Two Million People (and counting) Receiving Tax Reform Bonuses

And it worked obviously on a few wavering low information types dismayed by a year of #MAGA failure.

 

The question is, whether it will be worth it in the long term to add to the debt while cutting spending on social services that lower and middle class folks use. No one thinks these tax cuts are going to pay for themselves.

What a bunch of nonsense you had to just make up. You merely aren't listening to what people are saying and having to be dishonest.

 

Also 2 million people isn't a lot of American workers when you look at the total workforce. You can't declare that 2 million received a bonus due to the tax cut as many of these folks would have received it anyways.

 

For a public company the bonuses are a way to keep their growth predictable. Public companies got an unexpected windfall and by giving bonuses this year they keep their profits in line with investor expectations, and can show growth next year by giving a smaller bonus next or no bonus at all. I used to work for a fortune 50 company and they would delay big bookings on purpose so they could even out the income graph. Steady growth is really important to the stock price.

 

50 weeks. Which is one year. That $1k end of a year bonus is basically a 50 cent raise...but it's not since it's not carried forward. It's a lot more palatable to dish out $1,000 per employee than to actually give them a raise which commits them to giving $1k extra every year. And $1k seems like a lot more money psychologically than a 50 cent raise even though it is the exact same thing. Of course, if companies announced that hey, we're giving everyone an extra 50 cent for all their hard work this past year, people wouldn't be as satisfied.

It's a one time piece of scrap meat to throw to the dogs to keep them placated while they get the feast on expensive steaks. This is about making Trump look good so there isn't a public backlash against the tax reform and make it difficult politically to reverse it. It's nothing more than a lobbying investment.

First of all only about half of companies offer a 401K plan. Secondly only employees who make a decent salary usually can put into their 401K. And if you are happy about a $1k bonus then you probably aren't putting in very much into your 401K. But let's say you make $50K a year and put in 4% into your 401K. That means of your $1K bonus you will put in $40 bucks and a 10% match means the company will put in $4.

So you are talking about an extra $4 here. But then you say there aren't taking employee contributions from the bonus, so that means it will actually be $0 since there would be no match.

The fact is that this "bonus" represents 5 cents on the dollar of what they are saving on taxes. They are taking 95% of the savings and doling out 5% in these token rewards. As a shareholder - this tax cut will net me a lot of money - I've already seen my investments increase 20% this year. That's wonderful for me. But it sucks for the American worker. I feel bad at transfer of wealth from people like them to people like me. Good for me, but it's definitely not fair.

 

I can understand and agree with raising the debt to pull oneself out of a severe economic crisis, the likes of which haven't been seen since the Great Depression.

Different situations require different solutions, no?

 

It sounds like they already explained it.

 

Yeah he seems to be pretty unstable.

 

nobody here hates Capitalism....$#it hits the fan when too much greed gets involved....of course we want companies to make money, my problem is them not sharing that wealth with all of their employees fairly....they like to give out crumbs (1k bonus LOL)....there is no reason why any CEO/upper management of any corporation should be making more than X(insert your favorite factor here) times their employees or receiving these crazy ridiculous bonuses/stock options...you're happy with a 1k bonus?? LOL, go take a look at your CEO's...tell me that's fair...if you're ok with that, then good for you...i know i'm not, I'd rather have a strong middle class with increasing purchasing power than a select bunch of rich guys that want to "trickle down" the moneyz...

kind of like the tax cuts, sure we get a tax cut (crumbs), but its only for a few years AND WHEN COMPARED to the Corporate Tax Cut (35% to 21% LOL), when they don't even need it (they have so much cash), at the future expense of American social safety nets that help the middle and lower class?....damn right I have a problem, some of these fools already have too much money, GREED

 

This is about the only post in this thread that is even remotely accurate.

The conspiracy theories are astonishing.

 

By this logic, why do we not double taxes so we have no debt?

The answer is simple. The government acts irresponsible just like the individual who is always in debt their whole life. If we raise taxes, our government will waste more. If we cut taxes, they will waste less.

 

Only a total rube would make this kind of a post.

Analysis of tax policy is complicated. But there us literally no disagreement about the rape and plunder of the tax bill of the workers by the non workers. That is a feature not a bug.

You can cast your lot with the PR flacks at southwest airlines, and be happy with your crumbs - obviously nothing is going to change your mind.

I can tell that if all I get out of this is a 1000 dollar bonus - that is, let me be kind, not exactly going to support my lifestyle in the way it seems to support yours.

 

I don't disbelieve the list. I don't think it's relevant. The cash is relevant and I'm sure every worker who gets it will be happy for the cash. But, it is not accurate to say that these bonuses are a result of tax policy. Companies pay their employees in accordance to their employees' bargaining strength relative to the companies. If they can't get the employees they want at the salary they offer, they offer more. If they can get the same employees for less, they'll pay less. If the company gets a windfall profit, such as from a tax reduction, they give it to the shareholders, not the employees. The employees didn't get a stronger bargaining position just because the company's taxes were reduced. The profits belong to the shareholders. The shareholders, on the recommendation of the CEO they have running the company and with the approval of the Board of Directors they elected, chose to give some of their windfall profit to the employees. Why would a shareholder want to do that, when the whole point of owning shares in the company is to maximize the returns on his investment? Because he wants this new tax policy that gave him a lot more money to be well-liked by voters and not to be retracted should Democrats ever regain control. So what are these bonuses really? This is a goodwill payment to buy your vote. For the shareholder, it's a good investment. Pay $50 million one time to get $100 million each and every year; that's a no-brainer. This is not the inexorable result of good tax policy; it's a pay-off to blind voters to the reality long enough for the next tax environment to be normal.

You like being bought?

Times are coming very soon where our deficits will get much worse. They'll say you need to give the new growth more time to come to fruition in this new tax environment. When that line gets tired, they'll say we spend too much money on entitlements. We gotta spend less. Oh those mega-rich 1 percenters who got mega-richer starting in 2018? Well, they pay their taxes according to the law, so what's your problem? You'll just have to go with less, drive on more toll roads, send your kids to private schools if you don't like how the public schools do it. Those 1 percenters after all "earned" their money.

 

You work in the airlines and your moniker is crash?

 

As I always say, when the good ol’ USA gets driven into the ground, the good ol’ 1% will pack their bags and move to greener pastures.