Bonuses are up $0.02 since the GOP tax cuts passed

[applegrove]

https://www.epi.org/blog/bonuses-are-up-0-02-since-the-gop-tax-cuts-passed/

"SNIP.....

There was a sharp jump up in the share of compensation going to bonuses between the second and third quarters of 2014, rising from 1.8 to 2.5 percent, but a fairly mild drift upwards since then. The increase from the fourth quarter of 2017 to the first quarter of 2018 was from 2.7 to 2.8 percent of compensation, an increase from $0.92 to $0.96 an hour. The third quarter, measured as of September 2018, shows the same share and level of nonproduction bonuses, $0.96 an hour and 2.8 percent of compensation. The inflation-adjusted increase (all inflation-adjusted data adjusted to September 2018 dollars) in bonuses was just $0.02 an hour between the fourth quarter 2017 and the third quarter of 2018.

An examination of overall wage and compensation growth does not provide much in the way of bragging rights for tax cutters, especially given the expectation of rising wages and compensation amidst low unemployment.

The $0.02 increase in inflation-adjusted bonuses per hour over the last three quarters came as W-2 wages (defined as direct wages plus wages for paid leave and supplementary pay) actually fell $0.07, a 0.3 percent decline.

The White House contention that corporate tax cut-inspired widespread provision of bonuses that led to greater paychecks through bonuses or wage increases for workers is not supported by the BLS Employer Costs for Employee Compensation data. This is not surprising. Press releases—“a flurry of corporate announcements”—by a small group of administration-supporting firms do not create widespread bonuses or wage growth for workers. Neither do tax cuts, at least within the first nine months.

......SNIP"

[democratisphere]

1. That must be what the boss meant when he asked me to put in my $0.02.

[applegrove]

2. HA! Good one.

[democratisphere]

3. That makes no cents!