This wasn’t how it was supposed to work out. When the “Tax Cuts and Jobs Act” was passed by Congress and signed into law by President Trump, lower corporate taxes were supposed to fuel grow in jobs and the American economy.
That’s not what happened at Williamette Valley Vineyards, which reported sales rose 15% to $4.2 million and gross profit was up 14.7% to $14.8 million. But that $493,081 increase in income before income taxes wasn’t enough to offset a $628,280 increase in income tax provision, the company said.
“The higher income tax provision was the result of the 2017 income tax provision being smaller due to the cumulative effects of the “Tax Cuts and Jobs Act” enacted by the U.S. Government in 2017,” Williamette said.
Jim Bernau, Founder and President of the winery, said “We are pleased Income from Operations was up 15% for the year. Earnings are affected by” $314868 in preferred stock dividends, as result of raising “money needed for the planned winery near Dundee prior to construction. As we are able to deploy these development funds, we expect the projected earnings to more than offset the higher dividend costs.”