A large Warren County employer says it’s benefiting from corporate tax cuts. Today, they’re giving Senator Pat Toomey a tour.
Senator Pat Toomey is a big supporter of the Tax Cuts and Jobs Act, and that’s why he’s visiting this Warren County Company to learn about one of the success stories. Toomey toured Ellwood National Forge in Irvine this morning.
The tax reform is incentivizing the Ellwood Group to invest $10 million into the plant, including an expansion that will house a massive robot.
Ellwood Group CEO David Barensfeld says 500 people currently work at the plant; 200 of them making military equipment. “Two-thousand-pound capacity to automatically transfer unfinished bombs, so that they can be finished and sent to the Air Force… And, we expect to expand employment by, perhaps, 10 percent in the next short while, because of the increased demand for bombs.”
The Tax Cuts and Jobs Act, signed into law in December, lowered the maximum corporate income tax rate to 21%.
Toomey says, “The tax reform really was designed to make it more affordable for businesses to invest new capital and that’s exactly what you see happening here.”
Senator Toomey says he expects this kind of success to be duplicated across the Commonwealth and even the country. “I’ve very optimistic that this is an expansion of our economy, and that growth that is now occurring at a higher level can continue.”
Barensfeld tells us, “We were able to make an investment that we wouldn’t have made but for the tax cut that happened.”
Construction work on the addition is expected to wrap up by the end of September with it being operational by the end of the year.