Because companies will have more after tax income, and could well decide to expand , when change would lead to hiring more employees as they expand. I heard there are also provisions in the bill for tax credits and depreciation adjustments for companies to buy new equipment and buildings, which is part and parcel.of expanding a business.
The article claims that this tax plan "induces" companies to hire and to raise wages. Increasing after tax income does not do that on its own. Why would companies use that extra income to hire and to raise wages instead of increasing dividends and buying back stock? Companies expand, not because they suddenly have some extra money, but because they believe that the increase in output well generate enough extra profit to justify the expense. The tax cut alone does not do that.
I heard there are also provisions in the bill for tax credits and depreciation adjustments for companies to buy new equipment and buildings, which is part and parcel.of expanding a business.
And what in all that increases wages?