While today’s Dallas Fed manufacturing activity index dipped to 2 from 6.9 in March, missing expectations of a rebound to 10, and the lowest print since January, among the generally downcast respondents comments was the following mini-essay written by a small business respondent in the “miscellaneous manufacturing” space, which revealed what may be the most gushing praise of the Trump economy yet. Presented below without further comment:
When reviewing our financial performance over the last few years, the outlook for the company has significantly improved, in large part due to the change in taxes. During the Obama administration, our effective total-taxes-paid rate was over 70 percent, and now under the Trump administration, our effective total-taxes-paid rate is about 50 percent.
This has allowed us to hire more people, increase compensation, pay larger bonuses, purchase more manufacturing equipment and make more investments.
For those people who say that lower taxes do not help small and growing businesses, they are completely mistaken. Small and fast-growing businesses need as much after-tax profits for expansion and investments as possible to continue to be successful.
If you want the private sector to expand and hire more people, it’s critical we have sufficient after-tax money to reinvest and justify putting more time and effort in our businesses.
The fastest way to make people give up is seeing all their hard work and the results of their efforts redirected to wasteful and often counterproductive government spending and programs.