While the news is filled with opinions about the Tax Cuts and Jobs Act, recently passed by Congress — often with previously unheard-of perspectives from people not liking tax cuts – press releases have flooded media from organizations that are ecstatic with the legislation – mostly from business-related organizations.
“This historical tax relief bill is a powerful measure that will fuel economic growth, boost entrepreneurship and encourage small business success,” is the official comment of Small Business and Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan, “It will provide small business owners with the capital and incentives they need to grow, innovate and compete on the global stage. Strong and sustainable economic growth is vital for small business success, entrepreneurial opportunity and the creation of quality jobs.
Kerrigan went on to say, “Small business owners and entrepreneurs congratulate President Trump and his team for their leadership and perseverance. The House and Senate GOP leadership also deserve high praise for their diligent work and focus on producing a tax package that will lead to strong economic growth and a more competitive climate for all U.S. businesses. Entrepreneurs and small business owners are optimistic about their prospects for growth, and look forward to benefitting from key tax changes that support their risk-taking and big goals for 2018.”
“I will be frank: this tax bill is not perfect—no piece of legislation is—but it is a much-needed reform to our broken tax code,” said Scott Hodge, President of the Tax Foundation, “Our tax code is uncompetitive and broken. Our corporate income tax rate is well above the world average and our individual income tax base looks like Swiss cheese. These reforms will grow the U.S. economy, create jobs, and raise wages. It’ll increase after-tax incomes for the majority of Americans.”
Independent Community Bankers of America (ICBA) President and CEO Camden R. Fine stated, “ICBA and the nation’s more than 5,700 community banks congratulate Congress on its final passage of tax reform legislation and thank lawmakers for making much-needed improvements to the bill. ICBA supports tax relief provisions of the legislation that would reduce the top corporate rate from 35 percent to 21 percent, provide estate tax and alternative minimum tax relief, and lower individual rates.
“Among its many pro-community bank provisions, the legislation would carve out small-business borrowers from limits on the deduction for business interest expenses, preserve laws on non-qualified deferred compensation and mortgage-servicing assets, and largely maintain the mortgage interest deduction. ICBA particularly appreciates the improvements to provisions on Subchapter S community banks and other pass-through businesses that lower the effective tax rate for these small businesses.”
The National Federation of Independent Business (NFIB) President and CEO Juanita Duggan state, “Small business owners have waited more than 30 years for Washington to pay attention to their biggest problem — high taxes. With Senate passage of the tax bill, America’s small businesses are one step closer to the tax relief they deserve.
The National Manufacturers Association said, “President Donald Trump, House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, House Ways and Means Chairman Kevin Brady and even more of our nation’s leaders sought the NAM’s input and counsel and manufacturers’ support every step along the way to this victory—which was decades in the making. Now tax reform will soon be the law of the land. After aggressive outreach by the NAM and our members, a true partnership with the tax reform decision makers and a full-scale campaign to share the stories of manufacturers with members of Congress, the press and the public, both the House and Senate passed the final tax reform bill this week.”
Following the Senate vote, NAM President and CEO Jay Timmons declared, “When this bill becomes law, manufacturers in America will be more competitive than they have been in decades. This is a win for the American economy, and it puts the world on notice: America is even better prepared to compete and win for every job and opportunity.” Timmons noted that while the first major tax reform bill in 30 years “isn’t perfect,” it does include manufacturers’ highest priorities: a significantly lower corporate tax rate (21 percent), tax relief for pass-through businesses, a territorial tax system, robust incentives for equipment purchases and retention of tax incentives for research and development. In a Shopfloor blog post, NAM Small and Medium Manufacturers Chair Drew Greenblatt broke down the impact tax reform would have on small manufacturers and their employees. There is no doubt that the relentless work of manufacturers—including manufacturing leaders’ and workers’ willingness to speak out—made the difference in getting the bill across the finish line. This week, Timmons also issued a call for “a triennial government study to see how our tax code compares to nations around the world—and determine what we can do to become even more competitive.” The NAM remains committed to building on this success and pursuing reforms in the future that will further enhance manufacturers’ competitiveness.”
From Associated General Contractors of America, Stephen E. Sandherr: “Today, Congress passed comprehensive tax reform legislation that will lower rates, spur economic growth and impact construction businesses for years to come. However, this process did not start as well as it ended for the construction industry.
“Initially, the tax reform bill provided little relief for many construction firms organized as pass-throughs, such as S-corps, limited liability corporations and partnerships; eliminated Private Activity Bonds, essential to the financing of transportation infrastructure, low-income housing and other public construction and public-private partnership projects; and repealed the Historic Tax Credit, critical to the private construction market for the rehabilitation and renovation of historic buildings.
“AGC continued to fight for a better outcome for the construction industry by undertaking a rigorous direct lobbying campaign. Our efforts included connecting construction company CFOs and CPAs with tax writers, and generating thousands of pro-construction messages from members to key legislators. Our efforts helped convince members of Congress to ultimately reduce the corporate rate by 14 points; lower individual and pass through rates; double the estate and gift tax exclusion to $11 million; ensure the tax-exempt status of Private Activity Bonds remained untouched; and prevent full repeal of the Historic Tax Credit.”
SBA Administrator Linda McMahon released the following statement, “As the first major update to the tax code since 1986, passage of the Tax Cuts and Jobs Act is a monumental achievement that can serve as an inspiration for every American who has ever dreamed of opening a small business. As I’ve traveled around the country, small business owners have repeatedly told me that they want lower taxes, less burdensome regulations and a simplified tax code. The bill as passed today successfully delivers in these areas and upholds the commitment that the President made to the American people to promote pro-growth economic policies.”