Hurd on the Hill: Providing Much-Needed Relief for Small Businesses
Most folks aren’t accountants, myself included. And if you are not a CPA or a tax code expert, the idea of major tax reform can sound perplexing. Before the New Year, our tax code was four million words long – the same length as the Old and New testaments times five. When previously crisscrossing the 29 counties in the 23rd District of Texas, I consistently heard that our tax code was too confusing and left the average American behind. That’s why I worked with my colleagues in 2017 to create a simpler, fairer tax code, so that hardworking folks get the tax breaks they deserve.
Now that the new tax code has begun to kick in, from San Antonio to El Paso, the feedback has been consistent: people are seeing more money in their paychecks. But you don’t have to take my word for it.
Jeff and Mary Marsh have owned and operated Hinee Coffee in Helotes, Texas for the past seven years. Since they opened their doors, their business has expanded to two locations and eleven employees – seven of whom are full-time. Hinee Coffee’s staff ranges from students to single moms. When it comes to the recently enacted tax reform, Jeff is most excited about passing along additional savings directly to his staff. The Marshes plan to use the extra income Hinee Coffee saves in taxes for increases in hourly wages, benefits packages, and bonus programs.
The reduced corporate tax rate also incentivizes business owners to reinvest in their companies. In the past, when Hinee Coffee needed new equipment or repairs, they would typically delay these costs as long as possible. After seeing tax savings, they are now hoping to upgrade their systems and expand. When asked if the tax code was simpler to navigate, Jeff said, while they are still working with their CPA, he’s already noticed the reduction in paperwork for filing taxes. “When we’re not focusing on the paperwork, we have more time to focus on the operations of the business.”
Mary and Jeff Marsh are just one example of the many small business owners in TX-23 who are getting some much-needed relief from the Tax Cuts & Jobs Act. That was the purpose of tax reform: a simpler, fairer tax code that delivers real results for hardworking Americans. With businesses across the state like First Capitol Bank in Midland, Rush Enterprises in New Braunfels and El Paso Electric Company giving out company-wide bonuses and pay raises as a direct result of tax reform, Texas workers are seeing real results.
How is tax reform impacting you, your family and your business? I want to know.
Please don’t hesitate to reach out to any of my offices with any questions or concerns, and follow along on Facebook, Twitter, Instagram and Snapchat at my social media handle @HurdOnTheHill.