Beyond the Rhetoric
Harry C. Alford Republican tax reform: An instant success | 1/11/2018, midnight
Finally, our Congress was able to move a significant form of law. It took a great while with immense controversy and debate. Congress, or should I say the Republican portion of Congress, passed the long overdue tax reform. It is incredible that not one Democrat voted for the legislation. Apparently, the Dems have become out of touch with mainstream America. Who doesn’t want a tax decrease? Unbelievably, the Democratic members of Capitol Hill refused to support such an attractive peace of legislation. What happened after it was passed and signed by President Trump? It was like the economical gates of “Heaven” opening to the joy of all Americans.
It has only been a little more than a couple of weeks, but things have so quickly changed for the better of most Americans. The effect on our economy has already been enormous. The New York Stock Exchange has soared to record heights – beyond 25,000 in value for the Dow Jones portion. This will positively affect our overall wealth including retirement funds such as the 401(k) retirement programs.
The Fortune 500 corporations jump with vigor and great enthusiasm. They see their profits soaring; their wealth building and the futures becoming brighter. The leadership of the corporations quickly decided to spread the new wealth to its loyal employees. Here are a few of the improvements:
AT&T has announced $1,000 bonuses to 200,000 employees which is a billion dollar increase in capital expenditures. According to CEO Randall Stephenson, “Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world. Tax reform will drive economic growth and create good paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Comcast would not be outdone. They announced $1,000 bonuses to 100,000 employees; at least $50 billion investment in infrastructure in next five years. According to their press release, “Based on the passage of tax reform and the FCC’s action on broadband, Brian L. Roberts, Chairman, and CEO of Comcast NBCUniversal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.”
This is just the beginning. More than 100 other major corporations announced bonuses to their employees; new grants via their foundations; infrastructure improvements. Southwest Airlines announced $1,000 bonuses to over 55,000 employees. While American Airlines announced bonuses for their employees, Southwest alerted Boeing to prepare to build them a new fleet of aircraft.
Just about every major bank in the nation has announced bonuses and wage increases for their employees. Many associations will feel this “bump” as corporate foundations will start to increase the amount of donations they annually give. Wage increases are becoming prevalent to just about every bank in the nation.
It is a financial lovefest. As these employees start receiving their bonuses and salary increases, big box stores such as Target, Lowes, etc. will start to feel the rise in consumer activity. Unemployment will certainly begin to decrease while property values will appreciate handsomely.