Tax reform will eventually pass. But whether it works is going to be up to us.
The whole reason for cutting the corporate tax rate is so companies can finally give the people who packed those Trump rallies the raise they’ve been waiting for.
And while I know the free market is supposed to make your boss spontaneously want to increase your pay, it would probably be prudent to have a Plan B.
So here’s Plan B: Once this passes, we need to march into the front office, politely explain the theory behind the tax cut, and conclude by saying, “I’m ready for my raise.”
But Dave, you say, how much should we ask for? Well, President Trump has some advice.
“My council of economic advisers’ estimate says this change, along with a lower tax rate, would likely give the typical American household a $4,000 dollar pay raise.”
So based on that I would ask for $8,000. Because the boss will counter with zero, and you can compromise on $4,000.
If that doesn’t work, that’s when you poke your head out the door, give the signal, and all your co-workers march in wearing red hats chanting “Raise That Pay!”
And if the boss says, “OK, I’ll just hire some cheap foreign workers,” you all quit. Because you know that the Wall is coming, and boy will he be sorry then.
The alternative plan would be to buy up a lot of corporate stock and collect the dividends, which from everything I read is where that money is really going to go anyway.