As we go to the polls this month, Ohioans would be wise to consider the strong state of our economy and the successful policies enacted by Republicans that have made it that way.
Even with last week’s slight dip in the market, the economy is booming as we head into President Trump’s third year in office. The president rightly recognizes one of his biggest legislative accomplishments as passing the Tax Cuts and Jobs Act—major tax reform legislation that was signed into law at the tail end of 2017.
The impacts have been hard to ignore.
One of the key benefactors are small businesses. Financial savings brought on by the new, lower tax rate and creation of a 20 percent small business deduction have allowed these entrepreneurs to use more of their own money to do what they do best—stoke the fires of the economy. More specifically, extra funds in the hands of small business owners have been funneled into higher employee wages, operational expansions, worker bonuses and the creation of new job opportunities.
More broadly, the tax cuts have been a boon for not only the 30 million small businesses across the country, but the tens of millions of Americans that rely on them for their economic well-being. In fact, nearly half the country’s workforce is employed by small businesses.
However, small business owners and their employees are not the only ones to benefit—employees of larger corporations and Americans that fall on every segment of the income spectrum have as well. In fact, according to the Treasury Department, 90 percent of American workers are now taking home more money in their paychecks. And many of these tax cut success stories are taking place right here in the Buckeye state.
Fifth Third Bank raised the pay for 3,000 hourly employees to $15 an hour and distributed $1,000 bonuses to employees. J.M. Smucker Company likewise gave a $1,000 bonus to nearly 5,000 employees as well as an additional $20 million in contributions to its employee pension plan. And according to Tax Foundation estimates, by the year 2025, 54,000 new jobs in Ohio will be a direct result of the Tax Cuts and Jobs Act.
However, there is some troubling news. Many of the provisions included in the tax bill are set to expire in 2025—which will mean that much of the economic progress we’ve made over the past year will be wiped clean.
Luckily legislation that would extend the tax relief benefits has been passed by the U.S. House of Representatives and only needs a vote in the Senate to get to the president’s desk. I think we can all agree the Senate must take action and put the legislation up for a vote after the midterm elections.
On the campaign trail, Trump promised tax cuts and today we have them and the success of the tax relief measures couldn’t be more clear. Republicans have been vindicated after years of advocating for tax cuts, and that advocacy needs to continue, not only to keep Trump’s promise, but to keep our economy on track.
