Some Democrats have complained that the GOP’s recently passed tax overhaul is the worst bill to ever come out of the House and that it will benefit only the rich.
Nancy Pelosi went so far as to even call the bill “theft.”
Moments after the bill was announced, however, many corporations promised bonuses, pay hikes, or an increase in investments after the bill was passed. Not exactly the highway robbery or the doomsday scenario many politicos had predicted.Below is a list of companies that will pass on the benefits of the tax cuts to the “little guy”:
Comcast announced Wednesday that it will be investing over $50 billion in infrastructure over the next five years as a result of the tax bill. Moreover, the company is giving $1,000 bonuses to more than 100,000 employees.
The telecomm company announced in a company email that it would be paying a $1,000 bonus to more than 200,000 employees. If the bill is signed by the president before Christmas, employees will receive a holiday bonus. They are also committed to investing $1 billion in the U.S. come 2018.
Promised a $300 million “employee related” and charitable investment as a result of the tax reform bill.
4. Fifth Third Bancorp
The banking corporation will raise its minimum hourly wage to $15 an hour and give $1,000 bonuses to 13,500 employees as a result of the bill’s passage.5. Wells Fargo
Wells Fargo, the third largest bank in the U.S., announced “investments in team members, communities, small businesses and homeownership” once tax reform is signed into law.
It also announced an increase in hourly pay rates to $15, $400 million in donations to “community and nonprofit organizations” in the coming year, and tens of millions of dollars to fund their “NeighborhoodLIFT” program focused on providing “sustainable homeownership and neighborhood revitalization.”
6. CVS Health
CVS announced it would add 3,000 new, permanent jobs in October, if corporate tax rates were reduced.
CEO David Denton was optimistic about what tax relief can do for his business moving forward.
Kroger CEO Rodney McMullen made a vague pledge in November to add jobs if tax reform is passed:
Costco CEO Richard Galanti made a vague promise to help his employees if tax cuts are passed, saying the company will “do what we do well taking care of our employees and ultimately taking care of our shareholders.”9. Turning Point USA
The president and founder of the youth organization that promotes fiscal responsibility, limited government, and free markets announced a $300 year-end bonus for his full-time employees as a result of the GOP tax reform.
On Tuesday, the Republican tax reform bill was voted on and passed on the House of Representatives floor in a 227-203 vote. The bill will move to the Senate, where it is expected to pass as well later on in the day.
Watch the moment Speaker of the House Paul Ryan R-WI made the announcement and everyone on the floor reacted.
But not everyone was excited about the bill. To no one’s surprise House Minority Leader Nancy Pelosi D-CA went into full meltdown mode on Tuesday during a press conference.
Maybe someone should give Pelosi a history lesson, because I can remember quite a few bills that were much worse.
The Fugitive Slave Act was passed in 1850. The act said that any slaves who escaped had to be returned upon capture to their masters and that officials and citizens of all states had to comply. Seems a bit worse than lowering our taxes, Nancy.
Earlier this month, Pelosi made an equally ridiculous statement, saying that the GOP tax bill was “Armageddon” and that it was the “end of the world.”
The President’s Council of Economic Advisers claims that slashing the corporate tax rate to 20 percent would boost the average American’s wages by $4,000 per year very conservatively and perhaps by as much as $9,000. If true, that would be a remarkable gain for working Americans.Unfortunately, it’s extraordinarily unlikely to be true.
The two of us can think of dozens of objections to the CEA claim, presented in an official report, but perhaps the place to start is with the United Kingdom, which has already run this experiment. Over the past decade, the United Kingdom has slashed its corporate tax rate, in several steps, from 30 percent down to 19 percent. At the same time, the United States has kept its corporate tax rate constant at 35 percent. Like the United States, Britain has a large open economy, investors in British firms come from all over the world, and Britain provides a sound legal and regulatory environment.
So what happened to wages after Britain cut corporate taxes. The following chart tells the story. As UK corporate tax rates fell, so did real inflation adjusted median wages. That is, wages moved in the opposite direction from that predicted by the CEA. Meanwhile, in the United States, real median wages crept up not quickly enough, but at least moving in the right direction. Even if you start the clock in 2013, after the Great Recession, UK wage growth didn’t keep pace with that of the United States.