Originally ran in the Indianapolis Star
It’s February and government withholding changes are kicking in, which means millions of Americans will soon begin to see real financial savings in their paychecks that stem from the tax cuts legislation — passed and signed into law in December.
The effects will prove that much of the rhetoric surrounding the Tax Cuts and Jobs Act is nothing but political posturing. For example, Sen. Bernie Sanders (I-VT) claimed the bill “ignores the enormous problems facing working families,” while “giving tax breaks to billionaires and large corporations.” And House Minority Leader Nancy Pelosi (D-CA) has referred to the bill as a “rip-off” that “plunders” and “pillages” the middle class.
This argument is echoed by countless mainstream media outlets and political ideologues. But it couldn’t be further from reality.
It’s true that corporations — such as American Airlines, PNC Bank, and Aflac Insurance — are receiving tax relief (the corporate tax rate dropped to 21 percent), but much of their financial windfalls are trickling down to the employees. In fact, well over 3 million Americans have already received some sort of benefit through their employer because of the tax cut. This includes everything from wage increases, bonuses, and the expansion of benefits. Apple—one of the world’s largest tech companies—even plans on investing $350 billion into the U.S. economy over the next five years.
But large corporations and their employees are not the sole beneficiaries. Small businesses will experience substantial tax relief as well. The tax bill created a 20 percent standard deduction and eliminated high tax brackets in favor of new, lower ones.
These measures will do a lot of good for small businesses around the country and most notably, those right here in Indiana. There are currently over 500,000 Hoosier small businesses and they employ well over one million people. If a substantial portion of these small businesses use the financial savings to either hire an extra worker, give a boost to wages, invest in new equipment, or expand operations, what seems like a modest tax break will turn into a giant boost for the broader American economy.
For example, our family business — Tom Farms — is investing in millions of dollars of new farm equipment and other new innovations and technologies that will help us plant and harvest a crop for a growing world. With investments like these happening in all areas of the agricultural industry — from animal agriculture, biofuels, innovations in data science, to new systems in farm to fork—jobs are being created at all points in the supply chain of the agro-economy and are helping thousands of hardworking American families get out of debt, pay for childcare, and keep up with skyrocketing health-care costs.
Thankfully, the American public is beginning to see through the media bias and political banter, and is getting behind the tax bill. According to a new survey from the New York Times, support for the tax cuts law is up 9 percent since just before the bill’s passage. And another poll from Politico reveals that a majority of Americans believe the tax cuts package will be good for the economy.
It’s been long predicted that the Tax Cuts and Jobs Act will give a substantial boost to the U.S. economy and the main street businesses that comprise it. These benefits are becoming more difficult to ignore by the day.
Kip Tom is the Chairman of Tom Farms in Leesburg, IN.
Thank you members of Congress who voted for the bill and the Administration for delivering the promise of tax relief to hard-working Americans and entrepreneurs.