Tax Reform

Floor Speech

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Mr. RISCH. Mr. President, as you may know, I voted in favor of the Tax Cuts and Jobs Act that became law last year. Every day we are learning more about the positive impact this law is having on the economy and about average Americans having more money in their paychecks. While it is important to appreciate the effects that the tax law had on individuals, we should not forget that small businesses have benefited from the law as well. As chairman of the Senate Committee on Small Business and Entrepreneurship, I supported the legislation because I believed it would allow small business owners to invest in their businesses, increase overall economic growth, and reduce taxes for the millions of small businesses who employ the majority of Americans in every part of the country. I also saw the potential that the legislation would have, not just to give an economic boost to small businesses in my home State of Idaho, but to spark renewed confidence from small businesses across the country. A couple of weeks ago, I began this series of speeches to bring attention to small businesses that have benefited from this law.

While there are many stories about small businesses benefitting from tax reform, I rise today to talk about Dempsey Wood Products in Orangeburg, SC. Dempsey Wood Products offers a wide variety of high- quality pine and hardwood products to its customers. The company serves many different industries with kiln-dried lumber for the housing industry, pallet stock for pallet manufacturers, debarked chips for the paper industry, mulch for landscapers, and sawdust for alternative fuel use. The company employs about 80 to 100 workers and has an extensive sawmill and dry kiln operation. Ronny Dempsey started the company in 1988 and has spent all of his life around the lumber industry. His father, Charles Parker Dempsey, worked in various sawmills over the course of his career and eventually was the coowner of a sawmill that he later sold. Today Parker Dempsey, a third-generation sawmill operator, has taken over as president, though his father, Ronny, is still by his side as vice president of the company.

This family-owned small business has already benefitted greatly from the tax law that was passed last year. They have announced plans to upgrade their sawmill, purchase a new dry kiln, and invest in a new planer mill over the next 5 years. They expect the capital expenditure to total $7 million and estimate that they could add a second shift in the near future, thereby creating new jobs in the Orangeburg community. These investments were viable for the company due to the accelerated depreciation provisions contained in the Tax Cuts and Jobs Act. This section of the law allows companies to deduct the value of any new equipment purchased in a single year, instead of over several years. Tax reform has had a material impact on small businesses like Dempsey Wood Products and their employees. Overall, the new law has increased small businesses' confidence, employee bonuses and wages, while lowering taxes and spurring new capital investment.

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