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GOP Tax Scam, One Month Later: Big Businesses Profit While Corporations Close Doors, Fire Workers

Just one month since the Republican tax scam was signed into law and here’s what we’ve learned: it could reward companies for shipping jobs to other countries, it created a *new* loophole to let corporations dodge taxes, and very few companies are using the savings to boost employee’s wages. And today two new reports reveal Republicans are trying to sell an “invisible policy change,” and that the GOP’s own polling shows their tax scam remains deeply unpopular with voters, even in conservative districts.

From Democratic Senatorial Campaign Committee Spokesman, David Bergstein: “If you’re a multi-national corporation outsourcing American jobs to places like China, a Wall Street banker, or a millionaire, you’ve got every reason to celebrate the GOP tax scam. For hardworking Americans, the GOP agenda means higher taxes and layoffs so that the wealthy and well-connected can get another handout.”

*NEW* Politico: Super PAC memo: House GOP still has to sell tax cuts

“According to CLF’s own polling, a plurality of voters in at least 50 battleground districts believe the GOP tax plan will increase their taxes, not cut them.” 

*NEW* Politico: What tax cut? GOP risks selling an invisible policy change.

“Some may not notice the increase, especially when all sorts of other things can affect people’s take-home pay, from pay increases to hikes in premiums for employer-sponsored health insurance… A string of recent polls show one-third of voters believe they will pay more under the plan.” 

Indianapolis Star: AT&T, touting bonuses and investment fueled by tax reform, quietly lays off thousands.

“When AT&T Inc. announced it would hand out holiday bonuses to 200,000 workers thanks to Congress’ recent tax overhaul, the company’s statement failed to mention a separate, yet notable, personnel matter: Many employees will be getting laid off in the coming weeks.”

CNN Money: Only a small slice of corporate America has shared tax savings with workers so far.

“Despite the political rhetoric, only a small fraction of corporate America has decided to share the tax bonanza directly with workers.

How companies use their tax savings will be decided by longer-term decisions than one-time bonuses. It will help determine whether the massive corporate tax cut will trickle down to workers and consumers, as the White House has promised, or tilt more toward shareholders.”

New York Times: Tax Law May Send Factories and Jobs Abroad, Critics Say.

“The bill that Mr. Trump signed… could actually make it attractive for companies to put more assembly lines on foreign soil.

What could be more dangerous for American workers, economists said, is that the bill ends up creating a tax break for manufacturers with foreign operations. Under the new rules, beyond the lower rate, companies will not have to pay United States taxes on the money they earn from plants or equipment located abroad, if those earnings amount to 10 percent or less of the total investment.

‘Having such a low rate on foreign income is outrageous,’ said Stephen E. Shay, a senior lecturer at Harvard Law School and a Treasury Department official during the Reagan and Obama administrations. ‘It creates terrible incentives.’ […]  Such companies, Mr. Shay said, now have no reason to resist the temptation to shift some of their operations abroad, since they would end up paying half the rate they would pay in the United States.”

Reuters: Corporations may dodge billions in U.S. taxes through new loophole: experts.

“A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.”

Axios: Health care companies are thrilled about the tax overhaul.

“Health care firms — many of which have a vast majority of their business in the U.S., if not all of it — expect to see billions of dollars in corporate tax savings. Companies plan on using that money to pay down debt, buy back stock or acquire competitors — not to funnel higher wages back to workers.”

CNBC: US firms will now focus on stock buybacks after tax cuts, David Rubenstein says.

“Companies are likely to focus on bolstering their capital in the wake of massive U.S. tax cuts.

Other multinational executives have echoed similar projections, with Bank of America chief Brian Moynihan telling investors last week that the “largest portion” of tax savings would “flow to the bottom line through dividends and share buybacks.” The trend would appear to contradict Republican claims that its tax package, the biggest tax overhaul in three decades, was targeted at strengthening the middle class.”

CNBC: Few large US companies say they’ll use tax savings to boost wages, CNBC survey finds.
Associated Press: Bank execs sing praises of new tax law as windfall looms.
New York Times: Banks Are Big Winners From Tax Cut.
Yahoo: Tax cuts are going to keep being a boon to the shareholder class.
Bloomberg: “Companies Reap Their Tax Windfall”.
New York Times: Bonuses Aside, Tax Law’s Trickle-Down Impact Not Yet Clear.
Philadelphia Inquirer: Comcast quietly fired hundreds in direct sales before Christmas.
Indianapolis Star: Carrier plant to lay off 215 workers on Thursday.
Business Insider: Walmart is abruptly closing 63 Sam’s Club stores and laying off thousands of workers.
USA Today: Kleenex, Huggies maker to cut up to 5,500 jobs, close 10 plants.

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