Tax Reform Continues to Provide Positive Results for Nebraskans and Employers
OMAHA, NE- Across America, over four million workers have received more than $4 billion in bonuses and 90 percent of Americans are seeing a boost in their paychecks thanks to the Tax Cuts and Jobs Act passed and enacted at the end of 2017. Congressman Don Bacon (NE-02) has been hearing about the benefits from across the country and right here at home.
Large corporations such as Dollar Tree and Costco announced they will pass along the benefits of tax reform to employees in the form of higher compensation. Dollar Tree will also be giving employees more work hours and will offer paid maternity leave. Other companies like Home Depot are rewarding their employees with bonuses, and American Express will increase the contributions to employee profit-sharing plans.
But, large corporations aren’t the only ones sharing the benefits of tax reform with employees.
“Smaller corporations such as Omaha Track have reached out to let us know that they too are sharing the benefits of the Tax Cuts and Jobs Act with employees,” said Rep. Don Bacon. “The 200 employees of Omaha Track will each receive an extra bonus of $500 as a result of the tax reform. That’s not crumbs to hard working middle class families.”
The extra bonus is in addition to the semi-annual bonus Omaha Track employees receive in March. The tax reform includes 100% expensing of new equipment purchases and lower overall tax rate on corporations, which will also enable Omaha Track to double their planned Capital Budget for new equipment purchases in 2018, and their planned new hiring from around 15 new employees to 60 new positions.
Omaha Track will also benefit from the new tax rate for larger “C” Corporations, because their main clients and customers are larger railroads and their suppliers, who are expected to increase their capital budgets as they have more cash to put to work building their rail and service networks.
Employees are also seeing a boost in their take-home pay.
“I hear about people receiving anywhere between $20 and $200 extra per paycheck. Some of them are saving that money for emergency funds, vacations, or child education funds,” said Rep. Bacon. “I’ve heard from others that this was the extra amount needed to pay off credit card debt quicker or add to a retirement fund.”
The benefits of tax reform continue to add up.