Democrats confounded: Immediate benefits flow from tax reform
By Jack Hellner
Yesterday was a glorious day in America because of the tax cuts and tax reform bill. It is going to work much faster and better than almost anyone thought because the corporate cuts were so big and so bold. It is truly going to help the lower and middle classes and lift minorities and others up instead of making more people dependent on government.
Within hours of the tax cut passing:
AT&T is giving its hourly employees (mostly unions) a $1,000 year-end bonus and is boosting capital spending by $1 billion in the U.S. in 2018.
Wells Fargo said it is raising minimum wages to $15 per hour.
Fifth Third Bank is giving year-end bonuses to the 13,500 employees that are not senior executives and is raising the minimum wage to $15 per hour.
Boeing said it is putting an additional $300 billion into charitable and employee-related expenses as a result of the tax changes.
Comcast is giving $1,000 bonuses to 100,000 non-executive employees and is upping capital spending, which will trickle through the economy.
Boy, these corporations are evil.
Every one of these companies is helping its lower- and middle-level employees while Democrats and many left-leaning economists have said specifically that the tax cuts would not trickle down.
Information like this should be shouted on all news networks, but it won’t be, because it just doesn’t fit the agenda. On CBS radio this morning, they tried to brush off tax cut benefits by claiming that some effects may be delayed, depending on the day Trump signs the bill (that is just stupid, as almost everything takes effect in 2018), and people won’t realize the effect of tax reform until April of 2019, when they file their 2018 tax return. That is certainly what the media and Democrats hope, because they don’t want the public to see how much the reforms and cuts help the economy as a whole and the middle class and lower-level employees. The media have managed to hide the truth so far, and they hope to hide the truth past the 2018 elections. Facts haven’t mattered for a long time.
Since the second quarter, the economy has grown faster than 3%. Since Trump took office, consumer confidence has shot up, the stock market has skyrocketed, small business confidence has shot up, and large company executives are extremely optimistic. Yesterday, housing starts were reported at an eleven-year high, and home-builder confidence is up. Instead of highlighting these statistics and the truth about the tax reform bill, the media trash Trump every day and repeat the talking points that the tax reform is for the rich. They have to keep Trump’s poll numbers down. It is inexplicable that over half the people in polls don’t believe they will get tax cuts except for the fact that Democrats, with the help of compliant media, have spewed forth that misinformation.
I have a few simple economic questions for Democrats, Federal Reserve governors, and left-leaning economists:
Is it inflationary and harmful to the economy and jobs for a company to take $100-billion in tax savings and give it to employees in the form of raising their wages or bonuses? The answer is obviously no, because that is just shifting costs.
Does the government lose $100 billion in taxes when the money is used for wages or dividends or to boost stock prices? The answer is obviously no, because the government also collects Social Security and income taxes on the additional wages along with taxes on the dividends and capital gains. States will obviously collect more taxes from this shift from federal income taxes to things they tax. States like California, New York, and New Jersey should be cheering about their additional taxes instead of griping.
Is it inflationary and harmful to the economy and jobs if politicians force up the minimum wage with no offsetting cost cuts? The answer is obviously yes, because in that case, most companies have no other choice but to raise prices or cut jobs to cover the increased overhead.
Journalists along with economists will try to keep the benefits of the tax cuts and tax reform secret from the public past the 2018 election, but there will be many more stories like AT&T, Boeing, Fifth Third, Wells Fargo, and Comcast that will make the benefits hard to hide.
Thank goodness that we have a president and a Republican Party (that finally held together) that understand that it is the private sector and capitalism that have made the U.S. the strongest country by far in 240 short years and not government.
TLB published this commentary from American Thinker with our thanks for making it available.
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