Generation Opportunity, a free-market oriented non-profit organization geared towards Millennials, offered insight into how Millennials benefit from last year’s tax reform law, passed and signed into law by the GOP and President Donald Trump.
In their blog post, Generation Opportunity rebutted the repeated claim by Democratic House Minority Leader Nancy Pelosi, who said that $1,000 tax reform bonuses at some companies are “crumbs” for every day working Americans. Their suggestions are:
- Pay more of your student loans off. Who doesn’t have student loan debt? With a tax reform bonus and more money in your paycheck each pay period, you can put down larger payments and more quickly get out from under the weight of debt.
- Put more into your savings and retirement. It’s estimated that Social Security will stop paying out full benefits by 2034, so what you paid into the broken program over your lifetime likely won’t be there when you retire. The extra money in your paycheck can be sent immediately to a savings account or a retirement fund to prepare for your future. In fact, the average 25-year-old who invests his or her $1,000 today at a seven percent return rate would get close to $15,000 by the time they hit retirement.
- Invest in a car, a house or something else. Maybe this is your chance to fix your car, get the new one you’ve been desperately needing or upgrade to home ownership instead of renting. Maybe it’s that new suit or dress you’ve been eyeing for your upcoming job interview! A tax reform bonus is a chance to put money into those dreams without disturbing your bills and your life.