Kitchen Table Economics

Do Tax Cuts Work? Over Two Million Americans Are Proof

If there is still any question to whether the Tax Cuts and Jobs Act will benefit Americans, that doubt has long vanished. Over two million employees have already received some form of a bonus or pay increase since the passage of the tax relief package.

Americans for Tax Reform has compiled a list of the over one hundred businesses—big and small—who have raised employee wages, distributed bonuses, increased retirement contributions, or have even expanded their operations because of the tax cuts. Some businesses are even restructuring health insurance plans, with hopes to reduce some of the financial burden levied onto their employees.

Some specific examples include:

1.)    BB&T Bank distributed $1,200 bonuses to their 27,000 employees and increased the starting hourly wage from $12 to $15.

2.)    Nationwide Insurance gave 29,000 employees a $1,000 bonus and increased their 401(k) matching contributions for 33,000 employees.

3.)    Walmart raised its starting hourly rate to $11, expanded maternity and parental leave benefits, and provided a $1,000 cash bonus for eligible employees.

Tax cuts are continuing to be a proven method of bringing prosperity to Main Streets across the country. It will be exciting to watch the full effects of the tax cuts unfold over the course of 2018.