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Originally Posted by 8notes
Sound economic principles are based are arithmetic, not feel good platitudes. Most economists are saying the dollars and cents do not add up - for every dollar in cuts, economy activity would have to produce $5 to pay for itself, and that is highly unlikely to occur. The Committee for a Responsible Federal Budget supports tax reform but has observed that tax cuts in 1981 and the early 2000s increased deficits. History does not support this latest attempt.
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The bill should have come with assurances that the tax savings of corporations would truly go toward expansion/wage hikes...as was promised and predicted.
So far, only a small percentage have given bonuses or raised wages with the vast majority of companies saying that they are looking at increasing cash reserves and/or stock buy-backs.
Which certainly helps those of us who have substantial stock holdings, either individually or through 401K's/Roth's/Etc., but has a fatal flaw...as 50% of Americans do not own any stocks.
Simple common sense dictates that the only reason for a company to hire more workers or pay higher wages, is if unfilled demand is present (which if that were the case, they would do it regardless of whether there are additional incentives)...or that they can't hire the quality of workers they need.
Neither situation actually exists to justify that the vast majority of the tax cut benefits are going to those people/companies...who need it the least.
Only a small slice of corporate America has shared tax savings with workers so far - Jan. 2, 2018
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...only 18 companies in the S&P 500 have responded to the tax overhaul by raising wages, handing out bonuses or improving employee benefits.
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