Former Treasury Secretary Dismisses Tax Cuts As “Gimmicks”


On this past Friday, former Treasury Secretary Larry Summers opined his thoughts on the aftereffects of the Tax Cuts and Jobs Act, as reported by The Daily Wire.

Summers on Bonuses for Americans

Over the past few weeks, many Americans have experienced monetary bonuses from the large companies and businesses which employ them. This is a victory that conservatives and Trump supporters have lauded. However, not everyone perceives the aforementioned tax cuts in a favorable manner.

When CNBC host Jon Fortt asked Summers about his disposition regarding monetary increases for hardworking Americans, the latter responded with there hereinafter remarks:

I think it’s a gimmick.

Fortt then asked Summers to follow up with an explanation. Summers’ continued remarks read as follows:

I think in many cases, the firms have to raise wages because labor markets are tight and so why not curry some favor with the White House by linking it to the tax cut? It’s a very common device. If you want to give somebody some money, but you don’t want to promise it to them on a continuing basis, you frame it as a bonus.

So I think there’s a lot of appearance management here, and look, the corporate tax cut’s gonna be forever. If the firms really believe this had to do with the corporate tax cuts, why aren’t they committing the bonuses?

More on Economic Gains for Americans

Summers may view tax cuts and pay increases as a “gimmick,” however, Americans For Tax Reform (ATR) seems to have a contrasting outlook. A report from them reads as follows:

At least 267 companies have already announced wage and salary increases, bonuses, or 401(k) match increases.

Some of the aforesaid companies include Nephron Pharmaceuticals, Bank of Hawaii, Starbucks, Walmart, Capital One, and many others. Furthermore, many employees will receive bigger and better 401Ks, company stock, and other workplace perks. Summers did not state whether or not he believes hardworking Americans view the aforementioned economic gains as “gimmicks.”

What Do Americans Think of Bonuses from the Tax Bill?

Unlike Summers, countless Americans have expressed happiness and appreciation for the aftereffects of the Tax Cuts and Jobs Act. The GOP tax bill has received accolades for “boost[ing] incentives” and causing “wage increases, bonuses, pension funding, and capital investment[s].” Ultimately, a considerable amount of people in this country do not view the tax bill as a “gimmick.”