In just a few weeks, Illinoisans will start to see their paychecks grow. After the landmark tax reform legislation passed Congress, the IRS has issued new tax brackets. Beginning in February, as appropriate, most employers will start adjusting their employee’s paychecks. Which means that Americans will now take home more of their hard-earned paycheck, while the government will take less.
The partisan spin and DC special interests have been working overtime regarding this piece of legislation and what it means for middle-class families and small businesses. As an entrepreneur and small business owner, I have a unique insight into the benefits of this landmark legislation.
First and foremost, I firmly believe that the American people are better stewards of their own money than the government. When the American people have more to spend it spurs economic growth. Economic growth helps small businesses, creates jobs, and increases wages. This not only helps the American people, but it helps expand the government’s tax base.
Second, entrepreneurs and the business community look at the current and future regulatory climate before making any decisions on hiring, expanding, and capital investments. Now, for the first time in many years, the business community has a regulatory climate that encourages growth and expansion. This is precisely why, almost on a daily basis, businesses are announcing bonuses, raises, and capital investments.
Recently, the largest U.S. employer Walmart announced that it’s giving $1,000 bonuses to workers, along with raising the starting wages for new employees. Additionally, Starbucks announced that it’s raising wages and is even offering stock options to employees. I can name company after company that are raising wages, handing out bonuses, and giving real benefits to their employees. Let’s not forget about the reduction in the corporate tax rate. American businesses now have a real shot at competing on the world stage and that benefits everyone.
This should be a bi-partisan success story. Both parties repeatedly claim they want to grow wages for lower-income and middle-income workers. Thanks to common sense legislation out of Washington, we are seeing free market forces at work growing wages for everyday Americans. No matter your partisan leaning, you must admit this is a good thing.
As an entrepreneur and investor in start-up businesses, I’ve seen firsthand how over-burdensome regulations and high taxes can crush the entrepreneurial spirit. It’s crucial that our Representatives in Congress understand that it's the private sector that create the jobs, not the government.
We need to get government out of the way and allow the innovation and entrepreneurial spirit of the American people to take charge. That’s how we make sure everyone wins.
Dr. Sapan Shah
Founder, Flagship Healthcare & Membership Chair, Hyde Park Angels
Republican Candidate for Congress, Illinois 10th Congressional District