One of the selling points of the "tax reform" legislation, now commonly known as the Tax Cuts & Jobs Act, or TCJA (or the Corporate Tax Lawyer Full Employment Act), is that it would in time increase wages by a certain amount. The economists' view of how this would happen is by decreasing the marginal cost of new investments - by both introducing full expensing and lowering the business tax rate (corporate and pass-through). This would cause more capital investment by business, which would increase labor productivity, which would then result in increased wages.*
This is the typical view of economists for, like, forever (technical term). But an interesting thing seems to have happened in the past 25+ (or more) years, which is that increases in labor productivity have not been matched by increases in wages. See, e.g., this paper. See also this article which attributes the decoupling to wage inequality, the average wage rising faster than the median wage. Here is a third paper talking about both.
This has substantial implications for public policy. In the past, increased capital formation could be relied upon to (eventually) increase median wages. If that is no longer the case, then a different approach is needed and it is not clear to me that policy makers, or even economists generally, recognize this. Moreover, this, combined with the anticipated large increase in workplace automation, may mean that median wage increases are a thing of the past, resulting in attendant large negative consequences, a potential crisis.
So, what to do? One idea is a universal basic income. Others include increasing the minimum wage, getting the fed to stop clamping down on inflation worries any time the labor market gets tight, among others (see the third paper). Whatever the solution, it is clearly not on offer from the current U.S. government, and I wonder even if the government changes these things can be done. ISTM that this, along with climate change, are the gigantic, worldwide public policy problems of the coming decades. Whee, as they say.
*Notably there was little, if any, selling of the TCJA before passage by even the GOP on the basis of "big corporations will hand out bonuses!!!" As noted, this is not the economists' view of how it was supposed to work and is also, ISTM, rather disgusting of these businesses to announce their (one-time, and meager relative to the tax cuts) bonuses and tie them to TCJA's passage - a rather cynical and transparent attempt to suck up to Trump. Notably, bonuses deductible in 2017 will reduce taxes at a 35% clip, whereas any bonuses deductible in 2018 only result in tax savings at 21%....
**Related to this is this report from the BLS, which notes "workers in the U.S. business sector worked virtually the same number of hours in 2013 as they had in 1998—approximately 194 billion labor hours.1 What this means is that there was ultimately no growth at all in the number of hours worked over this 15-year period, despite the fact that the U.S population gained over 40 million people during that time, and despite the fact that there were thousands of new businesses established during that time." That seems remarkable to me.