Letter to the Editor: Tax reform bill good for employees all over America
Saturday, January 13, 2018
We have had a long drought of stagnant wages, large numbers of people dropping out of the job market, high unemployment and big corporations hoarding their money. The financial rainfall coming from tax reform is a welcome sight.
American Airlines is handing out $1,000 bonuses to its employees. So are AT&T, Bank of America, Nationwide Insurance, Comcast, JetBlue Airways and US Bancorp.
This is on top of billions and billions of dollars these companies will invest in infrastructure. Comcast alone is planning to invest $50 billion in their infrastructure. That sounds like jobs, jobs, and more jobs.
Such announcements, coming from dozens of companies, have followed the passage of the Republican tax plan that President Donald Trump signed into law last month.
The plan slashed the corporate tax rate from 35 percent to 21 percent. These bonuses are a way for these corporations to share some of their tax savings with their workers.
The first overhaul of the U.S. tax code in 30 years is a real boost to lower-income and middle-class families.
One of the most uplifting for lower-income employees is the move that Walmart has made. Entry-level wages for employees will go to $11 per hour. Also giving out a large bonus to many employees.
CVS Health announced in October that if the corporate tax rate went down, it would create 3,000 permanent new jobs.
Bancorp says it will raise its minimum wage to $15 an hour and award its more than 13,500 employees with a $1,000 one-time bonus.
This tax reform bill will bring 13,000 hourly employees wage increases. Seventy-five percent of Bancorp’s employees will see a wage increase or receive a bonus.
Dennis Muilenburg, CEO of Boeing, praised Congress and the Trump administration saying “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
This year, Boeing expects to build about 750 airplanes. By the end of the next decade, Muilenburg expects that to grow to 900 planes.
Chris Edwards with National Review examined the liberal Tax Policy Center (TCP) and the conservative Joint Committee on Taxes (JCT), reports on the Tax reform bill.
His recalculation of those reports found that middle-income groups would get by far the largest cuts as a percentage of current income taxes. For example, households earning between $50,000 and $75,000 would get a 24 percent cut in 2019, while those over $1 million would get just a 6 percent cut.
While the bill was not perfect, it is good for our country.
Side note: Since President Trump’s election unemployment rate among African-Americans, according to the Bureau of Labor Statistics, fell below 7 percent for the month of December – the lowest mark for black Americans since the bureau began ... Overall unemployment rate is 4.1 percent.
My suggestion is, prepare yourself with some skills because the job market is going to be wide open, and you need to be ready.
Those who are working for minimum wage need to up their attitudes and skills because these new minimum wage rates will open up that market to more folks that want to work and smile and be grateful for their job.
Don’t forget: Not one Democrat voted for tax reform.