Economic outlook for retailers in light of tax reform - WGEM.com: Quincy News, Weather, Sports, and Radio

Economic outlook for retailers in light of tax reform

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QUINCY, Ill. (WGEM) -

Companies including Walmart announced raising minimum wage and employee bonuses because of recent tax reform, but companies across the country are cutting jobs. Retail store Sears announced layoffs for more than 200 corporate positions. Last month Sam's Club, who owns Walmart , closed roughly 60 stores across the United States.

Quincy University Professor of Accounting and Finance Dr. Mitch Ellison, says the tax reform has no correlation to layoffs and suggest failed business model structures have caused jobs cuts.

"Almost every company that is losing jobs, is not doing so because of the tax laws. The tax law can only do to things you can even expand the production or give bonuses to the employees," Ellison said.

Companies can also use tax breaks to pay off debts or share money with share holders Ellison added.

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