How the Republican Tax Cuts Are Helping Colorado

Colorado is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
393,740 Colorado households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every Colorado congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.
1,081,600 Colorado households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.
98,160 Colorado households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.
Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Colorado. residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins.
Thanks to the tax cuts, Colorado businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
King Scoopers ( Denver, Colorado) – raised 401(k) contributions, launched new tuition program for employees:
This year, King Soopers made two changes dedicated to supporting workers. Reinvesting the money it gained from the GOP tax reform bill, King Soopers raised its employee 401(k) match from 4 percent to 5 percent on June 1, Williamson said. In May it also launched its “Feed Your Future” program.
Thanks to tax reform, the grocery chain raised its employee 401(k) matches and offered workers a new tuition reimbursement program. – September 17, 2018 – Denver Post
SALUS (Manitou Springs, Colorado) - Hiring a new engineer, equipment deductions:
“For our business, pennies add up,” Jerell Klaver, co-owner of SALUS, a 14-year old business that produces health and beauty products, said in a recent article on app.com. “If I can save a penny, it gets big really fast.” Taking advantage of the future deduction on equipment purchases, Jerell and Elissa Klaver did the math and hired an engineer to help make new manufacturing equipment for their company. All told, the couple expects to save between $500,000 and $1 million annually under the new law. - April 18, 2018, Capital One blog post excerpt
Ball Corporation (Broomfield, Colorado) - Expanding operations, hiring new employees:
We have also heard from Ball Corporation Senior Vice President and CFO Scott Morrison, who told us that his company is looking to expand its presence in the United States and add 400 more workers to its payrolls. - January 9, 2018, National Association of Manufacturers Shopfloor blog excerpt
Greystar Real Estate Partners (Colorado Springs, Colorado) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Elan at Pikes Peak, as it would be called, would join several multifamily projects built or proposed in recent years or that are under construction by developers who say they're bullish on the Springs' downtown.
At the same time, developers say they want to meet the demands of growing numbers of renters seeking an urban lifestyle — the ability to walk and bike to nearby restaurants, bars and coffee shops.
"Greystar, being a leading developer of multifamily nationwide, there's not a better indicator for really a strong, healthy and attractive market," said Alex Armani-Munn, economic development specialist for the Downtown Partnership advocacy group in Colorado Springs. "We see this as a win, not just driving housing, but further establishing downtown as a great market for development."
The downtown site also is part of a federal opportunity zone, which offers tax breaks to investors who fund projects inside the zone's boundaries.
The addition of apartment projects such as Greystar's proposal gives downtown an even bigger boost, Armani-Munn said. The project will generate more property tax revenue than the current buildings on the site, while its renters will eat and shop downtown and drive sales tax collections in the area, he said.
At the same time, the location of Greystar's project will help enhance redevelopment efforts along Pikes Peak Avenue and on the eastern edge of downtown.
"It represents the exact type of redevelopment and infill development that we love," Armani-Munn said-- June 19, 2020 Colorado Springs Gazette article
Centennial Bolt (Denver, Colorado) – Tax reform bonuses, hiring new employees, updating facilitates, increasing paychecks, increasing community giving, and business expansion:
Mark Cordova, President of Centennial Bolt and a longtime champion of American manufacturing is part of the National Association of Manufacturers’ Executive Committee, is hailing the recently signed legislation...
“I’m mapping out putting in a new plant in the Midwest,” Cordova said. The new product line he plans to launce from that facility “is something right now that’s being manufactured primarily in China. We’re actually going to be at a competitive level to build it in the United States again.”
Other advances Cordova attributed to tax reform include:
- New hiring: To staff Centennial Bolt’s new facility, Centennial Bolt plans to increase the size of its workforce between all its partner companies by 30 percent, growing overall from 50 employees to 65 employees.
- New upgrades: The company plans to completely overhaul production at his existing facilities in Colorado and California.
- New investments: Over the next two years, Cordova plans to “pour all of his profits back into the business,” and setting Centennial Bolt up to be competitive as technology continues to advance. “In our industry, there are people using 1940s equipment because it still works,” Cordova said. But the big savings from tax reform will “really allow companies that weren’t willing to make those kind of capital investments to modernize their facilities.”
- New bonuses: Last year, soon after the tax reform was signed into law, Centennial Bolt gave its hourly workers an unexpected bonus as a “Christmas gift,” totaling about 5 percent of their annual salary. Cordova stressed that the windfall for his employees was made possible solely because of the benefits of tax reform. Centennial Bolt intends to offer another similar-sized bonus sometime in mid-2018, also as a result of tax savings.
- Increased paychecks: Because Centennial Bolt has generous profit-sharing with their employees, much of the increased profits from Centennial’s expansion and capital investments will also go directly into the paychecks of their workforce.
“Tax savings aren’t just for me,” said Cordova. “It’s so people can have a better life. It’s always been a family motto: our goal is that people will do better for themselves so they can improve their lives and take care of their own.” Centennial Bolt’s new equipment will not just allow the firm to increase production and make work easier for employees—but Cordova said it’ll give the men and women on his shop floor a new reason to be hopeful, rather than watch more and more of their manufacturing jobs go overseas.
In addition, Centennial Bolt is using some of its tax savings to give back to the community—namely, its efforts to combat homelessness in its native Denver. At the end of last year, Centennial Bolt supported the opening of a new, 150-bed women’s shelter—helping an important group of people that have long been overlooked. Centennial Bolt also plans to expand its charitable giving to California, where it also has a sister facility, Cordova Bolt, Inc. where he is also the President of the family business. – April 24, 2018 National Association of Manufacturers article excerpt
Wibby Brewing (Longmont, Colorado) – Because of the Tax Cuts and Jobs Act, the brewing company was able to expand:
“We are so thankful that Congress has extended the current federal excise tax rates for another year,” said Ryan Wibby, president and brewmaster, Wibby Brewing, Longmont, Colo. “When preparing the 2020 budget, I was struggling to find the capital needed for the expansion of our growing brewery. The extension of the FET rates will free up $20,000, which will allow us to purchase the production equipment necessary to meet our projections and achieve our goals.” – Dec. 23, 2019, Wine Industry Advisor article.
Red Leg Brewing Company (Colorado Springs, Colorado) – The local brewery was able to use money saved because of the Tax Cuts And Jobs Act and put it towards hiring more people, health insurance for employees, 401(k) contributions for employees, and for production growth:
In a matter of days, Red Leg Brewing Company will tap into its next chapter.
The company announced this week it will break ground on an $8 million expansion project Friday along Garden of the Gods Road.
Todd Baldwin, president and founder of Red Leg, told News 5 the move will enable his company to increase its beer output from 2,500 barrels to 10,000.
"Our goal was always to be the craft beer of the military, to be on every military base in the world, and this new facility's going to allow us to do that," Baldwin said.
Red Leg's growth is not only tied to the product and innovative ideals. As a whole, craft brewers have also capitalized on an excise tax break included in President Trump's 2017 tax cuts, reducing what they pay the government for every barrel produced.
That relief allowed brewers to use the money elsewhere. At Red Leg, Baldwin said it paid for production growth, improvements in quality assurance and manpower.
"The last two years, we've invested more in now only our people here, but we were able to start health insurance and a 401(k) this year for our employees, which is super cool. And we were able to bring on more employees," Baldwin said. – Dec. 10, 2019, NBC Southern Colorado.
Parsonex Properties (Englewood, Colorado) -- The company is investing in new townhomes in an Opportunity Zone:
"A housing development that is adding 44 new townhomes to Grand Junction is receiving a boost on its last phase from an opportunity zone investment.
....
Parsonex Properties is a financial services company with about $300 million in assets under its management. It is based in Englewood on the Front Range.
This is the first opportunity zone investment for the company, but it has invested in other housing projects outside of the zones. Parsonex invested $2 million of its opportunity fund in this project.
“When the opportunity zone legislation came out, we saw it as a good opportunity to enter into the fund space,” Parsonex Properties President Shane Phillips said." -- February 23, 2020 Grand Junction Sentinel article
Tom and Brooke Gordon (Denver, Colorado) -- A "husband and wife development team" are planning on building 700 homes located in a opportunity Zone:
The construction crews might not avoid Elyria-Swansea much longer.
On Monday night, the Denver City Council approved a rezoning that would allow one of the neighborhood's first major development proposals. A husband-and-wife development team wants to build about 700 homes and other features on a former call-center site at 2535 East 40th Ave.
Council members Debbie Ortega, Paul López, Paul Kashmann and Rafael Espinoza voted against the proposal. Councilman Wayne New was absent.
The 14-acre project has become a test case for the historically neglected neighborhood, with a community group and a local nonprofit pushing for more concessions from the developers amid fears of higher property taxes.
In an interview, developer Tom Gordon said he and his wife, Brooke, wanted to build a "diverse mixed-use community with some focus on the arts." The project would be a mix of existing and new buildings.
The three-floor project also would include:
* Seventy affordable units for people making less than 60 percent of the area median income, about $54,000 for a family of four. The median household income in the neighborhood is about $37,000, according to city records.
* A 500-seat performance space for the Wonderbound dance company, a current tenant.
* 2,000 square feet of rent-free space for local businesses.
* 25,000 square feet for restaurants and commercial space.
* Two-plus acres of publicly accessible open space, including a playground and a public garden.
* Eight live-work art spaces at about $1 per square foot.
About 120 of the homes would be condos, and the rest would be apartments. The affordable units and open space are cemented in agreements with the city. Other aspects are addressed in a community agreement signed by the Gordons but not the residents.
"We've taken the high road the whole way on this thing," said Bruce O'Donnell, a representative for the developers.
The council delayed its consideration of the project a month ago, following a five-hour meeting, to allow for negotiations between the developers and the Globeville, Elyria-Swansea Coalition Organizing for Health and Housing Justice.
"There has never been a large-scale market-rate development in Elyria and Swansea," said organizer Nola Miguel. "I think I was shocked by how fast this is all happening amidst a huge mess of construction."
Elyria-Swansea is one of the only parts of northeast Denver where houses still sell for less than $300,000. Its residents live in the shadow of Interstate 70 and industrial pollution.
GES Coalition and other neighborhood groups ultimately rejected the proposal because the developers didn't meet their "make or break" issue, Miguel said.
They wanted the developers to contribute $200 per unit -- about $140,000 in all -- to a "property tax fund" that could ease the effects of rising property values on low-income residents. Denver's low-income neighborhoods have seen their property value assessments jump in recent years. The city recently extended some tax refunds to low-income families.
"They didn't necessarily know what they were getting into as far as, 'What's equity and how do we do that?' " Miguel said.
Gordon said his company's plan went above and beyond to provide community amenities, but he was frustrated by the tax-fund proposal.
"Those things are things that we can do to engage the community, but what we can't do is a be a guinea pig or a target for an organization that is trying to create policy for the city," he said.
The development isn't getting direct city subsidies, but may create a special taxing district to pay for some development costs. The property is in a federal opportunity zone. -- May 6, 2019 Denver Post article
InSite Development and Midas Hospitality (Lancaster, California) -- The group is building a hotel in an Opportunity Zone created by the Tax Cuts and Jobs Act:
A project to erect the first hotel along Lancaster Boulevard holds the promise of upgrading the entire downtown section of the city.
Developed as a joint venture between InSite Development in Woodland Hills and St. Louis hotel firm Midas Hospitality, the project will create a $25 million, 107-key extended-stay Residence Inn by Marriott International at 857 W. Lancaster Blvd. on the Antelope Valley's busiest thoroughfare. Construction of the four-story, 80,000-square-foot building is scheduled to begin later this year, with the hotel's opening planned for early 2021.
...
Despite the impact this project will have, Eglash said, it almost didn't happen. It was only possible because the property falls inside an "Opportunity Zone." -- August 19, 2019 San Fernando Valley Business Journal
Hotel Equities (Colorado Springs, Colorado) -- The hotel developer is bringing two hotels to the city in an Opportunity Zone created by the Tax Cuts and Jobs Act:
An Atlanta hotel developer wants to build a Courtyard by Marriott and a Residence Inn in the Colorado Springs Airport's Peak Innovation Business Park, the first hotels on airport land, according to plans made public Tuesday.
Hotel Equities hopes to start construction in January on a Courtyard of 105 to 120 rooms that would open in 2021 as well as a similar-sized Residence Inn to open by 2023 on a 6-acre parcel just south of Milton E. Proby Parkway, which loops in front of the airport passenger terminal. The company would buy that site from the city for $1 million to $1.5 million, airport officials said.
...
Hotel Equities wants to buy the property by year's end to tap federal tax benefits because the site is in a federal Opportunity Zone that covers the airport property. The Opportunity Zone program allows investors in such projects to delay paying federal income tax on investment profits until 2026. To get the maximum tax benefit from zone projects, the investments must be made this year.
Hotel Equities also is a partner in a 259-room hotel being built downtown southwest of South Tejon and Costilla streets. It will operate under Marriott's Element and SpringHill Suites brands. That $75 million project, set to open in 2021, also will receive Opportunity Zone tax benefits. The company operates a Fairfield Inn & Suites near the Air Force Academy and more than 140 other hotels in 24 states and three Canadian provinces. -- August 21, 2019 Colorado Springs Gazette article
Proximity Space Inc. (Montrose, Colorado) -- The coworking company was provided funding to expand the company's network, which is located in various Opportunity Zones created by the Tax Cuts and Jobs Act:
Montrose’s coworking space has been a first — now a second — when it comes to netting opportunity zone funding.
Proximity Space Inc. first won such funding last August, after the Colorado Office of Economic Development and International Trade (OEDIT) named it the first company to successfully place an opportunity zone investment.
The latest win came last week, when Proximity Space was given new funding from the CORI Innovation Fund to help the coworking business’ network.
“It’s a pretty neat step for Proximity to not only get their investment but their first investment,” CEO Josh Freed said.
The CORI Innovation Fund initiative is a qualified opportunity zone fund that invests in high-growth technology companies supporting job creation and revenue generation in rural communities. The Center on Rural Innovation launched this initiative in September 2019.
These CORI funds will go toward the extension of Proximity’s network.
The Proximity network has a national footprint and contains several coworking spaces located in rural areas in addition to recovering economies poised to support the growth of new businesses and entrepreneurs, Freed said.
Proximity’s Montrose location is on one of three different board areas, or census tracts, in Montrose County. Those three were part of 126 tracts in Colorado that in April 2018 won the U.S. Department of Treasury certification as Colorado opportunity zones. -- January 19, 2020 Montrose Press article
Formativ (Denver, Colorado) -- The company is building a World Trade Center Denver office building in an Opportunity Zone created by the Tax Cuts and Jobs Act:
The new World Trade Center Denver office building, a catalytic project going up in the city’s growing River North Art District, took a major step forward this week as the developer teams up with experienced national firms that own a portfolio of iconic buildings and high-end hotels, and those new partnerships close on the final parcels of land to officially start construction.
Denver-based Formativ, which co-developed the Industry office building in RiNo, told Denver Business Journal in an exclusive interview that it has named Chicago-based Golub & Co. as capital and co-development partner for the 350,000-square-foot office project. The partnership brings a firm to the table that manages some of Chicago’s most notable buildings, including Tribune Tower and the John Hancock Building. It also manages Facebook’s 750,000-square-foot office in San Francisco.
Sean Campbell, chief executive officer of Formativ, said his firm’s progressive approach to development and local knowledge of Denver paired with a company that takes a more traditional approach to the business will create a milestone project in RiNo.
“It’s definitely a nice match and we’re looking forward to working long-term with [Golub],” Campbell said.
In addition to the office building, World Trade Center Denver includes a 240,000-square-foot, 240-plus-room hotel and conference center. Formativ officials said Monday that it signed a partnership deal with Memphis, Tennessee-based Kemmons Wilson Companies — the 71-year-old firm that created the Holiday Inn brand and now operates a number of luxury properties around the globe — to co-own and develop that hospitality tower. Kemmons Wilson’s sister company, Valor Hospitality, will operate the hotel. A flag for the hotel hasn’t been determined at this point. Valor's portfolio includes Hotel Indigo in the Williamsburg neighborhood of Brooklyn in New York and Central Station, a Curio by Hilton property going up in Memphis' old train station that's being redeveloped, similar to Denver's Union Station.
The most notable change to the project since it was announced in 2016 is that the project is now located in a qualified opportunity zone, allowing investors and the development team to reap unprecedented tax benefits. -- June 26, 2019 Denver Business Journal article
Xcel Energy (Denver, Colorado) – The utility will pass tax cut savings along to customers:
Xcel Energy will pass on $20 million in federal tax savings to its natural gas customers in Colorado, with more savings on the way for electric customers.
Federal tax obligations go into the calculation that Xcel Energy and other utilities use to determine their cost of service. The Tax Cut and Jobs Act, which Congress passed in December, cut the federal corporate tax rate from 35 percent to 21 percent at the start of the year. – March 1, 2018, Denver Post article excerpt
Chipotle Mexican Grill (Headquarters in Denver and many locations statewide) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants:
With regard to the impact of the Tax Cuts and Jobs Act, Jack Hartung, Chief Financial Officer, said, “We’re pleased that the lower income tax rate from the tax law change will result in savings of approximately $40 to $50 million in 2018. We plan to invest more than one-third of these tax savings in our people, including by making all of our restaurant managers and crew eligible for a one-time cash bonus, awarding one-time stock bonuses to a broad group of staff employees, and enhancing a number of other benefits such as parental leave and short term disability, all to help position Chipotle as the employer of choice in the restaurant industry. We’re excited to share further details about these programs in the coming days.” – Feb. 6, 2018 Chipotle Mexican Grill statement excerpt
First Southwest Bank (Alamosa, Colorado) – Base wage raised to $14 per hour which will include full benefits:
While some long-standing businesses leave our rural Colorado towns, for more urban options, First Southwest Bank stands committed to growing and investing in the people of our Western communities.
As part of this commitment, starting team members at First Southwest Bank are immediately benefitting from the recent tax law changes, as the bank raises its starting wage to $14 an hour plus full benefits.
“We’re excited to take advantage of the tax reform and give the positive impact it has on First Southwest Bank right back to our team members and the rural Colorado community,” says Kent Curtis, First Southwest Bank CEO. “By being able to provide a higher living wage to our starting employees, and invest in our team, we can be a catalyst for economic growth, and reaffirm our commitment to a better quality of life in all of the rural Colorado communities our branches serve.”
The increased starting wages are effective immediately across their six branches in rural Colorado. – Jan. 22, 2018 First Southwest Bank press release
Canary LLC (Denver, Colorado) – due to tax reform, the company will hire more employees and increase capital spending:
“There are two components. One is ordering more capital equipment, which is what the expensing provision of the new tax reform bill allows us to do. And the second leg of that is hiring more people which we are furiously working on right now.”
"So what the tax reform package is allowing us to do is really dial up our capital spending even more, so we are going to try to achieve 50 percent revenue growth next year in 2018 over 2017."
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"We've got a lot of aging equipment that needs to be replaced—that money is going to be spent locally. And as our activity picks up, we're also going to need to hire more people." – CEO Dan Eberhart
FirstBank (Longmont, Colorado) -- $1,000 bonuses for full-time employees; $500 for part-time employees; base wage raised, salary increases.
Waste Management Inc. -- multiple locations in Colorado, with a total of 1,243 employees statewide -- $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt
Apple (Apple stores in Boulder, Broomfield, Colorado Springs, Denver, Littleton, Lone Tree) - $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing:
Bonuses:
Apple Inc. told employees Wednesday that it’s issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter.
The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.
Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. – Jan. 17, 2018 Bloomberg News article excerpt
Capital expenditures, etc:
Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.
Building on the initial success of the Advanced Manufacturing Fund announced last spring, Apple is increasing the size of the fund from $1 billion to $5 billion. The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas.
Apple works with over 9,000 American suppliers — large and small businesses in all 50 states — and each of Apple’s core products relies on parts or materials made in the US or provided by US-based suppliers.
Apple, which has a 40-year history in education, also plans to accelerate its efforts across the US in support of coding education as well as programs focused on Science, Technology, Engineering, Arts and Math (STEAM). – Jan. 17, 2018 Apple press release excerpts
Bank of Colorado (Fort Collins, Colorado) -- $1,000 bonuses to all full time employees:
Bank of Colorado is paying a special bonus of $1,000 to each full-time associate to share the benefit of the tax cut passed earlier this month by Congress.
President of Bank of Colorado, Shawn Osthoff said, "We feel strongly that the message should be loud and clear that this is a tax cut that will benefit all Americans." Bank of Colorado has 641 associates in Colorado and New Mexico.
Customers will also benefit from the tax cut as Bank of Colorado has raised interest rates on its Money Market accounts. – Dec. 27, 2017 Journal Advocate article excerpt
Scheels All Sports (Colorado location in Johnstown) -- $1,000 and $500 bonuses; investment in new stores, increased charitable donations:
SCHEELS is about our PEOPLE and the communities in which we live and work. As we enter 2018, the new tax reform bill offers a huge opportunity for American business and notably our employee-owned company. This new bill allows SCHEELS to:
- Invest in new stores
- Create jobs in new and existing markets
- Increase our charitable impact in our communities
- $1,000 bonus for Scheels associates working >1000 hours
- $500 bonus for Scheels associates working 500 hours
It’s opportunities like this that give our employee-owned company the ability to create a vision for steady and healthy growth in our communities. – Dec. 28, 2017 Scheels statement
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Right after the tax reform bill became law in December, leaders of Fargo-based Scheels All Sports decided employees would get some extra money, a company official said during Vice President Mike Pence's campaign-style rally here Tuesday, March 27.
"We knew we wanted to do something intentional right away," said Chief Financial Officer Michelle Killoran. "So we decided to give a tax-reform bonus to our associates."
After hearing from employees, it became clear many didn't know what tax reform was or that it had happened, she said. Company leadership responded by holding meetings to explain to employees the "positive impacts" of the reforms to them and their employer, she said. – March 27, 2018 Fargo Forum article excerpt
STERIS Corp. (Colorado location in Denver -- Synergy Health) -- $1,000 bonuses totaling $7 million for non-executive U.S. -based employees:
"Like many companies, the recent tax reform in the U.S. will result in significant additional earnings for STERIS to strategically grow our business and return value to Customers, employees and shareholders. One of our first actions on that front will be a one-time special discretionary bonus of $1,000 to all U.S. employees other than senior executives." -- Feb. 7, 2018 STERIS plc press release
AT&T -- $1,000 bonuses to 2,675 Colorado employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
FMS Bank (Fort Morgan, Colorado) – Increased 401(k) contributions.
T.J. Maxx – 17 stores in Colorado – Bonuses, increased retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities:
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Best Buy -- 26 stores in Colorado -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees will receive bonuses:
Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.
In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.
All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.
In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.
In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.
“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman. — Feb. 2 2018, Minneapolis Star Tribune
National Bank Holdings Corporation (Greenwood Village, Colorado) – $1,000 bonuses for employees making less than $50,000 (exact number receiving bonus unknown at this time):
“This move is in part a response to the recently enacted tax legislation, which is anticipated to have a positive impact on the U.S. economy.” – Dec. 27, 2017 National Bank Holdings Corporation press release
Home Depot -- 46 locations in Colorado -- Bonuses for all hourly employees, up to $1,000.
Lowe's -- 3,000+ employees at 29 stores and one distribution facility in Colorado: Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Ryder (Eight locations in Colorado) – Tax reform bonuses:
Ryder System is the latest company to give its employees a bonus as result of the new tax law.
The Miami-based fleet management company (NYSE: R) will give a one-time cash bonus to all non-incentive bonus-eligible employees of the company employed on Dec. 31, according to a Securities and Exchange Commission filing.
The bonuses, totaling about $23 million, stem from a huge tax benefit that Ryder will receive as a result of changes in the recently passed Tax Cuts and Jobs Act, which reduces federal corporate tax rates to 21 percent from 35 percent.
Ryder said it will get a one-time tax benefit of about $586 million, or $11.04 a share, for the quarter ended Dec. 31. It said the net benefit is due to the estimated impact of reduced future tax rates on the company’s deferred tax liabilities.
The Fortune 500 company had 34,500 employees at the end of 2016, and reported $1.8 billion in revenue and $11.3 billion in assets in its most recent quarter. -- Jan. 30, 2018 South Florida Business Journal article excerpt
CarMax (Locations in Colorado Springs and Boulder) – $250-$1,500 bonuses depending on length of service:
“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerpt
Walmart - Colorado employees at 89 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
Cintas (Multiple locations in Colorado) -- $1,000 bonuses for employees of at least a year $500 for employees of less than a year.
U-Haul (Multiple locations in Colorado) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Taco John’s (18 Colorado locations): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Starbucks Coffee Company (Multiple locations in Colorado) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
McDonald’s (230+ locations in Colorado) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
FedEx (Multiple locations in Colorado) – Accelerated and increased compensation; pension plan contributions:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release
Comcast (Multiple locations in Colorado) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Wells Fargo – 144 locations in Texas -- Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Note: If you know of other Colorado examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/lis
More from Americans for Tax Reform
Dems Rushing Through Small Biz Tax Paperwork Mandate in Biden Spending Bill

Congressional Democrats are sneaking through new reporting requirements that will increase tax complexity for independent contractors, small businesses, and freelancers. They have included this proposal in the 200 page manager’s amendment to President Biden’s $1.9 trillion stimulus bill. This is another attempt by the Left to exploit the COVID-19 crisis by passing unrelated policy measures long desired by progressives.
The provision in question would lower the reporting threshold to $600 or more for 1099-K reporting and eliminates the transactions threshold. Currently, one is only required to report when there is more than $20,000 in sales and more than 200 transactions in a year. The proposal also extends the 1099-K reporting to "specified electronic payment processors."
This would impact freelancers and independent contractors including freelancers compensated via PayPal, Etsy sellers, Airbnb hosts, Uber and Lyft drivers, food delivery couriers, and others participating in the sharing economy.
This provision would end up harming low- and middle-income contractors, small businesses, and freelancers, many of which have been devastated by the coronavirus pandemic. Implementing new, burdensome reporting rules will only do more damage. It is quite ironic that a provision like this may be included in the so-called “American Rescue Plan.”
The House plans to vote on the stimulus package today, so Democrats are trying to rush these provisions through with no debate or public scrutiny.
Democrats last enacted burdensome new 1099 reporting requirements in Obamacare, when they required businesses to send 1099 forms for all purchases of goods and services over $600 annually.
Soon after this provision was signed into law, the National Taxpayer Advocate raised concerns that these reporting requirements would cause “disproportionate” harm to small businesses and do little to improve tax compliance.
This provision was so unpopular that it was quickly repealed in 2011 with a bipartisan vote of 87 to 12 in the Senate and 314 to 112 in the House. The Obama administration even hailed repeal of the provision a “big win” for small businesses in a press release:
“Today, President Obama signed a law that removes the expanded ‘1099’ reporting requirement from the Affordable Care Act. This is a big win for small businesses.
The SBA and President Obama supported repealing this provision, which would have required businesses to send 1099 forms for all purchases of goods and services over $600 annually. With this bipartisan effort, we have removed a requirement that would have been an undue barrier to small business growth.”
This provision being rushed through today is eerily similar to the Obamacare reporting requirement.
We should not make the same mistakes again. Expanding reporting requirements for 1099-K receivers will harm independent contractors, small businesses, and freelancers. Increasing compliance costs and the regulatory burden on already-struggling workers and small business owners is especially alarming given they have been disproportionately harmed by the pandemic.
Photo Credit: Kentucky Democratic Party
Costly Real-Times Sales Tax Collection Proposals would Hurt Small Businesses

Massachusetts is home to the 16th worst Business Tax Climate in the United States, according to the Tax Foundation. Aside from high taxes and a poorly structured code, small businesses in Massachusetts contend with soaring rent and costly regulatory regimes. Despite all of this and after suffering from a year of economic downturn, pandemic-induced lockdowns, and new expenses, small businesses in Massachusetts face even more new fees and regulations from their state government.
Members of the Massachusetts legislature are again considering a real-time sales tax remittance requirement for retailers, which does not increase revenue for state coffers like other tax grabs, but does impose significant new costs on employers at a time when many businesses are struggling just to stay open. While this misguided proposal wouldn’t raise any new revenue, a real-time sales tax collection and remittance requirement would force businesses to create an entirely new payment system that would saddle employers with new compliance costs, further reducing the job-creating and sustaining capacity of Bay State small businesses while raising new privacy concerns for consumers.
The retail infrastructure required to fully comply with a real-time sales tax remittance mandate does not exist. Current payment processors only collect a final purchase amount and aren’t built to collect the data required to remit a sales tax instantaneously. As a result, the real-times sales tax requirement some on Beacon Hill are calling for would force businesses and financial institutions to build new systems from scratch in order to comply, all to generate no new revenue, just earlier collection. The State Tax Research Institute estimatesthat this process would cost businesses almost 1.2 billion dollars in costs.
Aside from the added costs, the real-time sales tax proposal raises significant consumer privacy and information security questions. The current sales tax collection and remittance system is already a complex web that requires coordination from multiple government agencies and stakeholders. Any new information needed to make a transaction compliant presents another point of attack for bad actors to access even more consumer information.
Forcing the nation’s first real-time sales tax requirement on employers would only serve to make Massachusetts a more costly and less hospitable place to do business and invest. The real-time sale tax proposal being advocated for in Massachusetts would inflict pain on in-state employers, with no gain for state coffers. This misguided policy would create no additional revenue for the state. It would only levy new rules and associated costs for businesses that are just beginning to recover from the adverse effects of the pandemic-driven downturn. Several state legislatures have proposed and eventually rejected instant sales tax remittance because they ultimately understood that it was an onerously expensive and unnecessary policy that brought no new revenue to the state. Massachusetts lawmakers should heed the lessons from those failed attempts.
States Must Act to Prevent the Taxation of PPP Relief Aid

The Paycheck Protection Program (PPP), created in March 2020 as part of the CARES Act, was meant to help businesses retain workers and avoiding permanent closure amid government-mandated lockdowns. PPP loans issued to businesses were forgivable and not subject to federal income tax, so long as 60% of the loans went to keeping employees on the payroll. In some states, however, employers now face the prospect of being hit with higher state taxes as a result of accepting federal relief.
Businesses like Macromatic Industrial Controls in Wisconsin used PPP loans to help keep their workers employed. With taxes due this spring, the company’s president Steve Sundlov had been raising concerns about PPP loans being taxed by the state.
“The PPP money was again presented to us as tax-free money, and those were the rules that we were give,” Sundlov said, adding that “now, it seems like the rules are changing and that’s very difficult to deal with.”
Though it had originally appeared as though Governor Tony Evers (D) was going to subject PPP relief to state taxation, after increasing pressure from the Republican-controlled Wisconsin legislature, Gov. Evers agreed last week to sign into law a bill exempting PPP loans from state income tax.
The prospect of state taxation of PPP loans that Wisconsin lawmakers rectified last week is a problem that’s not limited to Wisconsin. While it was good to see Governor Evers make the right decision, the threat of state taxation of PPP loans continues to hang over employers in many other states. Governors and legislators in a number of states still need to take action to ensure businesses are not subject to higher state taxes on account of their utilization of pandemic aid authorized under the CARES Act.
Unless state legislators in Georgia, Kentucky, Maine, and 16 other states take action soon, PPP relief aid that businesses received during the pandemic will be subject to state taxation because state lawmakers declined to exempt PPP loans as taxable income and disallowed expense deductions. The good news is that legislators in some of those states are in the process of taking such action.
Meanwhile in Maine, the Democrats who run state government seem less concerned about protecting businesses from surprise tax bills on their PPP relief aid. Gov. Janet Mills (D) introduced an executive budget on January 25, 2021 that did not exempt forgiven PPP loans from state income tax. The Governor argued that by taxing this relief aid, the state could get an additional $100 million revenue shortfall on top of the windfall of additional federal revenue that Congress is about to send.
After public backlash, Gov. Mills announced that she would look towards additional aid from the federal government to avoid taxing PPP funds, which the state is sure to get as part of the $1.9 trillion spending package now working its way through Congress.
While efforts to exempt PPP aid from state income tax are encouraging and necessary, lawmakers in many states still need to approve conformity legislation before taxes come due this spring. While Mr. Sundlov’s worries that he will “owe tens of thousands of dollars in income tax” have abated thanks to the prudent action recently taken by Wisconsin lawmakers to conform with the CARES Act’s tax exemption for pandemic relief funds, thousands of other small businesses across the U.S. still face the prospect of unexpected state tax bills. Unless lawmakers in those states act soon, some employers might have to resort to the sort of payroll reductions that PPP loans and the other liquidity enhancing provisions of the CARES Act were designed to prevent.
Photo Credit: Robert English
More from Americans for Tax Reform
Oilfield Welder on Biden's Hostility to Oil and Gas Jobs: "You have to change your whole life up because of politics."

Reporting from Watford City, North Dakota, the Fargo Forum interviewed local residents regarding President Biden’s hostility to oil and gas workers:
"I think everybody up here feels like we’re absolutely screwed," said Tara Paul, a Denver native who followed her sons to western North Dakota oil country just months before the pandemic hit.
Despite the claims of the Biden administration, workers cannot simply switch to working on solar panels. One of Tara’s sons, Shawn, shared his frustration over Biden’s lack of empathy:
For Shawn, 23, even if oil prices rebound in the next few years, the Biden climate agenda and the newly secured Democratic control in Washington look like writing on the wall for his long-term hopes in the oil business. "You build your lifestyle on these things, and you have to change your whole life up because of politics," Shawn said.
On Dec. 19, 2019, Biden said he would be willing to displace "hundreds of thousands of blue collar workers" in pursuit of a "Green New Deal."
Biden also suggested energy workers who lose their job due to his policies should learn to code.
On Dec. 30, 2019, Joe Biden said: "Anybody who can go down 300 to 3,000 feet in a mine can sure as hell learn to program as well...Give me a break! Anybody who can throw coal into a furnace can learn how to program, for god's sake!”
If you would like to read the rest of the Fargo Forum article, it can be found here.
Compilation of Personal Stories from Americans Hurt by Biden's Energy Policy

Americans for Tax Reform is collecting personal testimonials of Americans hit by President Biden's energy restrictions. (If you would like to submit a short video, please send it to Mike Mirsky at mmirsky@atr.org). Please see the examples below:
Pipeline Worker: "I've got my whole life invested in this."
Will New Hampshire Become the Next Right-to-Work State?

New Hampshire may soon join the list of 27 right-to-work states, giving private sector workers the freedom to choose whether or not they join and pay dues to a union. This would be a huge win for employees across the Granite State and a boon to the economy.
Thanks to the U.S. Supreme Court’s 2018 ruling in Janus v. AFSCME, public sector workers in New Hampshire and across the country are no longer forced to pay union dues as a condition of employment. That landmark victory for workplace freedom, however, did not apply to private sector unions. Private sector employees in states that do not have right-to-work laws in place still do not have this basic right to choose.
But now that New Hampshire is back under Republican control, there is a strong chance that things will soon change. Sen. John Reagan’s Senate Bill 61, which was recently approved by the Senate in a 13-11 vote, would prohibit collective bargaining agreements from including mandatory union dues, making New Hampshire the 28th right-to-work state. This commonsense law, if enacted, would give New Hampshire private sector workers the freedom to exercise their First Amendment right to decide to associate or not associate with an organization and give them the option to keep more of their hard-earned paychecks.
In addition, SB 61 is also smart economic policy. Scholarly research over the years has found that right-to-work states are more prosperous than forced-unionism states. The National Institute for Labor Relations Research, for example, found that the percentage growth in the number of people employed from 2009-2019 was 16.9% for right-to-work states and just 9.6% in forced unionism states.
These findings are not surprising. Right-to-work laws make states significantly more attractive to businesses looking to expand. John Boyd, founder of the Boyd Company, a business consulting firm that advises where to make job-creating investments, explained that right-to-work is a “common denominator among states attracting both aerospace and other types of advanced manufacturing.”
“I believe right-to-work, along with lower business taxes and workers compensation costs, will make New Hampshire more competitive and attractive to grow and locate a business,” said Senate Majority Leader Jeb Bradley, who is a cosponsor of the bill.
Joining Sen. Reagan and Leader Bradley as co-sponsors of SB 61 are Senate President Chuck Morse, Sen. Gary Daniels, Sen. Bill Gannon, Sen. James Gray, Sen. Harold French, Rep. Richard Marston, Rep. Carol McGuire, Rep. Alicia Lekas, and Rep. James Spillane. SB 61 has been placed at the top of House Speaker Sherman Packard’s legislative agenda and Gov. Chris Sununu, a longtime supporter of right-to-work laws, is expected to sign the bill into law if it reaches his desk.
Finally making New Hampshire a right-to-work state would be a win for all residents of the Granite State. It would give private sector employees the freedom to choose how they wish to assemble and allow them to keep more of their hard-earned paychecks, while also attracting new jobs and opportunities.
Photo Credit: James Walsh
More from Americans for Tax Reform
Biden's Quiet Tax Proposal: Banks Pay Twice

Over the past year, American banks were instrumental in supporting the survival of 51 million American jobs. The Paycheck Protection Program is currently in the middle of a successful second round as banks helped extend a lifeline to over 700,000 small businesses. Banks have been on the front lines throughout the healthcare emergency, retaining thousands of employees and remaining open to help Americans meet their financial needs. They should be applauded. But their resiliency is now a target as Democrats are preparing to tax these institutions at a time when access to affordable financial services is necessary to rebuild a prosperous economy.
President Biden consistently campaigned on reversing the Tax Cuts and Jobs Act and increasing the corporate tax rate from 21% to 28%, creating the highest corporate income tax rate in the industrialized world. For banks, S&P Global estimates a tax hike like this could cost the ten largest U.S. banks $7 billion annually.
Bloomberg reported the nation's top six banks saved $32 billion since Trump’s tax cuts. These savings helped them invest in their hundreds of thousands of employees and continue to expand access to affordable financial services and products. Wells Fargo, JPMorgan Chase, and Citigroup raised their minimum wage to $15 per hour after the tax cut. Bank of America increased hourly wages to a minimum of $20 per hour.
The Biden administration also plans on instituting a financial risk fee on banks. Democrats, including Secretary Hillary Clinton, have been pushing for this double tax since 2015. And Biden may find a likely ally in the Senate to spearhead this initiative. During Senator Amy Klobuchar's (D-Minn.) presidential campaign, she proposed a financial risk fee to pay for her “Climate Smart and Green Infrastructure” ambitions. She also chairs the Democratic Steering and Outreach Committee which helps craft Senate Democrat's policies.
The mechanics of the financial risk fee could be similar to President Obama’s plan in 2015. His administration proposed an annual seven basis point fee on the non-depository liabilities of financial institutions with assets over $50 billion. These liabilities include Federal Funds Market Repurchase Agreements, commercial paper, and bond issuances, and would directly affect 42 depository institutions with assets over $50 billion. A large institution like Bank of America, which borrows to finance its lending and market-making activities, can see an annual $540 million fee in addition to their record increase in corporate tax.
This tax risks the employment of 1.4 million bank employees, and the tens of millions of customers who rely on these banks daily, especially during the healthcare emergency. Although many small banks would be exempt, this arbitrary penalty would discourage smaller banks from taking on new customers to remain below the $50B asset threshold.
Proponents of these policies claim that taxing bank’s borrowing reduces the chance of bank failures. However, economists have shown that bank taxes like this are ineffective and have failed elsewhere.
Essentially banks could be taxed for simply being banks, serving customers, facilitating financial transactions, and providing loans to small businesses or entrepreneurs. This tax would raise the cost of financial services and punish many of the unbanked and underbanked who need access the most to affordable financial products.
Without banks' further participation in programs like PPP to meet the financial needs of Americans, small businesses could see a pullback in lending, and the economy will be slow to recover. It is inappropriate for the administration to punish the banking sector in light of the essential services they have continued to provide almost a year into the healthcare crisis. Banks should, instead, be rewarded and bolstered for their ongoing support in stimulating the American economic recovery.
Photo Credit: Steve Walser
Letter: Oklahoma Lawmakers Should Reject Price Controls

Oklahoma Lawmakers Should Reject Price Controls
In a letter to the Oklahoma Senate Appropriations Committee, Grover Norquist, president of Americans for Tax Reform, urged lawmakers to reject Senate Bill 734, which would impose price controls on prescription medication.
If implemented, SB 734 would cap the amount state-regulated commercial insurance plans could pay for prescription drugs at a reference price. “[T]his bill, which is a price control, would jeopardize innovation in the pharmaceutical industry and result in patients having less access to their medicines,” warned Norquist.
To read the full letter, click here.
February 25, 2021
To: Members of the Senate Appropriations Committee
From: Americans for Tax Reform
Re: Oppose Senate Bill 734, Price Controls on Prescription Medications
Dear Senator,
On behalf of Americans for Tax Reform (ATR) and our supporters across Oklahoma, I urge you to oppose Senate Bill 734, legislation that would cap the amount state-regulated commercial insurance plans can pay for prescription drugs at a “reference price.” If implemented, this bill, which is a price control, would jeopardize innovation in the pharmaceutical industry and result in patients having less access to their medicines.
Currently in the United States, it costs around $2.6 billion and takes approximately 10 years – which includes the six to seven-year clinical trial process the Food and Drug Administration (FDA) requires for drug approval – for a new drug to enter the market. Given this long and expensive process, it is unsurprising that less than 12 percent of drugs that begin preclinical testing make it to approval.
As such, forcefully reducing the price of prescription medications is a very shortsighted “solution.” Legislation such as SB 734 would leave pharmaceutical manufacturers with fewer resources available to invest in the next generation of lifesaving and life-improving medicines. Similarly, it would also make it more difficult for potential manufacturers to successfully launch their operations. This would result in the people of Oklahoma being left with even fewer, lower quality choices.
Buttressing this point is experience from countries with a more heavy-handed approach to healthcare policy, which has demonstrated that government intervention neither lowers costs nor increases access. Rather, it stifles development, creates shortages, and leads to fewer choices for consumers and patients.
The best thing state lawmakers can do to mitigate rising healthcare costs is embrace free market solutions, which promote the competition that spurs innovation, improves quality, increases the number of available options, and naturally keeps prices low. ATR opposes Senate Bill 734 and urges lawmakers to vote NO.
Sincerely,
Grover Norquist
President
Americans for Tax Reform
Photo Credit: Jimmy Emerson, DVM
More from Americans for Tax Reform
Pipeline Worker: "I've got my whole life invested in this."

Americans for Tax Reform is collecting personal testimonials of Americans hit by President Biden's executive actions. (If you would like to submit a short video, please send it to Mike Mirsky at mmirsky@atr.org).
Please watch this video from Jason, a member of Pipeliners Local Union 798:
“My name is Jason Jernigan, I’m 45 years old and I’m a member of Local 798, Pipeliners Union. I’ve been a pipeliner for 21 years. This is all I know how to do. The recent administration has taken my livelihood from me and expected me to get a job somewhere else. I’ve got my whole life invested in this.”
See also:
Rise of Personal Shoppers Shows Robust Competition in Same-Day Delivery Market

Coronavirus lockdowns have fueled a massive surge in online shopping, with American e-commerce growing a staggering 44 percent in 2020 and online spending representing 21.3 percent of all sales.
Brick-and-mortar retailers have responded to this demand by rethinking their business models and expanding the resources they dedicate to fulfilling digital orders. The resulting innovation and competition in the evolving same-day delivery market has expanded access to goods and services for American consumers and increased job opportunities for American workers.
Walmart now has over 170,000 “personal shoppers” dedicated to fulfilling online orders. These shoppers receive online orders, pick the items off of shelves, then prepare them for delivery to customers’ homes. These jobs start at over $13 an hour, more than Walmart’s $11 minimum wage, and approximately 40 percent of personal shoppers are existing Walmart employees looking to advance in the company.
The rise of personal shoppers expands access to goods and services for American consumers. With government-mandated lockdowns forcing the entire country into self-isolation, online delivery services have been a lifeline for Americans that need groceries, prescriptions, and other household essentials delivered directly to their door. With stores like Target and Bed Bath and Beyond adding personal shoppers to their respective workforces, consumers will have more places to shop from without leaving their homes.
Competition between companies in the same-day delivery market will also benefit consumers in the form of lower prices and greater perks. Walmart has rolled out Walmart+, a new membership service that directly competes with Amazon Prime by offering same-day delivery, as well as two-hour delivery for an additional fee. Increased competition in the same-day delivery space will only continue to benefit consumers as choices increase.
This new market also benefits American workers, especially those who saw their jobs vanish due to the pandemic. As retailers continue to amp up their online presence, new jobs will need to be filled, and plenty of Americans will be available to fill them.
Ultimately, competition is a rising tide that lifts all boats. The rapid expansion of the same-day delivery market will benefit American consumers through increased access to goods and services, lower prices, and better membership perks. American workers will benefit through increased job opportunities as demand for personal shoppers increases.
As our country attempts to recover from the economic damage inflicted by COVID-19, the evolving same-day delivery market is a welcome reminder that American innovation will always adapt to new challenges.
Photo Credit: Bev Sykes