This guest post was submitted by state Rep. Jeffery Magrum. He has been a small business owner for 33 years and represents district 28 in the North Dakota state House of Representatives
As any small business owner knows, life has its ups and downs. So when you’re on a winning streak, it’s important to put your nose to the grindstone and get results. It’s been a long recovery period for America’s economy. But now, from the heartland to the coasts, we’re making the leap into prosperity. And this year’s big new tax cut is perfectly crafted to ensure we can land with both feet in a better future.
The positive effects of tax cuts are already starting to show. Last month, total US payroll employment jumped by 200,000. Small businesses are doing what they said they would do with a tax cut—raise wages, hire, and expand. We haven’t seen so many small firms plan to raise pay in 30 years. Confidence among small businesses is off the charts.
And the best thing about all the energy unleashed by the well-earned new tax cut? It’s spread all over the place. Consider North Dakota. 96% of our businesses are small businesses and more than half our private sector employees work for one of them. Here in Hazelton I’m happy to keep Main Street humming with my excavating and plumbing company. Across America, you’ll find small firms playing that role in manufacturing, industry, agriculture, retail, and more.
That’s why the new tax cut is making such an important impact on our fortunes this year—and why it’s laying a secure foundation for the future. I know from 33 years of business experience that there’s nothing small businesses like better than growing operations. That’s how we prosper, and that’s how our customers and neighbors do too.
To make our dreams a reality, lawmakers wisely scrapped the old, unfair tax laws that could take up to half of small-firm income away once state and local levies were factored in. In its place, they delivered a new 20 percent tax deduction, built to reward growing businesses instead of holding them back.
Fortunately, the new tax code brings the right kind of relief at the right time. Economics has always shown that keeping taxes low ensures more activity, more cash, and more profitable transactions through our society. Hopefully these tax cuts will help revive North Dakota’s economy.
The new tax code allows small businesses to reinvest to stay competitive and attract the employees that will power their continued growth. In a new survey, seventy-five percent of economists say this year’s economic growth is going to be significant. Ninety percent of middle-class taxpayers, experts predict, will see tax savings come in before 2018 is through.
No matter what their political affiliation or income level, most Americans say they’re feeling good already about how this economy’s doing. Polls show 7 in 10 voters say the economy’s good or excellent—the most in 17 years. And when it comes to their view of small business itself, Americans have greater confidence than they do in any other large institution.
When it comes to powering prosperity, tax cuts just work. When President Trump and Congress came together to apply that simple wisdom, small businesses like mine stood up and cheered. Now, we’re all seeing the results of our smart new tax code. And the best is yet to come.