On Thursday President Trump will be speaking at Dana Incorporated in Warren, Michigan. Michigan residents are raking in the benefits of the Tax Cuts and Jobs Act, signed into law by Trump.
On Dec. 22, 2017 Trump signed the tax cuts into law. Thanks to the Tax Cuts and Jobs Act:
Tax cut: Every income group in every Michigan congressional district saw a tax cut.
Doubled child tax credit: 642,920 Michigan households are benefiting from the TCJA’s doubling of the child tax credit.
Standard deduction: 3,458,820 Michigan households are benefiting from the TCJA’s doubling of the standard deduction.
Obamacare individual mandate tax relief: 132,750 Michigan households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.
Lower utility bills: As a direct result of the TCJA’s corporate rate cut, Michiganders are paying lower utility bills. Lower electric, water, and gas bills help households each month, and also help small businesses operating on slim profit margins. Michigan examples of utilities passing on tax savings to customers include – but are not limited to:
- Michigan Gas Utilities Corp.
- Consumers Energy
- Upper Peninsula Power Company
- Alpena Power Co.
- DTE Energy
- ITC Holdings Corporation
- Northern States Power
- SEMCO Energy Gas Co.
- Upper Michigan Energy Resources Corp.
Thanks to the TCJA’s corporate tax rate cut – from 35 percent to 21 percent – and the TCJA’s 20 percent tax cut for small businesses, employers of all sizes are hiring, expanding, increasing pay and benefits, and paying special tax-cut bonuses:
The Mitten Brewing Company (Grand Rapids, Michigan) — Because of the Tax Cuts and Jobs Act, the Michigan Brewery was able to produce new beer, perform new research, hire new employees, give employees pay raises and bonuses:
“It literally put money back into our pockets that we were spending before. We had been producing a bunch of new beers that we have been able to research and develop, and we’ve retained key employees, by giving them bonuses, raises, bringing in new employees,” said Max Trierweiler, co-owner of The Mitten Brewing Company.” – Oct. 7, 2019 WZZM13 Article
SpartanNash (Grand Rapids, Michigan) – Bonuses and pay increases:
A locally based grocery store chain plans to re-invest half of its savings from federal tax reform into employee compensation and one of its brands.
David Staples, the CEO of Byron Center-based SpartanNash, which is also a food distributor, said in a conference call to investors yesterday the company will issue bonuses, raise wages and invest in employee training in the first quarter of 2018.
SpartanNash spokesperson Meredith Gremel said the company does not plan to disclose the total dollar amount of the bonuses.
The bonus amounts will vary depending on the employee’s position and market, as will the wage increases, Gremel said. She noted those in entry-level roles or just beyond will benefit the most.”— Feb. 23 2018, Grand Rapids Business Journal article excerpts
Penske Automotive Group. (Bloomfield Hills, Michigan) – Increased 401(k) contributions:
Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today that it has enhanced the company’s U.S. 401(k) savings plan by increasing company matching contributions from 1.5% to 2.5% of eligible contributions, representing an increase of 67%. The increase will provide a recurring, annual benefit to our employees.
“The recently enacted tax reform positively impacts our business, presenting us with even greater opportunities to pursue our strategic initiatives, invest in our employees and improve shareholder value,” said Penske Automotive Group Chairman Roger S. Penske – Jan. 31, 2018 Penske Automotive Group press release
WebHobby Shop, LLC (Pontiac, Michigan) — $2.00 per hour raise for employees:
“I am sure it seems like ‘crumbs’ to elitists but I was able to give them a $2 per hour raise because of the tax reform. It was great to do and my staff is very pleased.” – Bruce Zak, Principal, WEBHOBBYSHOP LLC
Stormcloud Brewing Company (Frankfort, Michigan) — Savings from the Tax Cuts and Jobs Act allowed the company to buy new equipment and hire more employees:
“When the initial tax credit passed, it was an immediate savings for us and we were at a time when our business was continuing to grow, and so we took that opportunity to look at how we could invest in additional equipment, which brought on new employees as well,” said Stormcloud Co-Owner Rick Schmitt.
“We were able to add tank space, which allowed us to increase our distribution footprint, so today we’re in 35 counties in Michigan and likely we wouldn’t be there today if it weren’t for this tax credit,” said Schmitt.— Oct. 7, 2019 9 & 10 News
Lakestone Bank & Trust (Lapeer, Michigan) — Pay raise for hourly employees of $1 per hour; $1,000 bonuses for salaried employees:
Lakestone Bank & Trust announced Friday that employees will benefit from the recently announced tax reform law.
Bruce J. Cady, chairman and CEO of Lakestone Bank & Trust said, “We are very appreciative of all Lakestone Bank & Trust employees and certainly what they have accomplished over the years, particularly the last year; and we want to commemorate the passing of this historic, economy-stimulating tax reform law. This is a once in a lifetime opportunity and we know we want to reinvest much of the savings back into our bank and the first place we are going to put it is into the hands of our employees. Employees are our most important asset.
All hourly employees received a $1 per hour raise and all salaried employees will receive a $1,000 bonus. The bank’s board of directors overwhelmingly supported this action, resulting in a significant investment into the bank’s employees. — Jan. 28, 2018 The County Press article excerpt
Mill Steel Company (Grand Rapids, Michigan) – $1,000 bonuses for 400 full-time associates:
Mill Steel Co., one of the nation’s largest distributors of flat-rolled carbon steel, is pleased to award a $1,000 bonus to all 400 of its full-time associates following the tax cut passed by Congress and signed by President Trump.
Mill Steel announced this morning that all full-time associates across its nine operations nationwide, no matter each individual’s seniority, will receive a one-time bonus from the recent tax overhaul that reduces corporate tax rates. – Feb. 8 2018, Mill Steel Company press release excerpt
Renaissance Global Logistics (Detroit, Michigan) – Tax reform bonuses:
“Tax reform helped Renaissance Global Logistics, headquartered in Detroit, give bonuses to my employees. Nancy Pelosi call these bonuses ‘crumbs’ and that’s disrespectful. I would ask Nancy Pelosi to come to Detroit to ask my employees what they thought of the bonuses. As an employer, it was rewarding to be able to give them out. Tax reform gives small businesses like mine the chance to reinvest into our workforce.” – John James, CEO of Renaissance Global Logistics, Feb. 22, 2018
Cedar Springs Brewing Company (Cedar Springs, Michigan) — Used savings from the Tax Cuts and Jobs Act to hire new employees and purchase new equipment:
Across the nation, craft beer makers are urging Congress to pass the Craft Beverage Modernization and Tax Reform Act.
The current legislation gives small brewers a 50% reduction of their federal excise tax, but it expires at the end of 2019.
“It was relief for a lot of us,” Cedar Springs Brewing Company’s Dave Ringler said. “I can speak personally, that gave us a little cash flow ease. It was something we used to hire employees, buy new equipment. It definitely helped out.”
The new act would make that tax cut permanent.
“We’re all little guys,” Ringler added. “Almost all of us are entrepreneurs that are sole proprietors or small business people, so it really does help Main Street.”
“Small breweries really are the lifeblood of small communities,” Ringler added. “It’s been a huge part of revitalization in communities not only here in Michigan but nationally.” — Oct. 10, 2019 Fox 17 Article
Land & Co. (Wyoming, Michigan) — $1,000 bonuses for full-time employees; $500 bonuses for part-time employees; $250 bonuses for seasonal workers:
Land & Co., which operates 19 apartment communities in West Michigan, announced it will give its employees a special bonus of up to $1,000 in response the federal tax cut legislation signed recently by President Donald Trump.
“Land & Co. believes the Trump Tax Cut has generated a more optimistic vision for the future of business in West Michigan and the United States of America and wants their wonderful employees to be a part of and share in that vision,” the company said in a statement attributed to its owners, Roger Lucas and Dan Hibma on Monday, Feb. 5.
Land & Co.’s 151 full-time employees will each get $1,000; its 17 part-time workers will get $500 and its nine seasonal workers will each get $250. – Feb. 5, 2018 Mlive.com article excerpt
Haworth Inc. (Holland, Michigan) – $1,000 bonuses for full-time employees, $500 bonuses for part-time employees; bonuses totaling $5 million:
Matt Haworth, chairman of the family-owned company, announced to staff on Wednesday, Jan. 24, that full time employees would receive one-time bonuses of $1,000, and part-timers would collect $500.
More than 4,500 employees who work for Haworth-branded companies around the globe will collect the rare bonus.
Matt Haworth says the company is able to make the $5 million investment because of several factors including strong 2017 revenues which will be announced next month and an improved business climate state and nationally. The latter he attributes to a rollback of regulations and taxes, which lower company’s operational costs. – Jan. 25, 2018 Grand Rapid News article excerpts
[Click here to view the full list]
Photo Credit: Wikipedia Commons