More bad news about the Trump tax cuts!
Data from the Bureau of Labor Statistics’ Employer Costs for Employee Compensation gives us a new chance to look at private sector workers’ nonproduction bonuses in 2018 and March 2019 to gauge the impact of the GOP’s Tax Cuts and Jobs Act of 2017. The bottom line is that bonuses in the most recent quarter, March 2019, remained very low at $0.72 per hour (in $2018), the same as in December 2018 and far below their $0.88 level in 2017 or the $0.90 level in 2018.
This is not what the tax cutters promised, or bragged about soon after the tax bill passed. They claimed that their bill would raise the wages of rank-and-file workers, with congressional Republicans and members of the Trump administration promising raises of many thousands of dollars within ten years. The Trump administration’s chair of the Council of Economic Advisers argued last April that we were already seeing the positive wage impact of the tax cuts:
Following the bill’s passage, a number of corporations made conveniently-timed announcements that their workers would be getting raises or bonuses (some of which were in the works well before the tax cuts passed). But as EPI analysis has shown there are many reasons to be skeptical of the claim that the TCJA, particularly its corporate tax cuts, would produce significant wage gains.