[Congressional Record Volume 164, Number 169 (Thursday, October 11, 2018)]
[Senate]
[Pages S6807-S6808]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX REFORM
Mr. RISCH. Mr. President, as you may know, small businesses are
thriving in one of the best economic climates that we have seen in
several years. The National Federation of Independent Business's Small
Business Optimism Index for August saw its highest reading ever over
its 45-year history and the MetLife and Chamber of Commerce's most
recent quarterly Small Business Index found that a substantial majority
of small business owners have a positive outlook of their business and
of the overall economy.
I believe that this uptick in small business confidence is due in
large part
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to the Tax Cuts and Jobs Act that passed the Senate and was signed into
law last year. Over the 9 months since its passage, our country has
witnessed the positive impact that the law has had on our economy.
Companies of all sizes have directly benefited from various provisions
of the law and as a result are paying out bonuses, raising wages, and
purchasing new equipment for their businesses. As chairman of the
Senate Committee on Small Business and Entrepreneurship, I was a strong
supporter of the tax law because I believed it would allow small
business owners to keep more of their hard-earned money, make more
investments in their businesses, and increase the overall health of our
economy. Over the last few months, I have been making this series of
speeches to draw attention to the benefits this law provides for small
businesses.
Since passage of the law, many observers have given too much
attention to individuals and corporations that have benefited from
certain provisions of the law, but not nearly enough attention has been
given to the benefits that small businesses have received. I rise today
to spotlight how tax reform is benefiting Sko-Die, Inc., a small
business located just outside of Chicago in Morton Grove, IL. Sko-Die,
Inc., provides their customers with high-quality steel laminations,
heavy gauge metal stampings, and machining services. From design to
production, the company provides original equipment manufacturing
services for a variety of sectors including the food, power generation,
medical, and aerospace industries. Sko-Die is a family-run business
started in 1947 by the Steininger family. The current president,
Patrick Steininger, has led the company since 2002 and is the third
generation of the family to helm the company. Sko-Die has about 70
employees, boasts a 60,000-thousand-square foot production facility,
and operates numerous punch presses ranging in size from 5 to 300 tons.
Because of the Tax Cuts and Jobs Act, this family-owned custom metal
stamping business has been able to pass on some its tax savings to
employees, raising the average wages of its employees by about 3
percent. Sko-Die also made a $1 million investment in new equipment,
which included a new die grinder and a new metal press. Before the
implementation of the new tax law, small businesses had to deal with a
complex expensing formula that took many years to take advantage of,
which made equipment purchases much less attractive to small business
owners. The accelerated depreciation of equipment purchases for small
businesses is one of the many reasons that I was a strong supporter of
the Tax Cuts and Jobs Act.
Overall, the new tax law has been good for small businesses; has
allowed many small businesses to increase their capital investments,
hire additional workers, and increase wages; and will lower small
businesses' annual tax payments. I am happy to see that small
businesses like Sko-Die, Inc., are able to reduce their tax burden by
making use of this accelerated depreciation provision and are using
those tax savings to raise its employees' wages. I look forward to
watching the company's continued success.
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