Three weeks ago, at a Rose Garden event at the White House, owners and employees at Werner Enterprises, Six Hundred Downtown Pizzeria, Universal Plumbing and SmithCraft Signs highlighted how tax reform was increasing workers’ paychecks, improving business and freeing up money for once-difficult purchases. A mother, for example, had some extra cash to travel and go see her daughter, who was recently discharged from the Navy.
As more money pours into more individual bank accounts, and the booming economy continues to gain steam, workers across the country are seeing even more ways that tax reform is delivering for the American people. At Winton Machine Company, a family-owned manufacturer in Georgia, tax reform has enabled the company to land its largest contract ever, said Lisa Winton, who, along with her husband, George, founded the company in their basement in 1997.
From that basement in their home in Lawrenceville to a 14,000-square-foot facility in Suwanee, Winton Machine employs 32 people today, up five workers since 2016. The company is also adding three interns this summer, working with a local high school and college to train students for manufacturing jobs of the future.
Winton Machine has delivered U.S.-made machines to more than 500 customers in the United States and around the world. And it has established sales partnerships with agents in Russia, Canada, Mexico, Colombia, Israel, India, Saudi Arabia, United Arab Emirates, China, Egypt, Poland, Japan and Spain.
“Tax reform is enabling companies to make significant capital investments, and it’s creating more business for us and other small manufacturers,” said Ms. Winton.
Winton anticipates making her own capital investments. “We’ll be replacing two machines in our factory,” she said.
Small manufacturers from coast to coast are seeing various provisions of the tax legislation spur advances in business. “Tax reform has been a game-changer for many small manufacturers,” said National Association of Manufacturers (NAM) Vice President of Tax and Domestic Economic Policy Chris Netram. “For small businesses that rise and fall on their cash flows, immediately deducting the cost of capital equipment purchases—rather than recovering these amounts over years—provides an incentive to invest today in the machinery that will power future growth.”
“The NAM [and lawmakers in Washington] were successful in allowing me the opportunities as a pass-through business to get those deductions to have that lower tax rate to be able to invest in my business, in addition to still holding onto those R&D tax credits, which are so critical and important … because we came to market with two new machines last year, and we couldn’t have done that without the R&D tax credit,” said Winton.
“I have a bright outlook on tax reform; just knowing that I have a reduction in my tax in addition to keeping the credits that I so need while business is getting better is a good combination. And I can free up cash to train employees.”
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