With the new year settling in, we are also settling into the new tax plan passed late last year, and with it, seeing increased economic confidence and growth. In fact, just yesterday I saw that Wal-Mart, of all businesses, increased the minimum wage for their employees by a significant amount. They are not alone either. Much of middle-class America saw bonuses at the end of last year that would not have been possible with the new tax plan, and as 2018 kicks off, many of those same working-class Americans are seeing a boost in their paychecks. Specifically, more than 2.6 million employees are already due to increased benefits and extra pay.
On top of this good news, comes the news of more than $1.6 billion in new investments being made in the U.S just after the tax reform was signed into law. This is all due in part to the decreased corporate tax rate that was usually high prior to this tax reform.
With one of the main goals of the tax reform being a more stable and confident economy, it is obvious that the reduced tax rate is already making waves of positive change throughout the country. Businesses are finally able to invest in their employees as well as the long-term growth of their business. Previously, this was only a wish for many business owners.
The GOP received endless amounts of negative harassment with the proposal, with many on the left claiming this to be some type of financially fantasy, with one Gem going as far as to claim Armageddon was just around the corner. Seeing an American middle-class family get an extra $1000 at the end of the year or a minimum wage employee seeing a few more dollars an hour is quite the opposite of any Armageddon we have ever heard of.
Finally, true to the promise president Donald Trump made while campaigning, the tax cut for businesses means that more and more companies will now opt to stay here in the U.S rather than relocating internationally.
With many of us just starting to see the benefits of the tax reform, it is safe to say that the best is yet to come. As almost all Americans and businesses see more money staying in their pocket this year, it is safe to assume that spending will be up in all sectors, giving way to furthered business growth, continued stabilization of the housing market and more time with your family on the beach than any other year.
Tax reform is incredible, if done right, just as the GOP did this time around – Improving the lives of those in this county who need it most.