The Tax Armageddon That Wasn’t
When President Trump proposed lowering the corporate tax rate down to 21% (among other items in the GOP-backed tax bill), the media and others on the left had a field day. The sky would fall. Evil corporations would become even more evil. And the best… we would face “tax armageddon.” Let’s see what those evil corporations are doing now that we are in the post apocalypse.
There was much debate, and as usual, the passage of the Trump tax cuts hinged on establishment-type Republicans. But Democrat politicians and their media mouthpieces yelled the loudest. As The Hill reported back in December, Democrat Rep. Nancy Pelosi likened the tax bill to economic “armageddon.”
Flanked by other top Democrats in the Capitol, the minority leader blasted Republicans for championing a tax proposal she equated to “the end of the world.”
“The bill that the Republicans are putting forth to go to conference is probably one of the worst bills in the history of the United States of America,” Pelosi said.
Never mind that the United States had one of the highest corporate tax rates in the entire world, and that those tax rates are a prime reason for many corporations to base some of their operations overseas. But once the tax plan passed and was signed into law, what did the evil corporations do? Take a look…
As reported by CNN, a number of companies have already announced that they are passing the tax savings on to their employees. In a single story, CNN highlights AT&T, Boeing, Comcast, Fifth Third Bancorp, and Wells Fargo as making major changes due to the new tax code.
AT&T –The telecom firm said it will give 200,000 employees a $1,000 bonus. In a statement, AT&T CEO Randall Stephenson hailed “Congress, working with the President” for taking a “monumental step” that will “create good-paying jobs.”
Boeing — The aerospace giant said it will spend $300 million on workers. The funds will be split evenly among worker training, upgrading facilities and a program that matches employees’ charitable contributions.
Wells Fargo — The mega bank said it will hike its minimum hourly pay rate to $15. That will mark a $1.50 increase over the company’s current minimum of $13.50 per hour. The bank also said it will increase its charitable giving by about 40% to $400 million.
Does this sound like end-of-the-world stuff to you?
Fox News Reports that smaller corporations are also stepping up, citing the software company Spellex as one who is passing tax savings to employees.
Spellex Corporation, a Tampa-based software developer, gave employees a $1,000 bonus check, and the company made sure President Trump received credit for the tax cut bonus.
On Spellex’s bonus checks, it read in the “Memo” section: “Trump Tax Cut and Jobs Act.”
Spellex Corporation founder and CEO Sheldon Wolf said on “Fox & Friends” that he was inspired when he saw bigger companies like AT&T and Bank of America giving out bonuses and sharing the tax cut savings with employees.
The largest employer in the United States — Walmart — announced it would boost its minimum wage and will give “one-time $1,000 bonus payments to workers, depending on length of service at the company.”
Now, Apple has joined the party, announcing the company will open a new campus and will pay $38 billion in taxes on cash that it had overseas.
Apple Inc (AAPL.O) will open a new campus as part of a five-year, $30 billion U.S. investment plan and will make about $38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by U.S. President Donald Trump.
Between the spending plan, hiring 20,000 people, tax payments and business with U.S.-based suppliers, Apple on Wednesday estimated it would spend $350 billion in the United States over the next five years.
There is certainly more that can be done on the tax front, but this is a great start. The tax code needs to be simplified — a point that has been the topic of many political stump speeches. There should be no corporate tax at all, but again, this tax bill was the beginning.
The point is that no matter what Trump does, the media will attack it. The Democrats will attack it. The establishment (Republicans and Democrats) will attack it. More money in Washington means more power. It’s as simple as that. This was a small step in returning a little bit more power to the people. Now, into your bomb shelters… the apocalypse is upon us.