by Mitch Kokai
Senior Political Analyst, John Locke Foundation
For the first time since the Great Recession, lower-end earners are receiving greater benefits than higher-end workers when it comes to take-home pay, according to a leading banking firm.
Average hourly earnings rose 3.4 percent in February, marking the greatest earnings increase since April 2009, according to the latest Bureau of Labor Statistics (BLS) report. February earnings were the seventh consecutive month during which compensation was three percent or higher. …
… According to Americans for Tax Reform (ATR), at least 800 examples of new hires, pay raises, benefit increases, bonuses, facility expansions, and utility rate reductions were reported immediately after the Trump-supported Tax Cuts and Jobs Act was enacted. The businesses ATR lists argue tax reform was the primary reason for their reported economic growth, ability to make capital improvements and hire additional employees or give them raises.
John Kartch at ATR said that “90 percent of wage earners have higher take-home pay” because of the tax reform bill.
“I’m not surprised by the news. Estimates of the tax reform’s impact varied before and after its passage,” Mike LaFaive at Michigan’s Mackinac Center for Public Policy told Watchdog.org. “My review of those estimates seemed to suggest that the vast majority of American workers could end up being economic winners, either through lower tax bills or through the benefits of higher growth rates.