ALL OVER America, it seems, giant companies are passing out benefits, crediting the newly enacted tax law for enabling their largesse. Fiat Chrysler offered 60,000 hourly workers $2,000 bonuses and announced plans to move some production from Mexico to Michigan. Several utilities have plans to pass on their tax savings in the form of lower rates for electricity. It’s unlikely that the announcements of wage hikes, or one-shot bonuses, represent anything more than a public-relations consequence of the tax bill. Still, the core provision of the tax bill — a sharp decrease in the top corporate tax rate, from 35 percent to 21 percent — could indeed help solve the stubbornly slow growth in wages that continues to plague the U.S. economy long after the Great Recession.

Source: Washington Post January 13, 2018 17:59 UTC