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Boom.

One of the premises of a tax cut is that it allows the taxed person or company to spend more money, which in turn helps the economy grow.

As proof, here’s what has happened with some businesses since the passage of the Republican / Trump tax plan:

Gee, that was fast. Just one day after the tax bill was finally passed, companies were already scrambling to do things with their money. It’s an impressive list and, no doubt, not comprehensive:

AT&T’s CEO said the company will hand out bonuses of $1,000 to more than 200,000 of its workers in the U.S., thanks to tax reform.
Comcast NBCUniversal, not to be outdone, also handed out a special bonus of $1,000 to more than 1,000 employees, thanks to “passage of tax reform and the FCC’s action on broadband.”
Boeing’s CEO Dennis Muilenburg said his company will spend $300 million, with $100 million going to charity, $100 million for workforce development (including training and education for Boeing workers), and $100 million for “workplace of the future” infrastructure.
Fifth Third Bankcorp said it will give 13,500 employees a bonus and lift the minimum wage to $15 an hour.
Wells Fargo also raised its minimum wage to $15 an hour, and said it would donate $400 million to community and nonprofit groups in 2018.

As for support, some 255 groups and major corporations have weighed in with support for the tax cuts, according to Senate Majority Leader Mitch McConnell.

While it is true many of the actual tax changes won’t be in effect for this tax year, many individuals will feel the benefits starting as early as February. That’s when the IRS is expected to issue withholding instructions to American businesses.

So many workers will suddenly see a nice increase in their paycheck, thanks to the Republicans’ tax reform. For the average earner, it will work out to somewhere in the neighborhood of $2,000 in additional income per year, according to estimates.

Boom.



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One Response to “Boom.”

  1. bob says:

    I have no concern about whether or not tax cuts grow the economy. The number one reason for any tax cut is because it’s OUR money. Another reason for tax cuts should be to starve the beast(government). Unfortunately that never happens. This entire system is completely immoral. It is built on thievery.

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