ABA members speak out on tax cuts
By ABA Media
The Insider recently posed the following industry question to several ABA members: What effect has President Trump’s Tax Cuts and Jobs Act had on your business, especially as it relates to bonus depreciation and pass-through income?
Here is what our members had to say:
“As a subchapter S-corporation and in anticipation of a lower tax rate (in regard to pass-through income), the financial responsibility of each employee’s individual health care premiums has been reduced from 50 percent to 20 percent. Needless to say, this is a great additional benefit for both the company and its employees.”
—Bryan Cole, President
Super Holiday Tours, Orlando, Fla.
“Bonus depreciation is a valuable tax savings tool for our business. The 100 percent cost reduction will allow us to recoup full value of the investment and drive economic growth. The 20 percent deduction of pass-through income should reduce personal income taxes of owners. I believe this benefit is a catalyst to grow businesses, especially our little business that has invested so much over the past year.”
—Chris Shepler, President
Shepler’s Mackinac Island Ferry, Mackinaw City, Mich.
“I do not think we may be on the side where we see a lot of benefit. As a small business, we have been using bonus depreciation every time that it has been allowed, and we will continue to do so. As far as the pass-through, we are a C-corporation, so that does not apply to us.”
—Jodi Merritt, President
H&L Charter , Rancho Cucamonga, Calif.
“We purchased new equipment near the end of the year in 2017 and were able to claim 100 percent of the depreciation as a result of the new tax cuts, something we hadn’t planned for going into December. The new tax cuts clearly made a difference in lowering our taxes for the year and will for the coming years as we plan more equipment purchases.”
—Chad Cushman, President
Indian Trails, Owosso, Mich.