Employment trends expert discusses the stats
It’s a month since President Trump’s tax reform went into effect. So how have these changes impacted the average American worker?
“One thing for sure is that the market loves it,” says Rob Wilson, President of Employco USA and employment trends expert. “We hit the 26,000 mark for the first-time ever, and it’s also the first time we have ever seen such a fast 1,000 point rise.”
Wilson also points out that companies like Walmart, Disney, Starbucks, Apple and Verizon have already rolled out bonuses, raises and other incentives to their employees. However, some lawmakers don’t see the value of these bonuses, such as House Minority Leader Nancy Pelosi who scoffed at these “crumbs.”
“When you look at someone working at Walmart who is making $10 an hour or $20,000 a year, a $1,000 check is far from peanuts. It’s a 5 to 10 percent bonus,” says Wilson, who also points out that Walmart is increasing their wages from $13.85 to $14.50. “These wages will no doubt be matched by other companies like McDonalds among others as they try to stay desirable in the hiring market.”
The tax law is having other important changes on the economy.
“Apple has more offshore earnings than any other U.S. company, but now, as a direct result of President Trump’s tax reform, they are going to pay repatriation tax payments of approximately $38 billion to bring that money back home. They are also going to spend tens of billions on domestic jobs, manufacturing and data centers in the future,” says Wilson.
Also, starting in 2019, individual people will not be penalized for not having insurance. “The employer mandate for those companies with over 50 full-time employees is still in place, however, this removes the burden from the average American who does not want to be forced into buying costly insurance that they don’t need.”
“The bottom line is the tax plan is working,” says Wilson. “Middle America is directly benefiting from the tax reform, and I expect that unemployment and underemployment numbers will continue to decrease.”
For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.