As a small business owner I watched closely as the Tax Cuts and Jobs Act of 2017 was pushed through Congress at the end of last year. Naturally I was curious about how the bill would impact HiWorks but it was hard to tell - in the final stretch the bill changed from day to day and even after it passed I wasn't sure. HiWorks does not have the luxury of employing a team of accountants to crunch numbers in real time but when it came time to do my taxes for 2017 (the new tax code applies to income earned in 2018) I asked my accountant to see what the difference would be if the new tax code was applied.
All totaled HiWorks will pay $711 less in taxes.
To be fair my tax burden was reduced by the Tax Cuts and Jobs Act of 2017 as promised. But $711 does feel more than a bit underwhelming - especially when I was told “There’s never been tax cuts like we’re talking about.” Given that this tax cut is projected to add one trillion dollars to the deficit next year alone it would seem some businesses are getting more than $711. It would seem the promised tax savings were not as equitably distributed to small businesses as promised.
The fact is I can't hire a new employee with $711. I can't increase productivity by buying a new computer. I suppose could put that extra $711 into my daughters' college savings account but at the end of the day it really doesn't amount to much.
Some might say what I need to do is invest in a better accountant but what I'm starting to believe is that what I really need to do is invest in a better Congress.