Coming Back

I can't wait to see how much money I would get after the tax cut. Listening to the news today, the recent bill is being translated into the nuts and bolts of implementation.Some commentators think that the tax cut would result in salary increases or bonuses.

Some companies have already announced that their employees will receive bonuses because of the tax cuts. Now may be the time to legislate a higher minimum wage so the money  goes to the pockets of ordinary folks.

Not much is known about the details since the bill was rushed through Congress. Listening to NPR news, no public hearing or discussions or debate were done about the bill. So one will see what's next when the Congress translates how the bill will work.

If extra money does reach the rank and file, where would it go? Some predict a boom in restaurant spending or purchases in Amazon. But the money maybe best used paying down credit card bills or saving for retirement. But will the bill really translate to an increase in take home pay? Or will the money just end up in company bank accounts. Congress believes the extra money will spur investments, improve competitiveness but history shows that that is not always the case.