DENVER -- It is now law.
On Friday, before departing for Florida, President Trump signed a sweeping tax reform plan into law, the largest in over 30 years.
One of the big questions is what impact will the reduction in the corporate tax rate have on the economy?
Previously the corporate rate was 35% nationwide, it will now be 21%.
Some major corporations have already announced bonuses for employees.
AT&T and Comcast announced $1,000 bonuses this week while Wells Fargo announced a new minimum wage of $15/hour.
But what about smaller Colorado businesses?
“We are really excited about,” Zach Rabon, owner of Mockery Brewery in Denver said.
In addition to any small business savings Rabon may expierence, the tax bill reduced federal excise taxes for craft breweries.
Previously, each barrel of beer warranted a $7 federal tax. The new Law reduces that to $3.50 a barrel.
“We are looking at adding staff,” Rabon said.
Rabon also hinted at new investment in the business, like larger fermenters.
“We got a long wish list but we are looking to get a canning line going,” Rabon added.
But other businesses we spoke to say they are holding off on giving any raises or bonuses for a while until the implications of the tax bill can be fully understood.
“There is not a huge rush to make a huge change,” Anthony Lambatos, owner of Footers Catering in Denver said.
Lambatos employees over 30 people full time and over 70 people part time.
“Yes taxes are going down but certain deductions are going away, so time will tell how much impact there really is,” Lambatos added.
Lambatos said any new savings will likely be invested in current and future employees—covering the cost for an increased minimum wage in Colorado come January 1.
Experts say while bonuses or raises will vary from business to business, employees may have a stronger negotiating power for requesting a raise in the new year.AlertMe