The GOP tax reform bill is going to be shot in the arm for our economy. Along with the deregulation of rule affecting our economy it will propel the stock market to more highs in 2018. Perceptions along with sound policy decisions are what motivates the markets. These are the reason why the stock market is up by 25% this year.
The GOP claims the bill will mean a $2,059 tax cut for a family of four earning the median family income of $73,000 which will be a great help to the middle class.
Then you have the following corporation coming out with bonuses and pay raises directly linked to the tax reform.
AT&T said Wednesday it will pay a $1,000 bonus to more than 200,000 US employees after the GOP tax bill is enacted.
“Once tax reform is signed into law, AT&T plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T US employees — all union-represented, non-management and front-line managers,” a company press release said. “If the president signs the bill before Christmas, employees will receive the bonus over the holidays.”
At a White House event on Wednesday afternoon, President Donald Trump called AT&T’s plan “pretty good.”
Boeing released a statement announcing “immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law.”
“$100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing’s focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
“$100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
“$100 million for “workplace of the future” facilities and infrastructure enhancements for Boeing employees.
Boeing CEO Dennis Muilenburg said:
“For Boeing, the reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth.”
Fifth Third Bancorp said it would raise its minimum hourly wage for all employees to $15, with 3,000 hourly employees benefiting from the hike. The bank also said it would distribute a one-time bonus of $1,000 to about 75% of its employees.
“We want to invest in our most important asset – our people,” said Fifth Third President and CEO Greg Carmichael. “Our employees drive our reputation, our business and our success.”
“Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth. Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce
Wells Fargo said it would raise its hourly minimum wage 11% to $15 from $13.50. Additionally, the bank plans to donate $400 million to community and nonprofit organizations in 2018 and will target 2% of its after-tax profits for corporate philanthropy beginning in 2019.
“We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners,” said President and CEO Tim Sloan in a company release.
“We look forward to identifying additional opportunities for Wells Fargo to invest, as we continue to execute our business strategies and provide long-term value to all our stakeholders. As the nation’s largest small business lender and residential mortgage provider, we understand our significant role in helping grow the economy.”
Brian Roberts, CEO of Comcast NBC Universal, said the company would award $1,000 special bonuses to more than 100,000 eligible frontline and non-executive employees following tax reform and the repeal of net neutrality.
Roberts also pledged to spend $50 billion over the next five years investing in infrastructure, saying that the investments would “add thousands of new direct and indirect jobs.”
Bank of America will pay employees making up to $150,000 a year a special one-time bonus of $1,000, the Wall Street Journal reports, citing an internal memo from CEO Brian Moynihan.
Sinclair Broadcast Group announced in a Friday press release that it will award almost 9,000 employees a special $1,000 bonus.
“We are grateful to our President and legislature for passing the landmark Tax Cuts and
Jobs Act and are excited about the benefits it will provide for our country’s economy, our
Company, and our employees,” Sinclair President and CEO Chris Ripley said in a statement “We recognize that our employees are our most valuable resource, truly appreciate their combined achievements for our Company and look forward to a very bright future.
Texas Capital Bank on Friday announced it will give a majority of its employees a special $1,000 bonus following the passage of the GOP tax overhaul.
“This investment in our people is a thank you for their hard work and dedication,” CEO Keith Cargill said in a statement. “Our clients have come to expect the very best service and in order for us to deliver the highest quality consistently, every link in our chain must be strong. This bonus reaffirms the respect we have for the important role each of our colleagues play in delivering world class service to our clients.”
Government can set the tone for the economy but it is the free market that runs the economy. I want the economy to be run by the free market not the government. The free market is what has made this country great.
Most economists forecast a lack luster economy for 2017. In June of 2016 Janet Yellen and the Fed finally acknowledged that sluggish growth is the long term new normal for America. Secular stagnation is here to stay, a case study of a flawed perception dictating reality. The growth rate has limped out of the 2008-09 recession at a 2 percent pace now for seven years. Weak consumer spending is the reason for the anemic growth, which has become routine for the US economy since the Great Recession ended in 2009.
Let’s look at Quarterly numbers for GDP (Gross domestic product) for this year 2017 the first year of the Trump Administration. Trump’s goal is to have 3% growth for the economy. The first quarter growth for 2017 was .07%, January-March. This being the first Quarter of the Trump presidency I do not hold him responsible for the dismal number. The second quarter GDP was 3% from April-June. The third quarter GDP was 3.3% July-September. The Dow DJIA, has advanced 28.50% since Nov. 8, 2016.
These numbers support the premise that lowering unneeded regulation and passing Tax reform will energize the economy and make it possible for 3% growth or better. Raising take home pay with lower taxes and pay increases will boost the economy. These are sound economic policies.
The president and the congress have set the tone for our government and the economy. The GOP tax reform has lowered taxes on most Americans and U.S. corporate helping to create a prosperous 2018