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How tax reform is already making a difference for small business

June 28, 2018

min read

The United States’ economy is performing at record pace six months after President Donald Trump signed landmark tax legislation into law. Unemployment levels are at their lowest since 2000, and 54 percent in a recent CNBC survey say the economy is in “good” or “excellent” shape. Perhaps no other group has felt the positive impact of tax reform more than small business owners, despite criticism of the tax reform as only benefiting large corporations and their shareholders.

Aviation company CEO Chuck Feaga, who piloted corporate jets for nearly two decades, seized an opportunity when Maine Aero went up for sale. The company maintains and sells aircraft. While Feaga wanted to expand the business, he felt reluctance because of the high taxes he was already paying. The recent tax cuts opened up new opportunities.

“People are willing to invest, whereas before, they were dragging their feet. They just didn’t know what the future held,” Feaga said. “And now they do. And they’re excited.”

As a result, Feaga has invested in new equipment and has hired two new employees to what was an eight-person operation. That would not have happened without tax reform, Feaga said. Communities in Maine tend to rally around companies that perform well, he added.

“Everybody feels better, and they feel better about spending money,” said Feaga, who would like to hire three or four more employees to keep up with customer demand and plans to double or triple the size of his company over the next few years.

Koch Industries has long supported policies that help people improve their lives, especially those that take positive steps to eliminate corporate welfare for special interests and encourage economic growth.

Confidence among small business owners is “at all-time levels,” said Rep. Steve Chabot (R-Ohio), who chairs the House Small Business Committee.

“We’ve seen folks now taking advantage of the tax cuts, giving their employees raises … both large and small businesses we’ve seen doing this,” Chabot said. “Contributing to employer education accounts, 401(k)s, just a whole range of things. So, it’s making a real difference.”

In addition to the tax cuts, Chabot credits regulatory reform for improving the business climate. More reforms can keep the momentum going, Chabot said, adding that trade is an important consideration.

“We want to make sure that America is selling our products all around the world,” Chabot said. “We’ve got a lot of work to do. People are confident. People are hiring people. But still, a lot of what they have to deal with coming out of Washington makes it very challenging.”

This story originally appeared as a Freedom to Flourish segment, sponsored by Koch Industries, on Hill.TV’s Rising with Krystal & Buck.