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Last Sunday I talked about why it’s actually a good thing for the economy if businesses use their tax savings for stock buybacks, because it puts more capital in the hands of investors who will likely find productive uses for the cash. This was a partial rebutall to the bluster from Democrats like Elizabeth Warren that businesses would do nothing to “help workers” with the tax cut.
Anything you do to funnel more money into the productive sector of the economy helps workers, because it helps everyone.
Companies - Tax - Savings - Employees - Walmart
But it is also true that many companies are sharing their tax savings directly with employees. The latest to do so is Walmart, which announced this past week that it’s going to raise its company minimum wage from $9 to $11.
Consider the impact of that: If you earn the minimum at Walmart and you work just 25 hours a week, the tax cut just put another $50 a week in your pocket. Not bad. And that comes out to $2,600 a year. So much for the claim that the tax cut doesn’t do anything to help the middle class. It’s working exactly as we thought it would. Corporations are channeling the capital in ways that help them with their own bottom lines, and often that means paying their own employees higher wages.
Left - Walmart - PR - Stunt - Something
Now, some of the left will claim Walmart is only doing this as a PR stunt. Let me tell you something. That’s an awfully expensive PR stunt. If it’s not in the interest of your business to raise wages, you just increased your labor costs expontentially in the hope of getting a...
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