Lana Pol, owner of several businesses in Pella and Des Moines recently testified before the United States House of Representatives Committee on the Budget. Ms. Pol was representing the National Federation of Independent Business (NFIB) and she spoke of the economic opportunity being created because of the pro-growth tax cuts. “The 2017 Tax Cuts and Jobs Act provided tax relief that allowed us to invest in our employees with raises and our businesses with a significant facility expansion and new vehicles,” stated Pol.
In addition, Pol argued that “two of the most significant direct benefits from the new tax law for our businesses were the creation of the new Small Business Deduction (Section 199A) and the expansion of Small Business Expensing (Section 179).” Pol told the Committee that the Small Business Deduction will “provide around $40,000 in tax relief for our businesses.”
This is real savings for small businesses, which serve as the economic backbone for Iowa. “This tax relief from the new tax law provides crucial cash flow that allowed us to provide up to $4,000 raises to our employees,” stated Pol. Unshackling the tax burden from Iowa small businesses does not just allow them to expand, but it also benefits their employees.
In her testimony Pol said that her company was not the only beneficiary from the tax cuts. “Record levels of small business owners are increasing employee compensation. Over the past 14 months since the enactment of the new tax law, at least 30 percent of small business owners have reported compensation gains each month, a level that had been reached only once since 2001,” noted Pol.
Lana Pol’s testimony is just one of many examples of how the Tax Cuts and Jobs Act is helping both businesses and workers grow and create new opportunities. The economic growth generated from the tax cuts is creating a period of economic prosperity, but more work remains.
Pol urged that the Congress needs to make permanent many of the provisions of the Tax Cuts and Jobs Act that are set to expire in 2025. “That sunset date makes small business owners nervous about expansion. To provide long-term certainty and confidence for small business, Congress should make these provisions permanent,” stated Pol.
Pol is correct and allowing key provisions of the Tax Cuts and Jobs Act to expire will not only result in tax increases but deter economic growth.