What Could You Do with Your Tax Reform Savings?

By February 8, 2018Taxes

You might have heard that benefits from the new tax reform bill amount to just “crumbs.” So says Nancy Pelosi, anyway.

Pelosi, along with other lawmakers opposed to tax reform, are trying their hardest to convince Americans that bonuses, higher wages and benefits are bad for them. After all, the $1,000 bonuses that hundreds of companies are giving out thanks to tax reform won’t go very far for most people, according to Debbie Wasserman Schultz.

$1,000 sounds pretty good to us, though.

It sounds like 250 pumpkin spice lattes, seven and a half years of Netflix, or a new iPhone X. $1,000 sounds like groceries in your kitchen, gas in your car and heat in your home.

$1,000 also sounds like an investment you can make in your future. Here are just a few things you can do with the “crumbs” that more than 300 companies are giving their employees because of tax reform.

  1. Pay more of your student loans off. Who doesn’t have student loan debt? With a tax reform bonus and more money in your paycheck each pay period, you can put down larger payments and more quickly get out from under the weight of debt.
  2. Put more into your savings and retirement. It’s estimated that Social Security will stop paying out full benefits by 2034, so what you paid into the broken program over your lifetime likely won’t be there when you retire. The extra money in your paycheck can be sent immediately to a savings account or a retirement fund to prepare for your future. In fact, the average 25-year-old who invests his or her $1,000 today at a seven percent return rate would get close to $15,000 by the time they hit retirement.
  3. Invest in a car, a house or something else. Maybe this is your chance to fix your car, get the new one you’ve been desperately needing or upgrade to home ownership instead of renting. Maybe it’s that new suit or dress you’ve been eyeing for your upcoming job interview! A tax reform bonus is a chance to put money into those dreams without disturbing your bills and your life.

The benefits of tax reform aren’t crumbs, as out-of-touch politicians would make you think. They can be the difference in paying bills, a trip with your family or money that you’ll add to for years to come. Higher wages, increased benefits and more money in your pocket is a good thing, so enjoy it!

Author Generation Opportunity

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