Today's Hotelier - November 2017 - 46

SMALL BUSINESS

 3-MINUTE READING TIME

TA XES

The path to economic
prosperity is well walked
The United States has a long history of using tax cuts to spur growth.

H

ISTORICALLY, TAX CUTS HAVE BEEN USED
as a tool to relieve Americans of some financial burden and, in turn, create economic
prosperity. Right now, we have the opportunity to do it again.
One of the most cited tax relief packages in
modern American history was under President Ronald Reagan -
the popular actor turned politician. His 1981 Economic Recovery
Act cut taxes for essentially all Americans by roughly 25 percent. And his 1986 Tax Reform Act furthered this policy goal
by simplifying the tax code and streamlining tax brackets.
Even more impressive is the effect it had on individual drive
and purpose. You see, at the previous top tax rate of 70 percent, Americans were content with making moderate incomes
because once they entered the top tax bracket, Uncle Sam was
entitled by law to over two-thirds of their hard earned cash. But
once the rate was lowered, the individual's drive to innovate
and build for financial gain was restored - creating a larger
pool of taxable income.
The effect was extraordinary. Tax revenues actually increased
from $500 billion to $1 trillion during the 1980s - all while people
were able to keep more of their own money and invest it in
bettering themselves, their businesses and their communities.
This economic principle was even coined the "Laffer Curve."
But this national tradition of lowering taxes in order to
achieve economic expansion and more government revenue
is not a modern phenomenon. In fact, President Calvin Coolidge
knew it quite well. At the end of World War I, the top tax rate
was 77 percent and by the time Coolidge left office, the rate
had dropped to a mere 24 percent. Because of this tax relief,

4 6  | NOVEMBER 2017 | TODAYSHOTELIER.COM

©ISTOCK/KWASNY221

by ALFREDO ORTIZ

tax revenue once again went up - with much of it originating
from the upper class. For those making $100,000 a year or more,
tax revenue rose by roughly $5 billion when taking inflation
into account.
In 1963, President Kennedy also called for tax cuts. His
plan to reduce taxes by $13.5 billion was initially blocked by
Congress, but was eventually passed by his successor, President
Johnson, after his untimely death. Once implemented, the
policy dropped the unemployment rate by 1.4 percent, as well
as raising tax revenue.
Our country now has a similar opportunity. U.S. small businesses can pay federal tax rates as high as 40 percent - one of
the highest rates in the developed world. And just as tax cuts
spurred economic expansion in the past, they can do it again
by reinvigorating the engine of our modern economy - independent small businesses and franchises.
A recent nationwide poll of small-business owners conducted
by the Job Creators Network reveals the economic power that
small-business tax cuts would unleash. According to the poll,
a majority of respondents reported that financial savings from
tax cuts would be reinvested back into their businesses and
employees. This means hiring more workers, raising wages,
and expanding to new locations - the cornerstones of economic growth.
As you can see, a formula for economic prosperity has already
been discovered. By unleashing the job creation potential of
small businesses through significant tax cuts, we too can
experience economic growth of historic proportions.
■
Alfredo Ortiz is the president and CEO of the Job Creators Network.


http://www.TODAYSHOTELIER.COM

Table of Contents for the Digital Edition of Today's Hotelier - November 2017

Letter From the Chairman
Letter From the President & CEO
The Perfect Storm for Hotel Owners
Design That Brings People Together
New Brands Design for a New Kind of Hotel Experience
Time for a Group Sales Tune Up
AAHOA Interview
Marketing
Technology
Small Business
Finances
HR
AAHOA @ Industry Events
AAHOA Founding Members
AAHOA Vendor Partners
Classifieds
Advertiser Index
Today's Hotelier - November 2017 - intro
Today's Hotelier - November 2017 - cover1
Today's Hotelier - November 2017 - cover2
Today's Hotelier - November 2017 - 3
Today's Hotelier - November 2017 - 4
Today's Hotelier - November 2017 - 5
Today's Hotelier - November 2017 - 6
Today's Hotelier - November 2017 - 7
Today's Hotelier - November 2017 - 8
Today's Hotelier - November 2017 - 9
Today's Hotelier - November 2017 - Letter From the Chairman
Today's Hotelier - November 2017 - 11
Today's Hotelier - November 2017 - Letter From the President & CEO
Today's Hotelier - November 2017 - 13
Today's Hotelier - November 2017 - 14
Today's Hotelier - November 2017 - 15
Today's Hotelier - November 2017 - 16
Today's Hotelier - November 2017 - 17
Today's Hotelier - November 2017 - 18
Today's Hotelier - November 2017 - 19
Today's Hotelier - November 2017 - The Perfect Storm for Hotel Owners
Today's Hotelier - November 2017 - 21
Today's Hotelier - November 2017 - 22
Today's Hotelier - November 2017 - 23
Today's Hotelier - November 2017 - Design That Brings People Together
Today's Hotelier - November 2017 - 25
Today's Hotelier - November 2017 - 26
Today's Hotelier - November 2017 - 27
Today's Hotelier - November 2017 - New Brands Design for a New Kind of Hotel Experience
Today's Hotelier - November 2017 - 29
Today's Hotelier - November 2017 - 30
Today's Hotelier - November 2017 - 31
Today's Hotelier - November 2017 - Time for a Group Sales Tune Up
Today's Hotelier - November 2017 - 33
Today's Hotelier - November 2017 - 34
Today's Hotelier - November 2017 - 35
Today's Hotelier - November 2017 - 36
Today's Hotelier - November 2017 - 37
Today's Hotelier - November 2017 - AAHOA Interview
Today's Hotelier - November 2017 - 39
Today's Hotelier - November 2017 - Marketing
Today's Hotelier - November 2017 - 41
Today's Hotelier - November 2017 - 42
Today's Hotelier - November 2017 - 43
Today's Hotelier - November 2017 - Technology
Today's Hotelier - November 2017 - 45
Today's Hotelier - November 2017 - Small Business
Today's Hotelier - November 2017 - 47
Today's Hotelier - November 2017 - 48
Today's Hotelier - November 2017 - 49
Today's Hotelier - November 2017 - 50
Today's Hotelier - November 2017 - 51
Today's Hotelier - November 2017 - Finances
Today's Hotelier - November 2017 - 53
Today's Hotelier - November 2017 - 54
Today's Hotelier - November 2017 - 55
Today's Hotelier - November 2017 - HR
Today's Hotelier - November 2017 - 57
Today's Hotelier - November 2017 - AAHOA @ Industry Events
Today's Hotelier - November 2017 - 59
Today's Hotelier - November 2017 - AAHOA Founding Members
Today's Hotelier - November 2017 - 61
Today's Hotelier - November 2017 - AAHOA Vendor Partners
Today's Hotelier - November 2017 - 63
Today's Hotelier - November 2017 - 64
Today's Hotelier - November 2017 - 65
Today's Hotelier - November 2017 - 66
Today's Hotelier - November 2017 - 67
Today's Hotelier - November 2017 - 68
Today's Hotelier - November 2017 - 69
Today's Hotelier - November 2017 - 70
Today's Hotelier - November 2017 - Classifieds
Today's Hotelier - November 2017 - 72
Today's Hotelier - November 2017 - 73
Today's Hotelier - November 2017 - 74
Today's Hotelier - November 2017 - 75
Today's Hotelier - November 2017 - 76
Today's Hotelier - November 2017 - 77
Today's Hotelier - November 2017 - 78
Today's Hotelier - November 2017 - 79
Today's Hotelier - November 2017 - 80
Today's Hotelier - November 2017 - Advertiser Index
Today's Hotelier - November 2017 - 82
Today's Hotelier - November 2017 - cover3
Today's Hotelier - November 2017 - cover4
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