Republican-passed tax reform has helped to more than double his supply company’s business, a Texas entrepreneur says.
“The tax reform took our taxes from 34 percent down to 21 percent, so we had additional capital and we used that capital to reinvest in the business,” Jim Cramer said in a phone interview Thursday with The Daily Signal.
He spoke with The Daily Signal four days before House Ways and Means Chairman Kevin Brady, R-Texas, introduced three bills to build on the success of the initial overhaul of the tax code.
When President Donald Trump was elected, Cramer said, his business had 70 employees. It now has 150.
“So in just less than two years, we have more than doubled,” he said. “And our sales have just gone through the roof … because of the general business climate everywhere.”
Confidence among U.S. small businesses reached a historic high in August, according to the National Federation of Independent Business.
The lobbying group’s monthly index hit 108.8 in August, the highest level in its 45-year existence. The reading eclipsed the previous record high of 108 from July 1983, Business Insider reported.
The tax reform package, which cleared Congress Dec. 20 and went into effect Jan. 1 after Trump signed it, repealed the corporate alternative minimum tax in addition to cutting the corporate income tax rate from 35 percent to 21 percent.
It also provided for full and immediate expensing, which allows businesses to deduct expenses immediately from taxable income, an element that Cramer says has been a huge asset to Austin Hose.
“If you can expense it immediately, as opposed to doing it over four or five years, that has an immediate effect on your business and your taxes, so we have probably … bought 20 trucks in the last 18 months,” Cramer said, adding:
We have really invested heavily in plans and equipment, [and] we have opened a new branch in Oklahoma City. In the last two years, our sales have doubled; it went up 50 percent a year ago and they’re going up another 50 percent this year.
Cramer, 60, has lived in Texas since eighth grade. He and his wife, Josette, have six children.
Two of their children are employed at Austin Hose: Daniel, who is CEO, and Billy, who works at the Amarillo warehouse.
Cramer said he sees a marked difference in both the economy and how businesses are treated between the presidencies of Barack Obama and Donald Trump:
The big problem for the last eight years with President Obama is you just had no idea what was coming next. And in terms of tax relief, we didn’t get any tax relief; corporations did not. You never knew what new regulations might pop up and cause all kinds of problems in your business. We just have a lot better understanding of what the future looks like for the next several years, so we are really excited about it.
Read the full story from The Daily Signal
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