Tonight President Trump is hosting a rally in Milwaukee. Wisconsin residents are raking in the benefits of the Tax Cuts and Jobs Act, signed into law by Trump:
Doubled child tax credit: 424,970 Wisconsin households are benefiting from the TCJA’s doubling of the child tax credit. The Trump tax cuts doubled the child tax credit from $1,000 per child to $2,000 per child.
Doubled standard deduction: 1,954,190 Wisconsin households are benefiting from the TCJA’s doubling of the standard deduction. The Trump tax cuts doubled the standard deduction from $6,000 to $12,000 for individuals, and from $12,000 to $24,000 for married couples. Thanks to the Trump tax cuts, nine out of ten households now take the standard deduction which reduces their tax burden and simplifies the tax filing process.
Obamacare individual mandate tax relief: Thanks to the Trump tax cuts 80,240 Wisconsin households are no longer stuck paying the Obamacare individual mandate tax. Most households hit with this up-to-$2,085 tax made less than $50,000 per year.
Tax cut: Every income group in every Wisconsin congressional district saw a tax cut.
Lower utility bills: As a direct result of the TCJA’s corporate rate cut, Wisconsin residents 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. Wisconsin examples of utilities passing on tax savings to customers include – but are not limited to Alliant Energy, We Energies, and Superior Water, Light & Power.
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:
MusicNotes (Madison, Wisconsin) – Salary increases for employees:
The new year brings a new salary increase for all 55 employees at Musicnotes, Inc., the worldwide leader in digital sheet music based in Madison, Wisconsin. Effective January 1st, the 3% salary increase is tied specifically to corporate tax reform and is in addition to Musicnotes’ existing annual raises to eligible employees.
“We’re genuinely appreciative of our loyal and gifted team at Musicnotes and we are thrilled to share the benefit of lower corporate taxes with them,” said Executive Chairman, Tim Reiland. “It’s the right thing to do and it’s also smart business.”
After a strong 2017 sales performance, Musicnotes was named to the Internet Retailer Top 1000 list for the 13th straight year in 2017 and garners over half of the worldwide digital sheet music market, according to traffic statistics from SimilarWeb. The company has sold products to over six million customers since 1998.
“Musicnotes has paid a full corporate tax rate over the past several years,” indicated Reiland. “Beyond the Jan 1 salary increases, we will accelerate hiring plans and also have increased flexibility regarding technology projects and investment opportunities in 2018 and beyond.”– Jan. 8, 2018 MusicNotes press release
Trico (Pewaukee, Wisconsin) — Employee bonuses, 401(k) expansions, hiring new employees:
For example, as a direct result of the tax cuts, full-time employees at the Pewaukee-based Trico Corporation will receive $650 bonuses and increased contributions into their 401(k) accounts. The company will also hire more full-time workers to fill new positions. – April 17, 2018, Rep. Jim Sensenbrenner article excerpt
Brian’s Electric (Stratford, Wisconsin) – The Tax Cuts and Jobs Act allowed the company to increase wages:
Jacobs told Budget & Tax News he has passed the benefits of TCJA along to his employees,
“I gave out, when you add it all up, about $150 an hour worth of wage increases,” Jacobs said. “Depending on how they have their taxes taken out of their checks, the lowest was around $14 a week in net take home pay, all the way up to $65 in net take home pay.” – Sept. 12, 2018, Heartland Institute article.
Koehler Flooring, Inc. (Green Bay, Wisconsin) – This family carpet and flooring company gave $1,000 bonuses to seven full-time employees:
“The tax reform bill is a huge win for the USA and will have positive effects on our floor covering business. Our customers have more capital to use for expansion and remodeling which is great news for all construction trades. There is more work to be done on the tax code but it’s nice to see this recent reversal on punishing success. My crew was very happy to receive their tax reform good news.” — David Koehler, President.
Sprecher Brewing Company (Milwaukee, Wisconsin) – The brewery used savings from the Tax Cuts and Jobs Act to reinvest in the company and create new jobs:
“Other breweries in this area are certainly doing the same thing with the savings they get as we are here,” said Jeff Hamilton, president ofSprecher Brewing Company. “This act gave a bit of a tax break to all alcohol producers.”
Right now, the team at Sprecher said the money saved from the tax breaks goes back into the business.
“Gives us additional funds that can be reinvested back into the company,” Hamilton said. “Back into creating additional products, which on top of that creates new jobs.” – Oct. 9, 2019, Fox 9 article.
Associated Bank (Green Bay, Wisconsin) – $500 employee bonuses (exact number receiving bonus unknown at this time); base wage will rise from $10 to $15 per hour:
Associated Bank today announced plans to raise its minimum hourly wage from $10 to $15 per hour and to distribute a one-time bonus of $500 for all hourly, non-commissioned employees once tax reform legislation is signed into law.
The pay increase and one-time bonus are expected to be distributed during the first pay cycle of 2018. This combined investment in the company’s workforce will positively impact 55% of its employees.
“Every day our customers share stories of our colleagues delivering a positive customer experience,” said Associated Bank President and CEO, Philip B. Flynn. “Our ability to recognize their work in this way is something we are proud to do.”
Flynn said the new tax legislation, particularly the reduction in business tax rates, allowed the company to share some of the benefits with its employees. It also helps position the company to further enhance the customer experience and its community investments in the future. — Dec. 21, 2017 Associated Bank press release
Central Standard Distillery (Milwaukee, Wisconsin) – The Tax Cuts and Jobs Act allowed the distillery to hire four new employees, invest in a new facility, and ordered a new bottling line:
Central Standard Distillery co-owner Evan Hughes said his business was able to grow faster than it normally would because of the act. He attributes four key growth areas to the success of the act, including: Central Standard hired four new employees, bringing staff totals to 22 people. The company invested in a 15,000-square-foot facility on Clybourn Street. In addition, Central Standard ordered a new bottling line for improved efficiency and offered health care to all of its employees.
“It gave us the courage to expand our business quicker than we normally would,” Hughes said. – Dec. 10, 2019, Milwaukee Business Journal.