The tax overhaul received oodles of positive press in December and January when companies, like Walmart Inc., announced one-time bonuses and expanded benefits for employees. That may have boosted total compensation, which includes pay and perks. That measure climbed 2.7 percent in the first quarter, the best performance since 2008.
But wage gains alone remain tepid. In the first quarter, the measure barely moved above the 2.2 percent average of the recovery, and in April it missed estimates.
Cash on hand at S&P 500 companies is soaring to record levels in 2018, to $1.78 trillion, boosted in part by the tax cut. But on a relative basis, their cash holdings rose 4.6 percent, slightly below the average quarterly gains last year. That suggests uncertainty over how the tax law will be implemented, especially how overseas profits will be treated.
This article was provided by Bloomberg News.