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Ed Fryar, an Arizona chicken farmer, will add nearly 50 percent to his work­force next year — but only if the House tax plan becomes law. The bill will help mil­lions of Amer­icans and small business owners pay less in taxes, and its cor­porate cuts will help bring jobs and taxes to the United States.

Business tax cuts aren’t just good for mil­lionaire business owners these days. Most U.S. busi­nesses, par­tic­u­larly small busi­nesses, are set up as “pass-through cor­po­ra­tions,” meaning their owners pay per­sonal income tax on the profits instead of cor­porate tax. The House bill will drop that top rate from 39.6 percent to 25 percent — a massive break for suc­cessful small busi­nesses.

Ed Fryar owns a chicken company and was recently inter­viewed for National Public Radio’s Mar­ket­place. With the pass-through tax cut, one of the bill’s business tax cuts, he will be able to pay down his business loan in one year instead of three. And when that’s paid off, he will add 500 to 800 employees to his current 1700-man work­force. That kind of growth will raise wages, employment, and tax rev­enues at the same time.

The bill’s cor­porate tax cut is also a great boon for business. The tax cut from 35 percent to 20 percent will help bring cor­po­ra­tions and their tax rev­enues back to U.S. shores. The drop will make America com­pet­itive with other coun­tries, almost all of which has a far lower cor­porate tax rate on paper (though its effective tax rate is only slightly higher than that of other coun­tries).

Between the cor­porate and pass-through tax cuts, the House bill pro­vides serious incen­tives for large busi­nesses to con­tinue to operate and for small busi­nesses to start up in the United States. If Pres­ident Donald Trump signs the tax bill into law, U.S. busi­nesses and wages could grow faster than they have in decades.

The bill also improves per­sonal income taxes. Sophomore Joshua Waechter’s column from the Nov. 16 issue of The Col­legian, “GOP tax plan harms most Amer­icans,” misses the mark on this point. He says that the removal of certain itemized deduc­tions will hurt most Amer­icans, but that’s not true. Those removals only affect the upper classes and the other reforms in the bill balance it out for everyone else. The bill sim­plifies the tax code and pro­motes American business and wage growth for all.

Waechter argues against several reforms that elim­inate deduc­tions in order to sim­plify the tax code. But the vast majority of Amer­icans don’t use any of the affected deduc­tions.

He says that capping the property tax deduction at $10,000 would hurt many Amer­icans. But the average American only pays about $2,100 in property taxes. This pro­posed change would only affect Amer­icans living in high-tax states with homes worth over half a million dollars. It’s not exactly a big hit for Joe Six-Pack.

In fact, 70 percent of Amer­icans use the standard deduction, which means they don’t take any itemized deduc­tions like property tax deduction. Waechter claims the bill “elim­i­nates nec­essary deduc­tions for mil­lions of middle-income and lower-income Amer­icans.” That’s simply not true, when 70 percent of Amer­icans don’t take any of the deduc­tions men­tioned in the column, and the ones that do are mostly upper-class.

The tax bill doubles the standard deduction while elim­i­nating the smaller “per­sonal exemption.” It’s a com­pli­cated tradeoff, but it basi­cally evens out for most Amer­icans while sim­pli­fying the tax code in the process. And with the expanded child tax credit, many lower-income singles and fam­ilies will save on taxes.

The facts back this up: the Joint Com­mittee on Tax­ation shows that the tax plan would be either ben­e­ficial or neutral for the 92 percent of Amer­icans for five years. And after five years, it would still help most Amer­icans.

This sweeping reform ben­efits all income levels and cuts through the night­marish red tape of the IRS tax code. Come April, most Amer­icans’ taxes will be easier than ever — and they’ll probably even save a little. It’s what the GOP has promised for decades. If the bill passes the Senate and White House, they could finally deliver.


Noah Weinrich is a senior studying pol­itics.