This Sunday marks the start of America’s annual Small Business Week. And every year since 1963, the Small Business Administration’s Small Business Week recognizes the importance of small businesses throughout the country by highlighting their successes. This year, Small Business Week is more important than ever.
Throughout the country, small businesses have much to be thankful for. President Trump’s administration has brought back a much more business-friendly climate. And this entrepreneurial spirit has reinvigorated many job creators to do what they do best: Create jobs for working Americans.
We began this year with substantially lower tax rates thanks to Republicans’ tax cuts passed last December. Prior to the Tax Cuts and Jobs Act, many small business owners were taxed at the top federal rate, which could be nearly 50 percent once state and local taxes were added in. Today, that rate is down to just 37 percent. Additionally, the tax cuts also created a new 20 percent deduction for small businesses. And paying fewer taxes has proven to be a tremendous success for employers and the people who depend on them.
Many small businesses throughout the country have announced that they will use their tax savings to reinvest in their business by expanding, hiring additional staff, and even giving back to current employees. Brian Cassidy, the owner of Junk King in Nevada, said he will hire more workers and invest in new trucks. And Joseph Semprevivo, the owner of Joseph’s Lite Cookies in Florida has already given current employees a substantial raise of over $4,000. These are just a few examples of hundreds of small business owners who deserve to be recognized.
Job creators have also begun to feel the effects of reduced regulations. Under the current administration, burdensome red tape has been cut at a faster rate than ever before. And the growth of new regulations has also slowed. Through an executive order signed by President Trump last year, for every new regulation introduced, two old regulations must be eliminated. While many of these reductions might go unnoticed, America’s job creators are feeling the benefits. Federal regulations can cost job creators nearly $2 trillion every year, inhibiting investment and growth.
And even more recently, small businesses may be able to choose more flexible and affordable health insurance options. The Department of Labor will hopefully soon be loosening regulations on health plan options that businesses and thus their employees will be able to purchase, though expanded Association Health Plans. This will free small business owners from being forced to purchase costly Obamacare options that made employees and employers pay more for premiums that they didn’t necessarily need or want.
As one can see, this year’s Small Business Week is one to celebrate. Nearly two-thirds of small business owners agreed that the current administration’s policy changes have helped their business as opposed to the previous administration’s policies. And the confidence from small business owners is spreading. Consumer spending hit a 14-year high in March and the outlook for a growing economy is still strong.
Let’s keep the positive momentum going.
