Think About It: Tax Planning - KFVE, K5-Hawaii News Now, Local Programming

January 4, 2018

Think About It: Tax Planning

With the new federal tax cuts now in place, debates are under way as to whether or not anyone other than the really rich will really prosper in the coming years. Trickle-down economics had a full test in Kansas a number of years back, and it failed miserably. But some blame the implementation there, not the system. So we'll see if companies will use their new tax cuts to shore up employment ranks, invest in new business development, or simply stock their stocks and coffers. After all, many companies have thrived even after reducing payrolls during the recession six or so years ago. Everyone just work harder with less, we were told.

Locally, we've seen the largest banks hand employees a $1,000 bonus and raise starting wages earlier than expected. The biggest boost locally for middle class and lower middle class employees might be the simple fact that Hawaii is pretty much at full employment. When the unemployment rate dips to just 2%, which it is here locally, companies often need to find added incentives to keep employees from looking seriously at the next great opportunity that might be out there. With the cost of living here so high, who can blame anyone, even loyal employees, for seeking what seems to be a better opportunity somewhere else.

So we will see in the next year or two just what impact the new tax plan means for employees and employers. We will see if it offers stimulus or simply widens the gap between the American haves and the would-like-to-haves. Locally, now might be an ideal time for creativity in figuring out how and where to provide economic incentives to private developers for truly affordable housing units, instead of more million dollar unit developments that offer relatively few opportunities for first-timers. After all, why build $350,000 units when the million dollar ones sell quickly and offer more profit? It's a new year with new rules. Let's hope locally everyone can take advantage and see brighter financial days and opportunities ahead. Think about it…

Powered by Frankly
All content © Copyright 2001 - 2018 Raycom Media. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.
FCC Public File
Phone: 808-847-9371
Closed Captioning