[vintageseltzer]

Perhaps it's not the biggest factor, but it is likely to reduce employee benefits like education stipends, relocation stipends and dependent care FSAs.

Previously, employers were able to deduct the costs of these benefits from their tax bill, saving them money. The new tax plan eliminates these benefits (https://www.shrm.org/resourcesandtools/hr-topics/benefits/pa...).

Now that these benefits are much more expensive, you can except these benefits to reduced or eliminated, and the remaining costs to be take from your future salary.

[koolba]

An alternative view is that those people will no longer receive tax free benefits that the rest of us aren't getting.

I'm hoping they take things a step further and one day eliminate the health insurance deduction for corporations and count the cost as income for the employee. It's nonsense that a corporation can deduct it as an expense but an individual getting their own insurance can't. Sure you can set up a pass through entity but why should you have to?

[mancerayder]

I understand and agree with the sentiment, but not the conclusion. What happens when they can no longer deduct it, won't employees' health plans become even worse?

[jdavis703]

Yes, but those benefits should be paid for in a lower overall corporate tax rate. There's many flaws in the tax bill, but eliminating special interest tax deductions in favor of lower taxes for everyone who isn't a special interest isn't one of them. Unfortunately the tax bill includes many new special deductions for special interests like craft breweries, and people passing on multi-million dollar estates to their children.

[vintageseltzer]

Corporations are enjoying record profits for years but wages have been stagnant since the 90s. The idea that when corporations receive more money they pass on a proportional value of benefits to their employees or customers is a laughable fiction. In fact, they will proudly say that this is a good thing, as their only responsibility is to the shareholder.