Posted on 12/22/2017 6:53:08 PM PST by MAGA2017
The Trickle-Down Mythmaking Begins
Several companies gave out raises after tax cuts passed Congress. But that was probably already going to happen anyway.
After Congressional Republicans passed their $1.5 trillion package of tax cuts on Wednesday, a number of companies responded by announcing raises or bonuses for their workers. Comcast said it would give $1,000 bonuses to more than 100,000 workers. Fifth Third Bancorp said it would give out bonuses and boost its minimum wage, with the cut giving the bank, in its words, “the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.” AT&T, Boeing, Washington Federal, and Wells Fargo did much the same.
The announcements seemed the result of some basic financial logic: Lower corporate taxes— the Republicans’ bill cut the corporate rate to 21 percent from 35 percent and included provisions to encourage businesses to bring cash back from overseas—would mean higher corporate profits and thus more money to pay workers with.
Indeed, the White House itself has estimated that tax reform would add $4,000 to the average worker’s annual paycheck, as a conservative estimate. And President Trump lauded the companies’ announcements, tweeting: “Our big and very popular Tax Cut and Reform Bill has taken on an unexpected new source of ‘love’—that is big companies and corporations showering their workers with bonuses. This is a phenomenon that nobody even thought of, and now it is the rage. Merry Christmas!”
Many economists, including the government’s own nonpartisan scorekeepers, dispute the notion that workers will get much of the gains from corporate tax reform, which President Trump signed into law on Friday. They argue that shareholders, not workers, stand to benefit the most.
(Excerpt) Read more at theatlantic.com ...
That extra grand for 1/2 a million employees or so (when you add up all the large companies that have offered this) aib’t no myth.
Saw a dim on Cavuto this AM. He asked “which provisions in the tax plan hurt the poor and minorities?” She said, basically, well we think that cuts will have to be made in welfare. Of course he said “are those in the bill? What specific cuts?” She just hemmed and hawed and repeated herself.
” They argue that shareholders, not workers, stand to benefit the most.”
So? Shareholders are all those 401k and IRA investors who have their retirement money in the the various funds, which include blue chips. Most of these people are in the middle class.
Here’s another non-myth. One of our clients (a dem) is very happy with Trump. He says he can now write off capital expenditures in the same year instead of depreciating over several years, so he’s writing off $100,000+ in manufacturing equipment he purchased. His employees are happy, too. They are getting a raise and since the client will have more operating funds in his pocket, he can buy more equipment and get more customers and hire more employees which means more work for us, too. A new Republican has been born in California. Thanks, Trump!
2020 is going to be sooo much fun!
There was no announcement of a bonus where I work.
But, after 8 years of no merit increases, it was announced that they would be reinstated as of the first of the year.
And, since 11/09/16, my 401k, along with other retirement investments have given me hope of retirement in 2018.
The bottom 80% work for us
Conversely the top 20% of us pay the Federal taxes.
Perreto principle.
I do have to question the perspicacity of people who work for a corporation and are bitter about the corporations "getting all the breaks". Where do they think that money in their pockets comes from?
Aren't companies saying they are giving out the bonuses and raises BECAUSE the tax cut was passed?
Well, duh! Why would you want to be an investor (shareholder) in a company where others (workers), who have no capital at risk, benefit more than you do?
This is a prime example of why teaching economics in school is essential. This drivel the Atlantic is putting out is not based on solid economics.
When are these Lefties going to figure it out that the people with the money are the ones who build businesses and create jobs? The workers wouldn't even have jobs to produce anything if not for the business itself, which is funded by the stockholders.
Those with their capital at risk have always been the ones who profit the most.
There is no end to the liberal rhetoric about the evils of this tax cut.
But remember - when Reagan went for re-election, he won with a simple statement: “ask yourself, are you better off than you were 4 years ago?”
That’s all Trump has to do.
Well...they left that part out. On purpose.
That accelerated depreciation is a huge thing. Yuge! Direct stimulus for job creation.
If dems think they need to pay more in taxes, nothing is stopping them from writing a check.
If the money goes to the economy at least it trickles down. If it goes to the government most of it goes into a black hole never to be seen again.
Hope the math works out for your retirement - been in that status for 3 years and it is highly recommended....
Yep. I retired 2 1/2 years ago. If I had known it was going to be this much fun, I would have retired right out of college and skipped the middle man!
Yes, liberals create myths about supply side economics all of the time. No surprise!
Here’s a little economics rap blast from the past!!!
Supply side economics is not a myth, it is our economy and it works. The Progressive movement tries to conceal this fact by calling it "trickle down economics".
Try to envision how a demand side economy would function in a nation of free people. A demand side economy can only serve people who have relinquished their rights to life, liberty, and their pursuit of happiness.
The Constitution grants Congress the power to tax and the power to influence interest. Beyond that, the Constitution forbids the government from central planning America’s economy or America’s healthcare.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.