Tax Cut Dreams: Solution Providers Pledge More Staff, Investment If Trump Plan Wins
Submitted by Michael Novinson on
(NOTE: This story was originally posted to CRN.com April 28.)
What would solution providers do with more money, courtesy of the federal government? Executives said they'd add salespeople and redouble investments in cutting-edge software and services if the Trump administration's business tax reform succeeds.
President Donald Trump's tax plan, released last week, calls for cutting the 35 percent corporate income tax rate to 15 percent to stimulate small business growth. The cuts would need to pass through Congress to be enacted.
DSA Technologies would add to its professional services team or pre-sales engineering staff if the corporate tax rates are ultimately cut, President Michael Pearson told CRN. The Oak Grove, Calif.-based company would also pursue new software investments and ways to automate and do things better, Pearson said.
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"A tax break would help us advance some of the things we're currently doing," Pearson said. "Is there additional software we should invest in in our ConnectWise [management software deployment]? Is there a better tool for network monitoring and remediation?"
Atrion Communications Resources had already begun scaling up its salesforce following Trump's election, and that process will only accelerate if the corporate income tax cuts goes through, President and CEO Pat Grillo told CRN. The Branchburg, N.J.-based company had added one salesperson in the past month in response to the friendlier regulatory environment, Grillo said, and plans to add two more.
As the 100-percent owner of a privately-held company, Grillo said he would typically convert profits into bonuses for himself and his employees to avoid the high corporate tax brackets. With a lower tax rate, Grillo said he would be able to keep the money in his company and increase the cash flow of his business.
"Right now, we try to take a lot of money out so that we don't have to pay the higher tax amounts on it," Grillo said. "But this would mean I could keep my money in and know I'm not going to be clobbered."
Atrion would additionally add more resources and materials to its Center of Excellence, Grillo said, which allows Fortune 500-sized customers to do proof-of-concept work around holistic solutions.
"I'm very excited to see this proposal," Grillo said. "I hope it goes through."
Las Vegas Med I.T. expects to see its customers spend more on IT if there's a lower corporate tax rate, which in turn would allow Founder and President Leo Bletnitsky to add personnel.
Bletnitsky specifically said the Las Vegas-based company would be interested in adding staff to enhance customer service and refreshing some of the company's internal technology.