Corporate bonus babies

Corporate bonus babies

The future is undetermined, but the new tax bill is already putting money in people's pockets.

When President Donald Trump signed the Republican tax-cut bill in December, supporters of the legislation cheered while critics went fully postal in their denunciations.

Democratic House Leader Nancy Pelosi characterized the legislation as a giveaway to the rich that is "one of the worst bills to be brought to the floor in the history of the United States."

Other critics exceeded Pelosi's vituperation, including former U.S. Treasury Secretary Larry Summer. He predicted the legislation will kill 10,000 people a year. Bill supporters, naturally, disagreed.

The question, of course, is open as to whether this legislation will super-charge the economy by putting more money in the hands of ordinary people, as supporters claim, or is the beginning of the end, as critics suggest.

But one thing is for certain, and it should please those on both sides of the debate.

The legislation lowers business taxes, including reducing the corporate tax rate from 35 percent to 21 percent.

Proponents argued that the cut is necessary to make the U.S. corporate tax rate more competitive with those of other nations and eliminate the incentive U.S. corporations had to reincorporate outside this country.

Now, as a consequence of the corporate-tax-rate reduction, numerous corporations — 15 so far and counting — have announced they're giving pay raises and cash bonuses to employees.

AT&T is giving $1,000 bonuses to 200,000 employees; Bank of America, $1,000 bonuses to 145,000 employees; American Airlines, $1,000 bonuses to 130,000 employees; and Comcast, $1,000 bonuses to 100,000.

The list goes on from there — U.S. Bancorp, Alaska Airlines, BB&T, JetBlue, Sinclair Broadcasting, etc. They're injecting billions of dollars into the U.S. economy.

While the news has welcomed by the public at large, critics of the tax bill have been remarkably ungenerous in their response. They've written off the pay raises and bonuses as publicity stunts.

Well, if they're publicity stunts, let's have more just like them.

This is real money being put in the pockets of regularly working folks, and that's good news anytime.

It's certainly safe to concede that the full effects of the new tax legislation are not clear. Critics may ultimately be proved correct in their bleak assessment of its worth.

But for now at least, the new tax bill is having the demonstrably positive effect of improving the lives of middle-class workers who can use, and deeply appreciate, the unanticipated financial boost they've just received.

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Glock21 wrote on January 12, 2018 at 8:01 am

Cherry picking the one-time bonuses and overdue COLAs that came with political nods and other behind the scenes interests for legal wrangling with the feds.

Then after regurgitating the trumpist propaganda you join them in ignoring the long term closings, permanent layoffs, and the lack of actual significant long term investment in growing jobs/wages and funneling overwhelmingly to their profits, pay and wealthiest investors.

And further ignoring supply and demand and basic market forces to play along with nonsense claims that businesses already making massive profits just needed more to expand, not corresponding demand increases.

But, sure. They rented us cheap. How much did they buy your integrity for to dance for them? Disgusting.