The Working Families Tax Cut (WFTC) passed by Congressional Republicans last year contained several pro-worker policies. In addition to direct tax cuts, the legislation delivered tax relief for small businesses across the country including wholesaler-distributors, allowing them to provide extensive benefits and opportunities for their workforce including competitive pay, generous health and wellness benefits, profit sharing programs, and mentorship, training, and apprenticeship programs.
Specifically, the WFTC provided strong tax cuts for individuals such as a permanent doubled standard deduction, child tax credit, and lower individual tax cuts. According to research by the Tax Foundation, the average taxpayer will see a $2,300 tax cut in 2026 thanks to the WFTC. The WFTC also provided tax cuts for small businesses in the wholesale distribution industry, allowing them to reinvest in their workforce by continuing to offer high paying jobs, strong employee benefits, and new training programs.
Wholesaler-distributors offer well-paying, skilled jobs with a culture of living in and giving back to the communities they serve. Employee costs including wages, benefits, and taxes make up half to three fourths of total expenses for wholesaler-distributors. According to the Bureau of Labor Statistics, the average hourly wage for production and nonsupervisory workers in the industry is $32.74 per hour, higher than the typical private sector non- supervisory wage. 87% of wholesaler-distributors offer healthcare, 90% offer paid sick leave and 83% offer retirement benefit plans.
Testimonials from wholesale distribution businesses on how the WFTC allows them to provide high paying jobs, benefits, and training programs can be found below:
Jim Derry, CEO of Field Fastener, an industrial distributor based in Rockford, Illinois
“Over the nearly 35 years of working together, our business has expanded from 12 employees to over 360 team members. We have added a new generation of our family in leadership roles, and we’ve also undergone tremendous growth, achieving an 18% average growth rate per year due to our world class culture and commitment to remaining customer centric in an increasingly virtual world. But the most fulfilling part of my career is fostering a work culture that reflects our personal and company-wide core values. A work culture whereby our team members — and by extension, our company — thrive both at work and outside the office.
The Working Families Tax Cut provides important tax relief for workers and small businesses which will mean that businesses like ours will have extra resources to invest in hiring new team members, increasing wages, provided more generous benefits and career development, and even giving our team members paid time off for volunteering.”
J. D. Ewing, Chairman & CEO of COE Distributing, an employee-owned office furniture distributor based in Southwest Pennsylvania
“As a business owner, I know firsthand that our success depends on the hardworking people who keep operations running smoothly, efficiently, and profitably. Pro-business tax policies like the Working Families Tax Cut and the 2017 Tax Cuts and Jobs Act aren’t just about companies, they directly benefit workers and local communities. These pro-business policies have resulted in real, tangible gains for our employees. For instance, in the past ten years, we have increased our hourly wage by 50% and currently offer strong worker benefits including a 401(k) program with company matching, profit-sharing and an Employee Stock Ownership Plan.”
Kathryn Poehling Seymour, CEO and President of First Supply, a proud fifth-generation family-owned business headquartered in Madison, Wisconsin
“As the CEO of First Supply, a Madison-based multigenerational, family-owned plumbing wholesaler founded in 1897, I have witnessed firsthand how sound tax policies enable us to grow and support our communities. First Supply operates on tight margins, so higher or lower taxes can be the difference between whether we are able to make new investments in our workforce and business.
Pro-business policies enacted through the Working Families Tax Cut will ensure we can continue offering competitive pay, strong benefits and opportunities for professional growth for our workers. For instance, we recently launched an Employee Value Proposition (EVP), which offers comprehensive benefits, including wellness programs at no cost and opportunities for reduced health plan rates. We also invest in career development through hands-on training centers, mentorship and apprenticeship programs that prepare the future workforce for success.”
Coley Herrin, President & CEO, Plumbing Distributors Inc, an independently-owned company based in Lawrenceville, Georgia.
“PDI is a family-owned plumbing distributor with 400 employees across four states in the South and prioritize a strong workplace culture that provides upward mobility for our employees and extensive benefits including profit sharing, 401(k) matches, and health benefits. The Working Families Tax Cut provided permanent, pro-business tax policy that will help ensure we are able to continue providing strong benefits to our workers and compete with big businesses.”
