Debt payments, Icelandic adventures, car repairs: How some workers are spending their tax cut bonuses
CHICAGO - Paola Hinton's hands were shaking in December as she pulled out bundles of cash and gave each of her 20 employees a $500 bonus. No one in the crowded back room at Five Senses Spa, Salon and Barbershop in Peoria, Ill., had ever seen $10,000 in cash, and Hinton had it all in a little briefcase.
The employees' faces lit up, recalled Hinton, who launched the business almost 12 years ago. She has never been able to give bonuses like this before, but the new federal tax law passed late last year made it possible, she said.
"It's a direct impact," said Hinton, 41. "I know if I give them $500, they're going to be able to go do whatever they need to do."
The sweeping tax overhaul, which President Donald Trump signed into law Dec. 22, permanently lowers the corporate tax rate from 35 percent to 21 percent, among other changes. Republicans supporting the measure said the business tax cuts would benefit workers, as well as shareholders and
