Because of tax cuts, Disney recently announced a $1,000 bonus for more than 125,000 employees. The company also plans to invest $50 million into a new employee education program.
And Disney’s not alone. To date, more than 200 U.S. employers have announced pay hikes, 401(k) increases, and bonuses because of the Tax Cuts and Jobs Act. Over 2 million working Americans are reaping the benefits.
It’s not only a massive win for President Trump and Congress, but also free-market economic theory. For years, conservatives have argued that a lower tax burden empowers employers by allowing them to keep more of their hard-earned money and distribute it as they deem fit. Employees and job seekers ultimately benefit because job creators, when they see tax savings, invest in new hiring, wage increases and other payouts.
As Disney recently proved, it’s not just a theory. Tax cuts work in practice.
Reemelin Chair in Economics