Press Contact Information

  • Twitter Widget

Print

Before Congress, Minnesota Job Creator Affirms Success of Tax Reform

Chairman Paulsen and Richard Hampton of Rogers, Minn-based Circuit Interruption Technology, Inc. before a hearing of the Joint Economic Committee in Washington, D.C. on April 11, 2018

 

Congressman Erik Paulsen (R-MN), Chairman of the Joint Economic Committee, on Wednesday led a hearing on unleashing America’s economic potential and how the Tax Cuts and Jobs Act is growing our economy. Among the witnesses in Wednesday’s hearing was Mr. Richard Hampton, Chairman of the Board of Circuit Interruption Technologies (CIT), Inc., of Rogers, Minn. Paulsen invited Hampton to testify before the hearing to share the benefits of tax reform for his business and his employees.

Chairman Paulsen opened the hearing by recounting the positive economic news of the last several months, highlighting job growth, higher business investment and bigger paychecks as benefits to the pro-growth economic policy of the last 14 months.

“If we lift the government constraints of high taxes and heavy regulation that weighed down our potential, our economic potential can rise,” said Chairman Paulsen. “When growth is strong, businesses have the confidence to invest, jobs are plentiful, potential entrepreneurs become willing to risk starting a business and American households become more prosperous.”

Hampton, who chairs CIT’s Board, began by telling the Committee the business’s home-grown story.

“It was started in 1999 by my son, Jeffrey, shortly after he graduated from business school…it moved from selling fuses and circuit breakers to a line of business I had experience with, electro-mechanical relays and switches…four years ago we moved from a smaller facility in Spring Lake Park to a larger facility in Rogers,”Hampton said.

Hampton explained to the Committee how America’s existing tax structure cost jobs.

“The long-term drag of a burdensome tax system likely played a role in the migration of relay and switch manufacturing from North America to Asia,”Hampton said. “Essentially, the tax system punished us for keeping profits in the company.”

Hampton praised the Tax Cuts and Jobs Act and explained the steps his company was taking as a result of the tax savings. Hampton said that as a result of tax reform, CIT:

  • Awarded an extra week of pay to all employees
  • Expanded its workforce by 10 percent
  • Funded its employee 401(k) program with no matching required at 5% of employee income
  • Upgraded growth projections from five percent growth to 30% growth in 2018

“I believe the lower tax will allow CIT to position itself for continued growth for the coming decade. More might be done, but this historical change alone is energizing and exciting to all our team, employees and management alike,”Hampton concluded.

“Richard Hampton and CIT are an American success story, rising out of nothing, growing and putting Minnesotans to work with good-paying jobs, and it’s a story that takes places all over America,”said Chairman Paulsen after the hearing. “For small and growing businesses like CIT, tax reform means the difference between just making ends meet and being able the enter new markets, invest in new equipment and secure new customers. This means more jobs for Minnesota families – and more money in the pockets of these families at the end of each month. I’m grateful Mr. Hampton made the trip to Washington to share his story with my colleagues.”