U.S. Tax Savings Lifting Wages
Along with the long-awaited corporate tax cuts, a dozen of corporations laid out concrete plans on worker wages, including Walmart, which has announced to increase their minimum wage to $11 an hour. However, these big-corp actions may only represent a fraction of the U.S. employment.
Some economists doubt that the wealth effect of the new initiative is unable to be transformed into real income gains for employees working in SMEs. Survey also shows that the number of employers offering discretionary payment, e.g. one-time bonus, outnumber those boosting base pay, implying a cautionary outlook for longer-term business prospects amid uncertainties.