Is tax reform working? It depends who you ask. House Minority Leader Nancy Pelosi thinks $1,000 bonuses from local businesses are mere “crumbs.” Most working-class Californians would beg to differ. A $1,000 bonus is a meaningful difference to folks living on tight budgets.
These bonuses are just the tip of the iceberg. By lowering the corporate tax rate from 35 percent to 21 percent, businesses can now expand plants, buy equipment and hire more workers. Apple, for example, decided to accelerate its planned $350 billion investment in the United States, which will create 20,000 jobs.
Tax reform also allows companies to repatriate foreign cash at a one-time rate of 15.5 percent. James Zhan, director of the United Nations Conference on Trade and Development, says U.S. “multinationals could bring back up to $2 trillion.”
Some Republican lawmakers in California opposed the bill because it scaled back the state and local tax deduction, which benefits some wealthy families. Fortunately, Rep. Jeff Denham stood up to the critics and voted in favor of tax reform. Workers throughout the Central Valley can thank him for their raises and bonuses.
Dave Thomas, President, Stanislaus Taxpayers Association, Modesto