By mid January, the astounding news about the early effects of the US tax reform count more than 125 corporations announcing plans for substantial bonuses and salary increases to their employees in response to the corporate tax rate cut from 35% to 21%.
In fact, Walmart boosted the minimum wage to $11/hr, and handed out bonuses up to $1,000 for hourly workers. AT&T, Comcast, Wells Fargo are promising substantial bonuses and pay hikes soon. Just these four companies employ a total of more that 500,000 workers, but other large corporations are adding to the good news for their workers, such as Alaska Airlines, American Airlines, Bank of America, BB&T, Disney, FedEx, Fifth Third Bank, Home Depot, Jet Blue, Nationwide, PNC Financial, Sinclair Broadcast, Southwest Airlines, Starbucks, Travelers, U.S. Bancorp, and many other smaller ones.
In addition, some multinational corporations are taking the first steps to relocate their headquarters back in the United States.
Given that these tax cuts will be taken into effect in the 2019 tax declaration, such a positive reaction was not expected so soon. This is a clear sign of economic optimism, fueled by such a low unemployment rate that it can be considered indeed as "full employment", a situation that requires more competitive salaries to be able to employ qualified employees from a shrinking labor market.
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