Since Congress passed and President Trump signed into law the Tax Cuts and Jobs Act last year, the good news for working people and families just keeps rolling in. Not only are middle-class households getting a tax cut (which they are already seeing in their paychecks), many are also getting raises, bonuses, and increased benefits from their employers.
Take, for example, the Georgia-based electrical wire producer Southwire. The Atlanta Business Chronicle reported in March that the company “will pay out $9 million in bonuses and benefits to employees thanks to tax reform.” The article details what this means to Southwire’s nearly 7,500 workers: “full-time employees in the United States, not including executives and upper management, will each receive a $1,000 bonus…Part-time employees will get $250 bonuses.”
The company also said it will “expand its parental leave policy” and “offer a bridge scholarship program for eligible hourly employees seeking to further their education through a two-year degree, four-year degree or technical certification.” This means real money and real benefits for hardworking individuals and families—keep this in mind the next time you hear someone claim the tax reform law only benefits the wealthy and Big Business.
Another great example is a household name: the spice and flavorings firm McCormick & Co. Inc. According to the Baltimore Sun, the Maryland-based company said in March it would share some of the money it saves from tax reform “with eligible hourly employees in the form of $1,000 one-time bonuses in May,” as well as accelerating “hourly wage increases.”
The Baltimore Sun also reported in February that another Maryland-based company—developer St. John Properties Inc.—”will give each of its 180 employees a one-time cash bonus of $1,500 in response to the Republican tax overhaul passed in December.” The company said its decision was made “after reviewing expected advantages of the Tax Cuts and Jobs Act.”
In the tax reform fight last year, companies of all sizes said that they would pass along the benefits of corporate tax reform to their employees and customers—and naysayers claimed it wouldn’t happen. Now that tax reform is in place, it seems like a week doesn’t go by without hearing about another company giving bonuses, raises, or better benefits, or expanding facilities or cutting costs for their customers. Companies are doing what they said the would.
The Tax Cuts and Jobs Act is a pretty accurately named piece of legislation. But it would be even more accurate—if not making for a best acronym—if it was called the Tax Cuts, Jobs, Wage and Salary Increase, Bonuses, Better Benefits, Expand Facilities, and Give Back to Customers Act (TCJWSIBBBEFGBCA). Because that’s what it really is.