Tax reform bill passes and immediately businesses promise to put their savings in the hands of the workers
On Dec. 20, Congress finally passed its historic Tax Reform Act and we emphasize the word historic because the government had not done any meaningful tax reform since the Reagan years in the 1980’s.Â And perhaps what is least astounding in the vote is that not one single Democrat crossed the aisle to vote Yea with the Republicans.
However as they say, irony is a dish best served cold.Â And within hours of New York Senator Chuck Schumer claiming that companies like AT&T would only use tax cuts to benefit the rich and their shareholders, the telecommunications company instead announced they would be giving out bonuses to all 200,000 of their employees before Christmas, and will be spending an additional $1 billion next year in new capital expenses.
Schumer, at a press conference on Wednesday, argued that the Republican tax reform bill will only increase corporationsâ€™ profits while doing nothing to benefit the average American worker.
â€śI love the example of AT&T,â€ťÂ SchumerÂ contended. â€śOver the last ten years, AT&T has paid an average tax rate of eight percent a year. They have 80,000 fewer employees today than they had then.â€ť
The New York DemocratÂ added, â€śTax breaks donâ€™t lead to job creation. They lead to bigÂ CEO salaries and money for the very, very wealthy.â€ť
After the congressional Republicans passed the Tax Cuts and Jobs Act,Â AT&TÂ announcedthat they plan to invest an additional $1 billion in the U.S. in 2018 and pay a special bonus of $1,000 to more than 200,000 U.S. employees once the Republican tax reform bill is signed into law. –Â Breitbart
And AT&T was not the only companies to immediately come out and announce they were expanding jobs, paying out bonuses, and even increasing wages for their workers.Â Fedex reportedly is expecting to create thousands of new jobs due to the economic impact and growth that will come from the tax cuts, and even much maligned Wells Fargo announced they will not only be giving out bonuses to employees, but will increase wages so that the lowest paid worker will earn at least $15 per hour.
The Democrats could quite possibly have signed their death warrant by abstaining from voting yes on tax reform, because if economic growth explodes between now and November of next year, and Americans see real increases to their paychecks thanks to tax cuts and the removal of the Obamacare mandate, then every candidate running against a Democrat will have ample ammunition to unseat dozens of House and Senate members going up for re-election just by simply showing how little they cared about the common man in returning more of their money back to their wallets.
Kenneth Schortgen JrÂ isÂ a writer forÂ The Daily Economist,Â Secretsofthefed.com,Â Roguemoney.net, andÂ Viral Liberty, and hostsÂ the popularÂ youtube podcastÂ on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.