Dan Celia: Top 5 Effects of Tax Reform
With Companies Already Giving Out Bonuses, Raising Wages and Investing in Infrastructure, Americans Will Feel Positive Effects of Bill Passage Right Away
PHILADELPHIA, Pa.—Soon after the historic passage of The Tax Cuts and Jobs Act—the largest overhaul in a generation—nationally syndicated host and biblical stewardship authority Dan Celia said the tax cuts were the greatest Christmas gift Congress and President Donald Trump could give to Americans.
Now, with the new year just around the corner, what can American families and American business owners expect from the new measures? Celia has been saying for months on his radio and television program and in Townhall.com, where he serves as a featured columnist, that tax reform will have positive effects on all Americans.
“Even though Americans won’t see the effects on their tax returns until next year, the results will be felt immediately,” Celia said. “And even before it was passed, we had seen positive influences solely based on the possibility of tax reform, such as numerous Dow records, higher consumer confidence and a strong holiday shopping season. In the coming months, aspects of the bill will have a real and tangible impact on Americans’ bank accounts, such as a higher standard deduction, higher child tax credits, lower tax brackets and the pullback of the penalties if Americans don’t purchase health insurance they may not want or need.
“This tax plan is not the end but the beginning of an economic revitalization,” he added, “with opportunity for an industrial revolution the likes of which the country has not seen since the ’50s and ’60s.”
Celia said the top five results that can be expected from the tax bill passage include the following:
- Corporations will share the wealth. This is already happening in a big way, Celia said. For example, immediately after the passage of the bill, several large companies made announcements about real-time benefits to their employees. According to CNN Money, AT&T said it would give 200,000 employees a $1,000 bonus, and the CEO thanked Congress and the president for taking a “monumental step” that will “create good-paying jobs.” Likewise, Boeing said it will spend $300 million on workers, split among worker training, upgrading facilities and a program that matches employees’ charitable contributions. Boeing CEO Dennis Muilenburg also praised the tax bill as “a critical driver of business, economic growth and innovation for the United States and for Boeing.” Comcast also announced it would give out special $1,000 holiday bonuses to more than 100,000 “frontline and non-executive” employees. The telecom firm added that it would “spend well in excess of $50 billion over the next five years investing in infrastructure.” Two Comcast company spokesmen confirmed the moves were tied to tax reform. Both Fifth Third Bancorp and Wells Fargo said they would raise the company-wide hourly minimum wage to $15. Fifth Third tacked on $1,000 bonuses for about 13,500 of its workers, and Wells Fargo said the bank would increase its charitable giving by about 40 percent to $400 million. With these heavy-hitters setting the example, other corporations are sure to follow the trend, Celia said.
- Companies both large and small will make plans right away to hire more people and raise wages. Celia said this was a major expectation of tax reform, giving companies the confidence to grow their businesses, which in turn, will benefit Americans.
- Americans will see bumps in their paychecks as early as February. According to a Trump tweet, the IRS confirmed that many Americans should start to see more money in their pockets in just two short months. Celia said the false narrative that middle-class, working Americans won’t experience tax cuts as a result of the reform just isn’t true.
- The markets will see a bump as well. Once 2018 officially begins, Celia said, the markets will begin to climb based on the positive energy from corporations and their plans for growth, as well as Americans’ confidence for the future and their increased saving and spending ability.
- Employee morale will go through the roof. Think employees at AT&T, Boeing, Comcast, Fifth Third and Wells Fargo are happy? It’s just the tip of the iceberg for 2018, Celia said, when companies begin to reap the benefits of tax reform and pass on the good tidings to their workers.
Celia leads Financial Issues Stewardship Ministries (FISM, www.financialissues.org) and focuses on important economic news and biblical investing during his daily, three-hour show, “Financial Issues,” which airs on about 640 radio stations around the country and is also seen nationwide on NRBTV, reaching 45 million households.
Read more about Celia, FISM and “Financial Issues” here. Visit the Financial Issues Stewardship Ministries web site at www.financialissues.org, its Facebook page, on YouTube at Financial Issues with Dan Celia or on Twitter @financialissues. Download the new Financial Issues app here.