Business is ‘booming,’ but tax cuts need to be made permanent, Iowa member says.
As NFIB Member Lana Pol knows firsthand, tax cuts are working.
“We’re estimating around up to $40,000,” Pol told CNBC’s Kate Rogers in a March 18 interview. “By utilizing that, we gave our employees raises, knowing that was going to help us for taxes this year.”
But to provide her – and other small business owners – certainty, Congress must act to make the tax cuts permanent.
Earlier this year, on Feb. 27, Pol testified before the U.S. House of Representatives Committee on the Budget. In a hearing entitled “2017 Tax Law: Impact on the Budget and American Families,” Pol—President of Geetings, Inc., a trucking and warehousing business in Pella, Iowa, and owner of several other small businesses in and around Pella and Des Moines—spoke on behalf of the many small business owners who have benefited from the 2017 Tax Cuts and Jobs Act.
For Pol, one of the most significant direct benefits from the new tax law includes the creation of the 199A Small Business Deduction, a provision of the law championed by NFIB.
“This tax relief from the new tax law (from the Small Business Deduction) provides crucial cash flow that allowed us to provide up to $4,000 raises to our employees, the largest compensation increases we have been able to provide in recent years,” Pol said. “These raises increased employees’ take-home pay and helped us retain employees … Additionally, we invested $2 million in a nearly 40,000 square foot expansion of G.I. Warehouse Corporation, which was completed in December. We are now up to 460,000 square feet in warehouse space.”
The 199A Small Business Deduction is scheduled to expire after 2025 absent congressional action. In her testimony, Pol urged Congress to make the deduction permanent in order “to provide long-term certainty and confidence for small businesses.”
“I have observed other small businesses in and around Pella also investing in employees and companies,” said Pol. “We have experienced this optimism firsthand. Multiplying our experience by millions of small businesses around the country demonstrates significant economic benefits resulting from the Tax Cuts and Jobs Act.”
IN CASE YOU MISSED IT: What is the Small Business Deduction (Section 199A) Webinar
For more information, visit NFIB.com/Taxes.