Tax Reform is Already Working

The ink is barely dry on the president’s signature on the tax reform bill, and already positive results are being reported. One of the arguments of economists like my former colleague Kevin Hassett (now chair of the President’s Council of Economic Advisers) is that reducing the corporate tax rate would benefit workers wages. It has started to have this effect—today:

AT&T, Comcast giving $1,000 bonuses to hundreds of thousands of workers after tax bill

AT&T said in a press release Wednesday that it would give more than 200,000 of its U.S. workers who are union members a special bonus of $1,000. The company also increased its capital expenditures budget by $1 billion in the U.S. . .

Later in the afternoon, cable and media company Comcast NBCUniversal made a similar move: it announced it would give special $1,000 bonuses “[b]ased on the passage of tax reform and the FCC’s action on broadband.” Those bonuses would apply to more than 100,000 employees that are eligible and not in executive roles.

The company also made a big spending commitment to bolster its broadband plants, television and film production, and theme parks, pledging an outlay of at least $50 billion over the next five years.

Boeing, Wells Fargo, and Fifth Third Bancorp also announced major spending and investment plans on account of the tax bill.

I think this is what Trump calls winning. And Democrats are going to look foolish with their doom and gloom rhetoric and unanimous opposition.

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