We estimate that US businesses are likely to receive a windfall of around $200 billion per year from the recently-enacted corporate tax cuts. The amount that firms will share with their workforce in the form of higher wages is open to debate; we have therefore simulated earnings growth using several different assumptions. Our baseline forecast for wage growth by the end of this year, which assumes that firms retain all of the savings from the cuts to corporation tax, is…

Tax cuts to drive US wages higher