Good afternoon,
So far, I have not seen any additional stories on companies sharing the benefits of the tax cuts.
Earlier this week Americans for Tax Reform asked for the stories after listing several First State companies that had previously announced bonuses or other moves.
The group has been touting the benefits of the corporate tax cut amid skepticism in some quarters. Clearly, the cuts have kept the party going, but will higher interest lead to closing time?
Wall Street took a hit this week, but it would take a long-running bear market to erase the long period of gains and signs of a rally popped up this morning,
The jury is still out on where the tax savings went. Some believe it went to stock buybacks that help investors but don’t directly make their way to the office or factory floor.
This week we did learn that Walgreens, a big employer in Delaware after the purchase of Happy Harry’s several years ago, announced it will using the tax savings to improve pay. It remains unclear on whether pay boosts at retailers are the result of tax cuts or a tight labor supply.
Many of the state’s. largest employers have been silent on the issue, although JPMorgan Chase did announce an expansion after the passage of the tax bill. The ramp up includes new branch offices in the Delaware Valley.
We do know that regulated utility companies will pass the savings along to customers. Delmarva Power did not oppose the Delaware Public Service Commission’s demand to pass along the lower tax rate.
The tax bill also came with some changes in tax treatment of various benefits.
One reader took note of the change in the taxability of parking fees and its effect on nonprofits. Organizations had offered the benefit to attract top employees to make up for pay scales that are lower than in the private sector.
Enjoy your weekend. It looks like fall is finally arriving. – Doug Rainey,
