The tax bill isn’t perfect, we can all admit that, especially on the individual side of things.
But, I think the business cuts will prove fruitful for years, ushering in growth in the 3 or 4 percent range, which used to be the norm.
It could be even higher if things work better than expected. The legislation is aimed at reducing the high tax costs of capital and increasing net investment returns. And if that happens, growth will follow.
I’ve heard questions of what businesses will do as a result of these bills. Well, if it makes sense to invest internally, the company leaders will make it so.
The key points here for businesses are a lower tax rate of 21 percent, immediate and full expensing, and repatriation of money held overseas at favorable rates.
Not to be forgotten is a 23 percent discount for sub-chapter S passthroughs. I know that may seem like a word jumble, but the provision could be huge for economic growth.
And such growth will be good for everyone, at all levels. Big businesses, small firms, investors and workers alike should all benefit from an influx of investment.
But don’t forget, it began with historic tax cuts.