Washington, D.C. – In case you missed it, U.S. Congressman Warren Davidson (R-OH) recently spoke with host Lisa “Kennedy” Montgomery on Fox Business News about his viewpoints as an Ohio businessman and tax reform.
Warren Davidson on State and local taxes.
“… For taxes you just need to get the policy right. Fundamentally, the state and local tax debate is an interesting one. I think everyone’s going to have to give a little bit to get a reform that is truly going to grow our economy. The most important thing, as your segment with the President really highlighted, is how important it is that we get our economy growing and that’s going to benefit everyone.”
Warren Davidson tax reform and retirement plans.
“… Fundamentally, when you look at the savings rate people have for retirement, far too many people are dependent upon social security as about their only form of income in their retirement years. We really have that deduction on the tax system as it is today to encourage people to save for retirement – I expect it [401(k)’s and state and local deductions] will survive.”
Warren Davidson on State and local taxes.
“… For taxes you just need to get the policy right. Fundamentally, the state and local tax debate is an interesting one. I think everyone’s going to have to give a little bit to get a reform that is truly going to grow our economy. The most important thing, as your segment with the President really highlighted, is how important it is that we get our economy growing and that’s going to benefit everyone.”
Warren Davidson tax reform and retirement plans.
“… Fundamentally, when you look at the savings rate people have for retirement, far too many people are dependent upon social security as about their only form of income in their retirement years. We really have that deduction on the tax system as it is today to encourage people to save for retirement – I expect it [401(k)’s and state and local deductions] will survive.”
Warren Davidson on the tax reform for small business owners and the economy. Highlights expensing and wage growth.
Kennedy: Congressman Davidson, so you are a small business owner. You understand how many small business owners are hamstrung on this country because of high taxes and limited available capital. So what will this tax plan do for small business owners and for the economy?
“I think it’s going to be tremendous, and one of the secret sauce pieces is full and immediate expensing. So there has been things like 179 and bonus depreciation that help businesses accelerate the payback of their investments. But when you do full and immediate expensing, I think that’s going to be tremendous for the economy. Fundamentally, the easy-to-understand part is when you pay less taxes you’ve got more capital left to invest in the business. A big portion of that, given the tight job market for skilled labors, is going to go to wage inflation, and so the most skilled people are going to finally start seeing their wages go up and I think taxes have been crowding that out.”
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