Published: Wed, January 31, 2018
Worldwide | By Isabel Fisher

Tax cuts are working already

Tax cuts are working already

Trump could maybe claim that by saying "biggest tax cuts and reforms", he's not simply lying about the scale of the new tax law.

The White House previously estimated that corporate tax cuts would eventually boost workers' earnings by at least $4,000 annually, a figure Trump cited during his speech.

Now, the list of companies who announced employee bonuses, more hiring initiatives, increases in 401 (k) matches and minimum wages is more than 130 companies and counting, per Freedom Partners, a pro-free-market organization in the Koch network of organizations.

"These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law", he said.

Tax reform is good for Mississippi.

Tax reform was long overdue, and I applaud our president and this Congress for working together to make meaningful change for a better America and a better Kentucky.

The Hammock Source in North Carolina was one of many companies to announce employee bonuses following the passage of the tax bill.

"Over the previous year, Congress and the Administration have set their sights on removing the barriers and brakes holding our economy back and stifling job creation". The Tax Cuts and Jobs Act is making that happen - and quickly.

While the changes will remain to be seen, Towarnicky warns employers faced with reinvesting their tax savings that those rates may not remain in effect indefinitely.

Starbucks announced that more than 150,000 hourly wage workers, who clock in 20 hours a week or more are getting more than $250 million in new employee benefits, including a pay increase, stock grants and paid sick leave.

"We served more customers more often, achieved our best comparable sales performance in six years, gained share in markets around the world and made tremendous progress with growth platforms such as delivery, mobile order and pay and Experience of the Future", CEO Steve Easterbrook said in a statement. Regardless of your political leanings, no one can deny the direct benefits of the Federal Tax Cuts and Jobs Act for families, individuals and businesses nation-wide.

As for increasing or accelerating pension plan contributions, Ashmore says with the tax law change the majority of employers have a short-term opportunity to make a pension contribution and potentially deduct at a higher tax rate at the beginning of 2018. And while some companies are attributing boosts in hourly compensation or one-time bonuses to the Republican-backed tax reform plan, a new Reuters/Ipsos poll found that few usa employees expect to see their employers' tax cuts reflected in their paychecks.

However, economists and labor experts say it will take years to fully assess the economic impact of the tax bill.

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