from the company.
via the Daily Signal:
“The tax reform took our taxes from 34 percent down to 21 percent, so we had additional capital and we used that capital to reinvest in the business,” Jim Cramer said in a phone interview Thursday with The Daily Signal.
He spoke with The Daily Signal four days before House Ways and Means Chairman Kevin Brady, R-Texas, introduced three bills to build on the success of the initial overhaul of the tax code.
When President Donald Trump was elected, Cramer said, his business had 70 employees. It now has 150. [Emphasis added.]
The story of Austin Hose is not unique.
When businesses such as Austin Hose expand due to having to pay lower taxes, even if they didn’t hire new employees, their investment in new equipment creates a positive ripple effect across the economy, which leads to greater optimism in other sectors.
The small business optimism index is at a record high according to the National Federation of Independent Business.
Despite the overwhelming evidence that lower taxes do, in fact, help improve the economy and create jobs, there are still those who want taxes raised on both businesses as well as individuals.