'These Policies Are Helping Small Businesses': Jon Husted Praises Impacts Of Big Beautiful Bill

[00:00:00]Yeah, thank you so much. Next we'll recognize Senator Heustead and then we'll go to Senator Coons.

[00:00:05]Thank you.

[00:00:06]>> Uh Thank you very much uh Chairman Ernst Ernst and uh I'm looking at uh our witness list today and I appreciate you all being here um and I I I want to just you know, small businesses are are uh you know, the majority the vast majority of employers and the great thing about it is that people you know, can start small, they can grow big, they can design a business however they want, but but that's one of the you know, American capitalism and entrepreneurship are one of the backbones of what made America the most prosperous nation in the history of the world. And uh we know that you talk to any small business owner and they want less government in their life and more of the resources that they've earned to stay in their pockets so they can reinvest in the things that are important to their future. And the working family tax cut plan strengthened this foundation with a 20% deduction for qualified business small business income uh and making that permanent and reducing the cost of capital to invest in machinery, equipment, research and development.

[00:01:20]The bottom line is is that they don't need a government intervention. They just need to be able to to keep more of their own money to invest in these things so they can compete and they'll make a better decision. They'll decide on uh how to how to make those investments. 12 million business owners by an average of uh this has helped 12 million business owners by an average of $7,000 per year and the permanent 20% deduction has lowered taxes for 8 million small business owners by an average of $4,600 annually, which has led to new business formations at record highs of 2.9 million 2.9 million new businesses created through May. The strongest 5-month start on record in Ohio new business formation is up 10% during that same period. I also recently look at stats in my own state. We've a record number of people who have who are employed. Uh more jobs than any time in our state's history.

[00:02:16]And uh almost a record low unemployment rate of 3.9%. So clearly uh these policies are helping small businesses.

[00:02:26]It's also putting more money in the pockets of their employees.

[00:02:31]Uh the working family tax cut plan for a family of four in Ohio making $80,000 a year will put uh $6,000 more in their pockets than it would have if we hadn't passed it.

[00:02:43]Uh including a $2,200 per child tax credit that they can use for things like child care or whatever it is that they want to do for their family.

[00:02:52]Um and so Mr. Rudy, I want to just ask you to elaborate uh on what these tax policies including the if particularly the 20% deduction uh for expanded expenses means to small businesses.

[00:03:10]>> Absolutely and um the legislation this legislation as well as the one big beautiful bill pro bus pro small business legislation uh cannot be um overstated its value at the local level.

[00:03:23]Um not only from us buying a new and a a run-down decades old uh old um dry cleaners and a part of a community in Garden City just a suburb of Boise and and part of and partnering with the chamber to reviv as a part of a revitalization effort of that part of the city um where 8,000 of that 11,000 square foot space is production space and it's all was tax deductible in the last year which offset the taxes associated with that a very good year of revenue for a small business. And now we can take that revenue that would have been paid in taxes and reinvested it into the company, into hiring more employees, into R&D.

[00:04:03]Yes, the government does provide non-diluted R&D through cyber provisions, through congressional ads.

[00:04:09]Um but it's it's very helpful when you can control your own destiny and put that that that money back into your company to R&D and hire new employees through through proactive tax benefits for small businesses.

[00:04:22]>> Yeah, the look there's if you know any I mean anybody that talks to a business owner if they want to compete if we want to do more made in America, we want to make more things here. We're going to we want to pay our workers more than they than than the the low wages that they pay against a lot of the countries we're competing against. You have to have money to invest in machinery and equipment and all of the latest automation so that you can get your productivity gains so you can pay your people more. Isn't that right?

[00:04:49]>> Absolutely. And it allows us as a small business to attract um talent talent that may have gone to larger companies that can pay higher wages and we can compete with that because we have longevity in the company, we have security, we have money to invest in them in higher salaries can more competitive salaries.

[00:05:05]>> Yeah, well quickly Mr. DeWard uh you you're in Iowa. You're like Ohio likes to call itself the heart of it all but Iowa is certainly in the heart of the heartland. Um it what what do you business what do you and your your your friends who are in business what how do you feel about this? Is this helping?

[00:05:25]>> Uh yes, it is for sure. You know >> [clears throat] >> uh paying taxes is really a cost of doing business.

[00:05:32]So obviously any any expense that you have in a business if you pay less of it, it's it's good for the business.

[00:05:38]There's a couple things that I think really help small businesses. I I have two uh children that are entrepreneurs who have their own businesses the ability to expense reinvestment into business in the year of purchase is a huge help to a small business.

[00:05:58]And then from an employee standpoint, I have a son who has a tire shop and he has some employees that work out in the shop. You know, they make 20 to 25 dollars an hour and the ability to they work 45 to 49 hours a week. So the provision to allow them to get a credit on some of their overtime when someone's making 45,000 dollars, if that's two or three thousand dollars, that's that's a big deal.

[00:06:29]>> It's a big deal. It's you know, in some cases 5% of their as you you describe it 5% almost 5% of their income. So Well, great. Thank you.