I see Congress is going to tackle tax reform, including cuts to corporate tax rates.

Based on past practice there are several things sure to happen as a result. First, corporate profits will naturally go up. Every CEO will run to their board of directors and say “Hey! Profits are up. I deserve a raise!” The board will agree. Not only that, they will decide they get a raise, too. Everybody in the room gets a raise! Yay! Profits!

Do the people actually making stuff get a raise? Nah, the company needs to keep that money for investments. What investments you ask? Well, stock buy-backs for a start. That will drive the price of the company stock up. “Hey,” sez our CEO, “Stock prices are up. I deserve a raise.” The board agrees. They get a raise too! Everybody in the board room gets a raise. You — not so much.

Next investment is to build a new plant down south where labor is muuuuch cheaper. Forget hurricanes, tornado alley, floods and drought. Cheaper labor means lower costs. Lower costs means, Hey! The CEO gets a raise, the board gets a raise. You get less pay, but only if you pack up the truck, granny and the kids and move to Tennessee, or the Texas panhandle, or Alabama. You will make less than you do now, but live cheap. At least until your trailer gets blown off its wheels.

Enjoy the fruits of your work to get “conservatives” elected. Just remember who gets the pie and who gets the pits.

Michael Furr

Marysville