America needs to wake up and understand the scam that is being perpetrated upon the taxpayers with the Tax Cuts and Jobs Act.
This bill was basically designed to give corporate America exactly what they have wanted for years at the expense of ordinary citizens. And the GOP has enlisted these corporations to help sell their bill. We hear daily about how businesses are giving out bonuses and raises as a direct result of the tax savings from which they will benefit.
But let’s take a closer look at some of these. Wal-mart announced a $1,000 bonus but a closer look shows that is only if the employee has 20 years with the company. The actual average bonus is $190, and the raise from $10/hr to $11/hr still qualifies as poverty wages. Also, shortly after announcing these bonuses, Wal-mart reported the closure of 63 Sam’s Clubs costing thousands of jobs.
American Airlines also announced $1,000 bonuses supposedly because of their decreased tax burden but in reality, because of past losses American has not paid income taxes in years. AT&T is also giving out $1,000 bonuses, although many union workers had already been promised these bonuses in negotiations before the tax bill ever passed. AT&T also announced thousands of layoffs soon after this bill became law.
Wells Fargo stated that they are raising their minimum wage to $15/hr and the GOP tried to take credit for this but their CEO clarified that these raises were planned and not tied to the tax bill.
Meanwhile, consider exactly what employees are receiving from a $1,000 bonus. It equates to essentially a 50 cents an hour temporary raise for a year with no promise that more will be coming. And since a onetime bonus is considered supplemental pay, the money will be taxed at a 25 percent rate rather than their regular tax rate resulting in even less money than a 50-cent raise.
And what are corporations receiving for all of that generosity? An analysis of the bill estimates that the corporate tax cut portion of the bill will net one trillion dollars for business while the estimated cost of announced bonuses will be $981 million or .09 percent of that trillion dollars.
The fact is, most of these corporations have been sitting on piles of cash for years and could have easily given out raises and bonuses in the past. Finally, as we all have heard, the corporate tax rate cut is permanent while those for individuals will expire by 2027 resulting in higher taxes in the long run for many workers and even if the individual cuts are extended, the cuts still skew heavily in favor of the wealthiest among us. If this tax plan is such a good deal, why didn’t they make it permanent and more beneficial for everyone?