CLINTON - The Tax Cut and Jobs Acts of 2017 is raising wages, getting more people hired and growing the economy.
That was the message given at an event hosted by the Job Creators Network at Jakes Electric, 207 Allen St., on Friday afternoon with Republican House Speaker Paul Ryan. The purpose of the event, organizers said, was to get the word out about the benefits of the plan.
"Things are getting better. Look no further than your neighbors, community and country," Ryan said.
The event was attended by State Rep. Amy Loudenbeck, R-Clinton, State Sen. Stephen Nass, R-Whitewater, and State Rep. Ken Skowronski, R-Franklin.
Job Creators Network CEO Alfredo Ortiz said small businesses make up 99.9 percent of business in America and about half of the workforce. By saving business owners' money, they are investing more in their businesses and community.
As a result of the tax cuts, Ortiz said there is record low unemployment, GDP growth and an increase in personal consumption.
Prior to Ryan taking the stage, Jakes Electric owner Brian Jacobs spoke about how the plan helped his business which started in 2001 with one man and one truck. Seventeen years later, Jakes has 40 trucks, 55 employees and three locations.
Thanks to the IRS changing its withholding tables, Jacobs said his employees are taking home more pay. Some of his workers are making as much as an extra $60 a week.
"If your employees have more money in their pockets, they are more productive at work," Jacobs said.
In a time when getting and keeping labor is increasingly difficult, the extra money in their checks is a big help to his business, he said.
There's also a small business tax deduction which Jacobs said benefited his S Corporation. For example, small businesses can now take a 20 percent tax deduction on business earnings from pass-through entities such as S corporations or limited liability companies.
Ryan said the Tax Cuts and Jobs Act will allowed businesses to increase investments in new equipment, their employees, training programs, and the community.
"It's important to show how important tax cuts are for the American worker and small business owner," Ryan said.
Ryan noted the previous tax code was crushing business. Three years ago Ryan said he remembers listening to Bernard Marcus, the founder of Home Depot. Marcus said he wouldn't be able to start his business if he had to do it all over again. After hearing from Marcus, Ryan said he went to work to figure out how to get America growing and get people into careers with increased pay.
Thanks to the Tax Cuts and Job Act as well as his Better Way agenda, Ryan said the total unemployment rate is at an 18-year low.
"Americans are better off because of the regulatory relief and tax code restructuring," he said.
At the event, the Job Creators Network awarded Ryan with the Defender of Small Business Award and a complimentary T-Shirt for his work.
Job Creators Network Chief Communications Officer Elaine Parker said the Tax Cuts and Job Act was passed at the end of December and went into effect in January. It changed the tax withholding tables in February and lowered the tax brackets across the board. As an example, she said the average family will see a tax savings of $1,200 this year.
The tax cuts doubled the standard deduction, meaning the first $24,000 of income is tax free.
There is also a new small business tax deduction which allows businesses to immediately deduct expenses for equipment. The previous tax law required people to depreciate those expenses over a period of time.
"Now they can make the investment and deduct it that year," she said.