The tax code is written to promote revenue and economic growth. The recently passed tax bill is an indication that the Republican Party respects the American taxpayer and wants a tax code that is pro-growth. The new lower rates give individuals and businesses an opportunity to thrive.
Smart individuals and businesses work within what the code allows and unfortunately the old tax code was punitive and did not encourage growth in America. For instance, the former corporate tax rate was one of the highest in the world, with a rate close to Argentina's, Chad's and the Democratic Republic of the Congo's; not exactly world economic powers. Now, with the new corporate tax rate lowered to 21 percent, what have we seen? Apple Computer is repatriating overseas cash and is going to pay an estimated $38 billion in taxes to the United States Treasury in the next year. In addition, many companies -- including Walmart, the largest private employer in the U.S. -- are giving bonuses and raising wages for employees.
Individual rates have dropped, and as a former small business owner structured as an S-Corporation (pass through entity), my business income was paid on my personal return. Oh, what I could have done at these new lower rates. It would have freed up cash for reinvestment in my business.
There's a saying that capital finds the best deal, and America is a better deal now. I predict that Americans will appreciate keeping more of what they earn and businesses will have more options to flourish. Thanks to Congressman Peter Roskam for helping get this across the finish line.
Joseph R. Swanson