A conservative business leader on Monday said there was a permanent increase in earnings for businesses as a result of President Trump’s tax law.
“On the corporate level, I think the reality is, is that there was a one-time bump, but it’s not a one-time bump per se,” Job Creators Network President Alfredo Ortiz told hosts Krystal Ball and Buck Sexton on Hill.TV’s “Rising.”
“It’s a permanent increase in their earnings overall because that’s a year over year savings that they’re going to have,” he continued.
Ortiz, who played a role in helping to pass the tax cuts legislation in 2017, went on to note that it has taken small businesses longer to see their gains from the tax cuts.
“A lot of information wasn’t even issued from the Treasury until the fall of last year,” he said. “So there really was still some lack of clarity of how small businesses could benefit.”
“For example, on the immediate expensing for example in investments and capital in equipment, that is a 100 percent deduction that they could take right there versus depreciation over years like they used to do,” he said. “Less than 50 percent of small business owners even realize that that’s a benefit yet to them.”
The tax filing deadline is Monday in most states, marking the first time Americans are sending in their returns under the first full year of Trump’s 2017 tax law.
Republicans and the administration have touted the tax-cut law, arguing economic data shows that it has benefited the middle class, but nearly half of Americans have a negative view of the law, according to polling.
A Pew Research Center survey conducted late last month found that 36 percent of respondents said they approved of the law, while 49 percent say they disapproved of the measure.
— Julia Manchester
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