How the Trump tax cuts helped one small business grow

Small businesses are the backbone of the American economy.

They employ more than 61.5 million people, nearly half of all working Americans, and the 2017 Tax Cuts and Jobs Act helped them expand and raise their employees’ standard of living.

Rafael Arroyo is one of the millions of employers who did just that.

The Nevada small business owner, who has been an entrepreneur his entire professional life, runs Smog Plus, an automobile emissions testing company based in the Las Vegas Valley. He says permanently extending the Trump tax cuts is the only way to help American businesses compete in an inflationary environment.

Smog Plus used Trump tax cuts to help employees who help Las Vegas residents

Rafael is a creative problem solver who aims to save his customers time and money.

He launched the family-owned Smog Plus in 2008 as an emissions testing center. Recognizing that his team also could help residents tackle another time-consuming task — licensing and registration — Smog Plus later became the first emissions station in Clark County to offer full DMV services.

“We go to the DMV for people who don’t have the ability to go,” said Rafael proudly. Unlike the DMV, Rafael’s locations are open with extended hours. Some are open seven days a week. Smog Plus locations also do not require an appointment.

To date, Smog Plus has processed more than 50,000 DMV transactions for its clients.

Rafael’s employees work hard to serve the community and provide great customer service, and the TCJA helped Rafael give back to these dedicated team members. “Because I have an incentive-based pay structure, I was able to take that money that I saved and reinvest that back into my employees and raise their wages and raise their commissions,” said Rafael.

Tax Cuts and Jobs Act helped Rafael expand to 10 locations

Rafael also used savings from the Trump tax cuts to expand Smog Plus’ footprint in the community so it could serve more residents.

“The Tax Cuts and Jobs Act was a real opportunity that allowed me to grow and expand,” explained Rafael. “I was able to add locations and hire a lot of new employees during that time. … It was a great period of growth for my company.”

After the Trump tax cuts, Smog Plus expanded from seven locations to 10 in the Las Vegas Valley. And it added 10 new team members. The company employs more than 30 people.

While the TCJA had an immediate positive impact on Smog Plus, mom-and-pop businesses like Rafael’s are now dealing with higher input costs and labor issues.

At a time when they are already struggling to keep doors open, they do not need the added burden of higher taxes. That’s why Rafael says Congress must act to extend the Trump tax cuts.

Rafael Arroyo: Lawmakers must make Trump tax cuts permanent

Unless Congress acts by the end of 2025, crucial provisions of the TCJA will expire. Rafael said extending the Trump tax cuts is the only way to protect the gains his business and employees have made.

Tax cut expirations will not just affect entrepreneurs like Rafael, however. Most Americans will see their taxes go up. In fact, taxes will rise by $1,500 a year for the average family of four.

Raising taxes is unacceptable at a time when, like small businesses, Americans continue struggling with the effects of Bidenomics. Higher prices are costing us $12,000 more a year on average, in addition to sky-high interest rates and stagnant wages.

Rafael knows raising taxes right now is not right. Do members of Congress?

“I think it’s very, very important for people to support the Tax Cuts and Jobs Act,” concluded Rafael. “It’s an essential part of keeping and protecting our prosperity here in America, especially with the inflationary environment that we’re in right now.”

Would you like to join Rafael in telling our leaders in Washington to make the Trump tax cuts permanent? Make your voice heard.