Trump Wants to Make China Great Again
Perhaps this shouldn’t be surprising.
Five months ago, Republicans passed a deficit-exploding GOP tax scam that rewards corporations with massive tax breaks over hard-working families – incentivizing companies to ship jobs overseas, instead of hiring American workers.
“This bill is … dangerous. It creates a real incentive to shift real activity offshore.” – Stephen Shay, Senior Lecturer at Harvard Law School and former Treasury Department international tax expert
“It’s sort of an America-last tax policy … We are basically saying that if you earn in the U.S., you pay X, and if you earn abroad, you pay X divided by two.” – Kimberly Clausing, Economist at Reed College
“The Republican tax cut plan [is] likely to lead to more outsourcing of U.S. jobs and a larger trade deficit. That’s obviously a negative for factory jobs and net exports, but it’s also precisely the opposite of what Trump continues to promise to many of his working-class supporters.” – Jared Bernstein, Senior Fellow at Center on Budget and Policy Priorities
“By locating more tangible assets abroad, a corporation is able to reduce the amount of foreign income that is categorized as GILTI (Global Intangible Low Taxed Income … Similarly, by locating fewer tangible assets in the United States, a corporation can increase the amount of U.S. income that can be deducted as FDII (Foreign-Derived Intangible Income). Together, the provisions may increase corporations’ incentive to locate tangible assets abroad.” – Congressional Budget Office
And furthermore, thousands of American workers have lost their jobs as big corporations have reaped windfalls from the tax scam.
|CORPORATION||PROFITS UNDER #GOPTAXSCAM||LAYOFFS|
|Harley-Davison||Harley-Davidson is laying off 800 workers and rewarding executives and shareholders with $696 million in share buybacks, while opening a plant in Thailand.||800|
|Kimberly-Clark||“The company said it would use savings from the new Republican tax plan to fund the layoffs and restructuring…”||5,500|
|Macy’s||“[Macy’s] currently estimates the deferred tax impact of the federal tax corporate rate reduction will result in a non-cash tax benefit of approximately $550 million to $650 million.”||10,000|
|Walmart||“…based on the company’s average annual United States earnings over the past five years, he said, savings from the cut in the corporate tax rate alone could be roughly $2.2 billion a year, or 40 percent.”||7,500|
|AT&T||“AT&T Inc. booked a $20 billion paper gain from a federal tax overhaul that will hand it about $3 billion in extra cash this year…”||More than 4,000|
|Comcast||“Cable giant Comcast Corp… posted a big one-time non-cash gain of $12.7 billion on the Trump tax overhaul that slashed corporate tax rates…”||500|
|Sears||“[Sears] said Thursday that it expects a profit for the fourth quarter of between $140 million and $240 million. That's because it will get an on-paper gain of between $445 million and $495 million, due to a change in the tax law last year.”||220|
|Tyson Foods||“The company forecast more than $300 million in savings in fiscal 2018 related to the overhaul of U.S. tax laws…”||590|
|Pfizer||“In addition to the future tax benefits, Pfizer also reaped immediate rewards. The company said its ‘reported income’ in 2017 was $10.7 billion higher because of tax reform.”||300|
|Proctor & Gamble||“Ultimately, P&G says it will benefit from a lower tax rate that will drop from 28% to 21%. Excluding the one-time impact, the company said the tax cut produced a $135 million windfall for the quarter.||780|
|Bank of America||“Bank of America, for example, will likely add about $2.7 billion to its 2018 profits…”||103|
|Tenet Health Care Corporation||“[Tenet’s] cash tax payments will be approximately $10 million to $20 million lower each year over the next several years, which will be additive to free cash flow.”||700|
|Wells Fargo||Wells Fargo plans to close about 900 branches as part of efforts to cut costs in the wake of its mis-selling scandal even though the bank’s profits received an immediate $3.4bn boost from the US corporate tax cut.||Closing 900 branches|
|Devon Energy||Devon Energy Corp is laying off 300 workers, roughly 9 percent of staff … to streamline operations and boost the shale oil producer’s sagging returns and stock price.||About 300|
|CSX||CSX is targeting 6,200 job cuts over the next three years, while announcing a $3.5 billion increase in their share buyback program.||6,200|
|Hess Corporation||Hess Corp. is laying off about 300 employees or 13 percent of its workforce this year, while announcing a $1 billion in share buybacks.||About 300|
|Cardinal Health||Cardinal Health is laying off 100 workers, after rewarding corporate executives and wealthy shareholders with a $1 billion share buyback program.||100|
Republicans must be held accountable for their irresponsible tax scam that mortgages the future of seniors and working families in order to hand massive tax breaks to Wall Street, pharmaceutical companies, corporations shipping jobs overseas and the wealthiest 1 percent.
Democrats are fighting for the hard-working families with A Better Deal for everyone.