Wisconsin has a lot to be proud of thanks to its native son, House Speaker Paul Ryan. The new tax legislation is already working in favor of working Americans.
In his recent State of the Union address, President Trump proclaimed, “The era of economic surrender is over.” And we are seeing evidence of that statement almost every day.
Despite strong media bias opposing the Tax Cuts and Jobs Act, this legislation has been a resounding success for job creators and families all across the county.
Small businesses have especially benefited from this new law. Under the previous tax code, main street businesses were expected to relinquish up to 40 percent of their income to the federal government. Fortunately, one of the most transformative aspects of the Tax Cuts and Jobs Act is the creation of a new 20 percent deduction for all small businesses earning $315,000 or less each year. This threshold accounts for roughly 95 percent of all small businesses, allowing ample opportunity for business expansion and job creation.
When businesses expand, new hiring generally follows. Apple, for example, is planning on hiring an additional 20,000 employees with the money they are saving from the tax bill. And they are not the only company. Latest reports estimate over three million workers have been impacted by the tax bill through generous bonuses and other employee benefits. Job creators everywhere are investing their money where it will have the largest impact: Their employees.
MusicNotes, located in Madison, is a great local example. This company is providing each of their employees with a three percent salary increase, citing the new tax bill as the driving factor.
I think one of my favorite aspects surrounding these announcements is the fact that the tax savings are truly being invested in the average employee, as opposed to CEOs and other executives. Walt Disney Corporation proves this point well. They are providing $1,000 bonuses to all full-time and part-time employees who have been with the company before the start of 2018, excluding executive-level employees. When taxes go down and deductions go up, businesses try to reward their employees to keep them happy and expand operations, not just line the pockets of wealthy executives.
Out-of-touch Democrats, such as House Minority Leader Nancy Pelosi (D-CA) and former Democratic National Committee Chairwoman Debbie Wasserman Schultz, have doubled down on their opposition to the American worker by calling tax-induced bonuses “crumbs” and saying “I’m not sure that $1,000 goes very far.”
For political elites, $1,000 may not seem like a lot of money, but for lower- and middle-class Americans, that extra money brings a huge sigh of relief. With $1,000, a family of four is able to buy groceries for a month, new tires for their car, Christmas presents for a family or six months of gas. Considering nearly two-thirds of Americans are unable to cover an unexpected cost of $400, a $1,000 check is a big deal.
The new tax law changes lives. I applaud Wisconsin’s Republicans for speaking up on behalf of America’s job creators and workers everywhere.
Devin Gatton is the President of Wisconsin’s Chapter of Log Cabin Republicans.