One catch is that the bonuses are paid out over time, after meeting certain milestones, like completing training or one year of service. And they lock in workers to the location for around three years. If workers leave or are terminated for cause before that, they have to pay back the full amount.
You forgot this context as well
500 out of how many?
Gary Cohn, one of the main architects of Trump’s tax plan, said the corporate tax cuts would “trickle down”.
When you take a corporate tax rate at 35 percent and move it to 20 percent, and you see what’s happened over the last two decades to businesses migrating out of the United States, migrating profits out of the United States, migrating domicile out of the United States, and hiring workers out of the United States, it’s hard for me to not imagine that they’re not going to bring businesses back to the United States.
We create wage inflation, which means the workers get paid more; the workers have more disposable income, the workers spend more. And we see the whole trickle-down through the economy, and that’s good for the economy.
“A rising tide lifts all boats.”
~ John Fitzgerald Kennedy,
(who cut income tax rates
for the rich.)
It was also a favorite slogan of Clinton Treasury Secretary Robert Rubin,
Point being
#1 A policy does not switch from good or bad for America simply because the man proposing it has a D or an R next to his name.
#2 A strong economy IS good for America including the American worker. It is not and never has been an assertion that companies will give away 100% of the corporate tax reductiion as employee bonuses. The assertion is that companies will locate wherever their after tax profits are highest. (They are greedy that way.) Taxing them out of the country is bad for the economy.
That was the last list I saw of companies that issued press releases. That was Mid January. Who knows what the number is now. Who knows what the number will be once the tax year is done and the pointy pencil people have all the numbers broken down.
And on the other side of the coin: People like me seeing an extra $36 of MY money every two weeks. Seeing my Electric bill go down so I can keep more of MY money, My natural gas bill goind down so I can keep more of MY money – both companies did a quick pass through reduction with the public service commission.
Then I got an even bigger surprise. When my car insurance renewal came, They had reduced my rate – a note explained it was because of fewer insurance claims AND changes in tax law.
I hope you ran the new IRS calculator before you go hog wild spending that $36 windfall.
I actually haven’t yet. I did email my CPA and asked him how we should adjust. That was only yesterday.
H had to change his withholding to have $500 more taken out each month and that was sometime in February. The longer one waits to change their witholdings the more that will need to be withheld in ones remaining paycheck.
That $36 will be great with the giant deficit the cuts are predicted to leave.
I’m middle class. My federal income tax will go up 1200 net year because I live in NJ.
All those posts about leaving a giant debt to our children (and it being a national disgrace) are all but forgotten.
Oh, and do you no longer care about the deficit? $36 a week for you, along with huge, huge cuts for corps and the very wealthy is more important that leaving your kids with insane debt to deal with?
Didn’t someone do a study and found that states that normally vote D would be punished under the new tax plan?
Doesn’t Texas lack a sales tax and instead use property taxes? They seem to be at risk of losing out as well.
Yes they will.
No in-depth studt necessary. State incone taxes paid wilk no longer be deductible for federal tax purposes.
Blu states have higher taxes.
I am in NY, and our itemized deductions this year came to approximately what the new standard deduction is because we are 1 income empty nesters (and our property tax is only $8k year as we never moved up to bigger house.) We are considered Upper Middle Class and our taxes went up approx $2500. H’s pay increased $300/month due to tax cut, but if we didn’t change his withholding we would owe $6k next year.
Nope.
But I did figure what my estimated income for the year would be.
The new standard deduction.
The new tax rates
And it’s about right.
Sumptin’ tells me you live in a high tax state 
Maybe you should start pesterin’ your state and local political critters to lower your taxes.
And that’s why I’m a huge proponant of a constitutional amendment for a balanced budget AND tax reform.
One taxpayer per form, one tax deduction per form. No other deductions OR credits agaist taxes owed. Anyone making 80% of Federal Minimum Wage and above would pay the same flat tax.
We’ve got both.
