Larry Summers: Company Bonuses Following Tax Reform Are a ‘Gimmick’

‘I think that it’s a very common device if you want to give somebody some money but you don’t want to promise it to them on a continuing basis, you frame it as a bonus’

Larry Summers: Company Bonuses Following Tax Reform Are a ‘Gimmick’ (The Washington Free Beacon)

Former Treasury Secretary Larry Summers on Friday called the bonuses that companies are giving workers due to the Republican tax reform law a "gimmick."

During an appearance on CNBC, Summers, who headed the Treasury Department under President Bill Clinton, was asked to react to several companies announcing bonuses "up to $1,000, in some cases more than that to workers sort of as a one-time thing."

Since President Donald Trump signed the tax overhaul into law last month, nearly 100 companies have announced plans to invest more in their workers—in the form of bonuses, higher wages, or other benefits.

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