January 27th, 2018

     ​Trump’s tax cut has created a giant stimulus package for the US economy, only the 2018 stimulus did not cost the federal government a penny.  As a result of the Tax Cuts and Jobs Act of 2017, hundreds of companies around the country are giving their employees bonuses in the amount of $1000.00 to $1500.00. More than 1.3 million U.S. workers are expected to receive bonuses estimated to be worth more than $1.7 billion. These companies are obviously acknowledging the American work ethic and rewarding their dedicated employees.  On the other hand, Obama’s economic stimulus package, known as the American Recovery and Reinvestment Act in February 2009, cost the US taxpayer $840 billion.  The stimulus was a complete failure and the direct impact was a sizable increase in the national debt.  The stimulus bill was supposed to save 900,000-2.3 million jobs. It saved 640,329 jobs. The Trump tax plan will increase tax receipts for the US government because these bonuses will be taxed, but probably at lower rates, because the tax plan cut marginal tax bracket rates. Everyone wins.  The US worker has more money in his or her pocket to spend and the federal government has a net increase on tax receipts which benefits every US taxpayer and citizen.