Delaware Examples of Tax Reform Good News
Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.
Below are several examples of tax reform good news in Delaware. (Additions to this list can be sent to jkartch@atr.org)
Green Recovery Technologies, LLC (New Castle, Delaware) — $1,000 bonuses for all seven employees:
"We are a startup waste-to-value biochemical company of seven that believes in the direction the country is going and that our best days are ahead of us. These tax reductions benefit our workers by providing an instant no cost wage hike. Paying the bonuses in a low tax environment was an easy decision for GRT since we know that this low cost capital is being invested in the local community where it will be spent on goods and services as well as being by employees into their retirement savings accounts.” — Kenneth Laubsch, President and CEO, Green Recovery Technologies, LLC
Delaware Supermarkets Inc. (Wilmington, Delaware) -- $150 extra bonuses to 1,000 non-management personnel.
“Our ability to provide bonuses and training to our employees demonstrates the far-reaching implications of this tax reform. We have a renewed optimism for the local and the national economy, and this important legislation better positions us for future growth.” – Christopher Kenny, CEO
“This legislation benefits those of who count on Main Street budgets for our livelihoods, and it’s a privilege to share the benefits with the men and women who work so hard at ShopRite. It makes it possible to succeed in a very competitive industry.” -- Melissa Kenny, director of sales and marketing
Navient (Wilmington, Delaware) – 98% of Navient’s 6,700 employees will receive a $1,000 bonus (approx. 6,566 bonus-eligible employees):
Crediting the new corporate tax rate recently approved by Congress, approximately 98 percent of Navient employees across the country received a $1,000 bonus just before the holidays.
Navient has approximately 6,700 employees nationwide, including more than 900 in Hanover Township, company officials say.
According to a memo from Jack Remondi, Navient president and CEO, the firm announced it will pay a $1,000 bonus to all non-officer employees.
--
Colleen Hughes, an instructional design specialist — she works behind the scenes in the training department — said co-workers “cheered and hollered” when they read their emails.
“And it came right before the holidays,” said Hughes, 33, of Dupont. “I literally started to cry. I was shocked. I have a 3-year-old and I overspent for the holidays. This really helped me out.”
As news of the $1,000 bonuses made its way through Navient, Hughes said people became emotional.
“I know I feel I’m valued that we were even considered,” Hughes said. “We all feel valued by the company — that we all are a valuable asset to the company. So much so that they recognize our talent and dedication.” -- Jan. 2, 2018 Wilkes-Barre Times Leader article excerpts
Mountaire Corporation (Millsboro, Delaware) – $1,000 or $500 bonuses based on length of service; increased 401(k) matches:
Mountaire had an amazing year in 2017. We are blessed with great people and great opportunities. Our performance is outstanding and the blessings of Jesus Christ are all around us to enjoy.
I am very encouraged that the President of the United States and the Republican Congress have reduced taxes for businesses and individuals for 2018. I am extremely excited about what this new change means to our company and all Mountaire employees.
Very soon you should see the impact of the new lower tax rate in your paychecks.
Additionally, because of this new tax reduction, I am pleased to announce that on February 2, 2018, Mountaire is going to pay a one-time discretionary bonus to hourly employees. This bonus will be subject to normal taxes and distributed to all full-time Mountaire hourly and piece rate employees as follows:
- $1,000 for all active full-time hourly and piece rate Mountaire employees with more than 180 days of employment as of January 27, 2018.
- $500 for all active full-time hourly and piece rate Mountaire employees with between 91 and 179 days of employment as of January 27, 2018.
- $500 for all active full-time hourly and piece rate Mountaire employees with between 1 and 90 days of employment as of January 27, 2018. This group of employees will receive their bonus money as soon as they have completed their first 90 days of employment.
I have also decided to make significant improvements to our 401k savings plan. Effective November 1, 2018, Mountaire’s 401k match will be increased to 100% of the first 3% invested, and 50% of the next 2% invested. And also, effective November 1, 2018 you will be given immediate vesting on 401k matching monies.
All these improvements are being done because of the Tax Reform and Tax Cut passed by the Republicans in Congress and signed into law by our President.
I am very optimistic about our performance and the future of Mountaire and our country.
May God continue bless us and guide us! -- Jan. 26, 2018 letter to employees from Ronald M. Cameron, Chairman
Delmarva Power (Newark, Delaware) – the utility will pass along tax reform savings to customers:
Tax cuts passed by Congress in December have effectively caused Delmarva Power to reduce its power rate increase request in Delaware by $26 million, the company announced on Friday. – February 9, 2018 Delaware Online excerpt
Harvard Business Services, Inc. (Lewes, Delaware) – $1,000 bonuses for all full-time employees:
“Harvard Business Services, Inc., located in Lewes, Delaware, has just announced it will join many companies nationwide and award all full-time employees with an immediate $1,000 bonus in their next pay check in order to augment their tax savings.
Mike Bell, Vice President and Director of Marketing, announced the bonus, saying, “We appreciate the great job you do, and the dedication you show our clients every day. Keep up the good work.” – Jan. 26 2018, Harvard Business Services, Inc. press release
T.J. Maxx – 3 stores in Delaware – tax reform bonuses, 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
Home Depot -- 9 locations in Delaware, bonuses for all hourly employees, up to $1,000.
Lowe's -- 1,000 employees at 10 stores in Delaware. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
AT&T -- $1,000 bonuses to 124 Delaware employees; Nationwide, $1 billion increase in capital expenditures.
Cintas Corporation (Seaford, Delaware) -- Bonuses for 38,000 employees; $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Comcast (Multiple locations in Delaware) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Delaware) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Ryder (Delaware location: Wilmington) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in Delaware) – $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.
U-Haul (Multiple locations in Delaware) – $1,200 bonuses for full-time employees, $500 for part-time employees; nationally, over 28,000 workers will receive a bonus.
Wal-Mart – 9 locations in Delaware -- Walmart employees are receiving tax reform bonuses. Nationally, base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.
Wells Fargo – 18 bank locations in Delaware; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
Bank of America (Multiple locations in Delaware) -- Delaware-based employees of Bank of America will receive $1,000 bonuses.
Apple (Apple store in Newark, Delaware) -- $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
Note: If you know of other Delaware examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
ATR Op-Ed in Townhall Urges California Pension Against Private Prison Divestment
In his op-ed for Townhall, ATR’s Ryan Goff examined the result of politically motivated divestments from CalPERS’ portfolio, finding lost revenues exceeding $3.5 billion. As demonstrated in his piece, the state’s pension is only 70% funded and the prospect of further divestment away from private prisons — potentially renewed after the recent passage of Assembly Bill 32 banning state contracts with such prisons — only stands to exacerbate a critical problem. Read the full op-ed here.
Photo Credit: Sacramento Capitol During The Drought
Buttigieg Grills Warren for Dodging the Middle Class Tax Question
Pete Buttigieg grilled Elizabeth Warren for not answering the middle class tax question during the CNN/New York Times debate on Tuesday night.
Reporter: Mayor Buttigieg, you say Senator Warren has been "evasive" about how she's going to pay for Medicare for All, what's your response?"
Buttigieg: "We saw it tonight. A yes or no answer that didn't get a yes or no answer. Look, this is why people here in the Midwest are so frustrated with Washington in general and Capitol Hill in particular. Your signature, senator, is to have a plan for everything, except this. No plan has been laid out to explain how a multi trillion dollar hole in this Medicare for All plan that Senator Warren is putting forward is supposed to get filled in."
Warren is avoiding the reality that middle-class Americans would have to pay more in taxes -- as Bernie Sanders notes is necessary -- to fund “Medicare for All.”
"Yeah, [we'd have to] raise taxes on the middle class," Sanders told a CNN reporter after the July debate.
Yesterday, ATR released a compilation video of the 17 times that Warren has dodged the question.
Warren repeatedly dodged the question in September during an interview on The Late Show with Stephen Colbert. An exasperated Colbert tried to offer advice about the "taxes that perhaps you're not mentioning."
In July, Warren got into a heated exchange with MSNBC's Chris Matthews while refusing to answer Matthews' question on middle class tax hikes. She also dodged the question during the CNN and ABC debates.
In POLITICO Jeff Greenfield noted that Warren could be holding back an admission that Medicare for All will lead to higher taxes for the middle-class because she is worried about losing voters.
Greenfield wrote:
This leaves an obvious question that will follow her through the campaign: “Bernie Sanders is frank enough to acknowledge the obvious, and then explain it. Why won’t you?” The answer may be as simple as: If you say you will raise middle class taxes, an unmeasurable but likely significant number of voters simply will not bother to wait for the rest of your explanation.
As ATR noted earlier, Medicare for All would require anywhere from $32 trillion and $36 trillion in higher taxes over the course of the next decade.
If you want to stay up-to-date on Democrats and their threats to raise taxes, visit www.atr.org/HighTaxDems.
See more:
VIDEO: 17 Times Elizabeth Warren Has Dodged the Middle Class Tax Question
VIDEO: Warren Keeps Dodging the Middle Class Tax Question
Biden: “I’m Gonna Double the Capital Gains Rate to 40%”
Tax Hike Bernie Says He’ll Tax All Income Over $29K
Video: Warren Dodges Middle Class Tax Question Again
Biden Calls for Full Repeal of Trump Tax Cuts
Biden Attacks Warren: "She's Going to Raise People's Taxes”
Video: Media Fed Up with Elizabeth Warren Tax Dodge
Biden: End "Trump's Tax Cut for The Top Tenth of One Percent"
Booker: “My plan would reverse those toxic Trump tax cuts”
Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question
Video: Warren Dodges MSNBC’s Middle Class Tax Questions
Elizabeth Warren is Still Dodging the Middle Class Tax Question
Video: 2020 Democrats Promise Higher Taxes
Biden Caught Lying about GOP Tax Cuts
Bill De Blasio: “As President, I Would Issue a Robot Tax”
Kamala Harris Calls for Ban on Plastic Straws
Elizabeth Warren's Climate Plan Calls For "Reversing" GOP Tax Cuts
Sanders: We’re Going to “Absolutely” Raise the Corporate Tax Rate
Elizabeth Warren on Corporate Tax Cuts: “I really want to see them rolled back.”
Bill de Blasio Calls for Corporate Tax Rate Hike
Amy Klobuchar: Raise the Corporate Tax Rate to 25%
Biden on capital gains tax: “We should raise the tax back to 39.6 percent”
Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August
Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts
Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts
Marianne Williamson Joins Dems Calling for TCJA Repeal
Kamala Admits Her Plan Would End Employer Insurance
“Medicare for All” is a Middle Class Tax Increase, Say Dems
Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever
Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes
Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People
Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA
VIDEO: 2020 Democrats Will Raise Your Taxes
Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts
Julian Castro: “We’re going to have to raise taxes.”
Biden and Harris: Raise the Corporate Tax Rate
Biden tweet: Ignore the fact I’ve already called for middle class tax hikes
Kamala Harris: “I Will Reverse” Trump’s Tax Cuts
Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes
Julian Castro Caught Lying about GOP Tax Cuts
NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts
Kamala Harris: I Will Repeal “That Tax Bill”
Cory Booker: “I do support” Imposing Carbon Tax on Americans
Harris: “We are Going to Repeal That Tax Bill”
Biden: I Will Raise Corporate Tax Rate to 28%
Kamala Harris Continues to Lie about Tax Cuts
Jay Inslee: “Repeal the Trump Tax Cuts”
Biden Running Ads to “Repeal Trump’s Tax Cuts.”
VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts
Here’s what happens if Dems repeal tax cuts
VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA
Kamala Harris: When I Enter Office "I Will Repeal" the TCJA
Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”
Bernie Sanders claims people would be “delighted to pay more in taxes”
Biden: Tax Cuts Will be “Gone” If I’m Elected
Kamala Harris: I Will Repeal Tax Cuts “on day one”
Biden again says capital gains tax is “Much too Low”
Biden: Capital gains tax “much too low”
VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts
Biden: “First thing I’d do is repeal those Trump tax cuts.”
Joe Biden broke his middle class tax pledge
“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses
Kamala Harris Vows Repeal of Tax Cuts “on Day One”
Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”
Biden: I Will Raise the Capital Gains Tax to 39.5%
Joe Biden said during the CNN/NYT Democratic debate that he'd double the capital gains tax rate to almost 40% from 20%.
Biden: "I would raise the capital gains tax to the highest rate of 39.5 percent, I would double it."
In September, Biden said he'd double the capital gains rate to 40%.
Since the launch of his presidential campaign, Biden has repeatedly said the capital gains tax was “too low.” Biden’s comments and his long Senate voting record mean voters should expect him to push for capital gains tax hikes if elected.
During his time in the Senate, Biden consistently voted against tax cuts on capital gains.
In 2003, Biden voted against the reduction in the capital gains rate from 20 percent to 15 percent. In 2005 and 2006, Biden voted against extending the 15 percent rate.
In 2012, then-Vice President Biden and President Obama insisted the cap gains rate revert to 20 percent.
Biden and Obama had already piled on another 3.8 percent capital gains tax hike -- the Net Income Investment Tax -- one of the many tax increases in Obamacare. The 3.8 percent tax hike took effect Jan. 1, 2013.
Increasing the capital gains tax burden would harm Americans’ ability to build a nest egg and hurt the value of their homes, farms, and businesses.
Currently, long-term capital gains are taxed at zero percent, 15 percent, or 20 percent, depending on household income level the year the gain was realized. Households subject to Obamacare’s 3.8 percent Net Income Investment Tax pay a 23.8% rate.
In August Biden called for a capital gains tax rate increase to 39.6 percent. If Biden is elected and raises the rate to his most recently stated 40 percent, the top capital gains tax rate would end up at 43.8 percent.
If you want to stay up-to-date on Democratic candidates and their threats to raise taxes, visit www.atr.org/HighTaxDems.
Elizabeth Warren Can’t Stop Dodging the Middle Class Tax Question
Elizabeth Warren dodged the middle class again during the CNN/New York Times Democratic debate, which is taking place in Otterbein, Ohio tonight.
Reporter: "Will you raise taxes on the middle class to pay for, it yes or no?"
Warren: Dodge
Reporter: "To be clear, Senator Sanders acknowledges he will raise taxes to pay for Medicare for all, will you acknowledge it too?"
Warren: Dodge
This is the 20th time that Warren has dodged the middle class tax question.
Warren is avoiding the reality that middle-class Americans would have to pay more in taxes -- as Bernie Sanders notes is necessary -- to fund “Medicare for All.”
"Yeah, [we'd have to] raise taxes on the middle class," Sanders told a CNN reporter after the July debate.
Yesterday, ATR released a compilation video of the 17 times that Warren has dodged the question.
Warren repeatedly dodged the question in September during an interview on The Late Show with Stephen Colbert. An exasperated Colbert tried to offer advice about the "taxes that perhaps you're not mentioning."
In July, Warren got into a heated exchange with MSNBC's Chris Matthews while refusing to answer Matthews' question on middle class tax hikes. She also dodged the question during the CNN and ABC debates.
In POLITICO Jeff Greenfield noted that Warren could be holding back an admission that Medicare for All will lead to higher taxes for the middle-class because she is worried about losing voters.
Greenfield wrote:
This leaves an obvious question that will follow her through the campaign: “Bernie Sanders is frank enough to acknowledge the obvious, and then explain it. Why won’t you?” The answer may be as simple as: If you say you will raise middle class taxes, an unmeasurable but likely significant number of voters simply will not bother to wait for the rest of your explanation.
As ATR noted earlier, Medicare for All would require anywhere from $32 trillion and $36 trillion in higher taxes over the course of the next decade.
If you want to stay up-to-date on Democrats and their threats to raise taxes, visit www.atr.org/HighTaxDems.
See more:
VIDEO: 17 Times Elizabeth Warren Has Dodged the Middle Class Tax Question
VIDEO: Warren Keeps Dodging the Middle Class Tax Question
Biden: “I’m Gonna Double the Capital Gains Rate to 40%”
Tax Hike Bernie Says He’ll Tax All Income Over $29K
Video: Warren Dodges Middle Class Tax Question Again
Biden Calls for Full Repeal of Trump Tax Cuts
Biden Attacks Warren: "She's Going to Raise People's Taxes”
Video: Media Fed Up with Elizabeth Warren Tax Dodge
Biden: End "Trump's Tax Cut for The Top Tenth of One Percent"
Booker: “My plan would reverse those toxic Trump tax cuts”
Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question
Video: Warren Dodges MSNBC’s Middle Class Tax Questions
Elizabeth Warren is Still Dodging the Middle Class Tax Question
Video: 2020 Democrats Promise Higher Taxes
Biden Caught Lying about GOP Tax Cuts
Bill De Blasio: “As President, I Would Issue a Robot Tax”
Kamala Harris Calls for Ban on Plastic Straws
Elizabeth Warren's Climate Plan Calls For "Reversing" GOP Tax Cuts
Sanders: We’re Going to “Absolutely” Raise the Corporate Tax Rate
Elizabeth Warren on Corporate Tax Cuts: “I really want to see them rolled back.”
Bill de Blasio Calls for Corporate Tax Rate Hike
Amy Klobuchar: Raise the Corporate Tax Rate to 25%
Biden on capital gains tax: “We should raise the tax back to 39.6 percent”
Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August
Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts
Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts
Marianne Williamson Joins Dems Calling for TCJA Repeal
Kamala Admits Her Plan Would End Employer Insurance
“Medicare for All” is a Middle Class Tax Increase, Say Dems
Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever
Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes
Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People
Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA
VIDEO: 2020 Democrats Will Raise Your Taxes
Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts
Julian Castro: “We’re going to have to raise taxes.”
Biden and Harris: Raise the Corporate Tax Rate
Biden tweet: Ignore the fact I’ve already called for middle class tax hikes
Kamala Harris: “I Will Reverse” Trump’s Tax Cuts
Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes
Julian Castro Caught Lying about GOP Tax Cuts
NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts
Kamala Harris: I Will Repeal “That Tax Bill”
Cory Booker: “I do support” Imposing Carbon Tax on Americans
Harris: “We are Going to Repeal That Tax Bill”
Biden: I Will Raise Corporate Tax Rate to 28%
Kamala Harris Continues to Lie about Tax Cuts
Jay Inslee: “Repeal the Trump Tax Cuts”
Biden Running Ads to “Repeal Trump’s Tax Cuts.”
VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts
Here’s what happens if Dems repeal tax cuts
VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA
Kamala Harris: When I Enter Office "I Will Repeal" the TCJA
Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”
Bernie Sanders claims people would be “delighted to pay more in taxes”
Biden: Tax Cuts Will be “Gone” If I’m Elected
Kamala Harris: I Will Repeal Tax Cuts “on day one”
Biden again says capital gains tax is “Much too Low”
Biden: Capital gains tax “much too low”
VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts
Biden: “First thing I’d do is repeal those Trump tax cuts.”
Joe Biden broke his middle class tax pledge
“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses
Kamala Harris Vows Repeal of Tax Cuts “on Day One”
Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”
Pelosi Drug Pricing Plan Contains 95% Manufacturer Excise Tax
House Speaker Nancy Pelosi’s drug pricing legislation, HR 3, the “Lower Drug Costs Now Act,” imposes a new excise tax on manufacturers of up to 95 percent of sales for refusing government price setting.
This 95 percent tax is imposed on the sales of a drug. In addition, it can be applied retroactively, and is imposed in addition to income taxes.
As noted by The Congressional Budget Office, this tax is used by the government to enforce price controls on manufacturers:
"If manufacturers did not enter into negotiations or agree to prices by specified dates or if they did not meet other conditions, they would be subject to an excise tax of up to 95 percent of the sales of those drugs."
CBO offers no projection on the total revenue score of this tax. They assume that a manufacturer will either comply with government price setting (which will not trigger the tax) or leave the U.S. market entirely (resulting in a zero liability as the tax is on US sales):
“CBO and JCT anticipated that manufacturers would discontinue sales in the United States if the excise tax was levied on a drug, resulting in no revenue in that case.”
So, how does this tax work?
- This tax is described in the legislation as a “Drug Manufacturer Excise Tax” under Section 102 of the legislation and is imposed “on the sale by the manufacturer, producer, or importer of any selected drug during a day.”
- This tax applies to between 25 and 250 drugs as selected by the Secretary of the Department of Health and Human Services. Eligible drugs include the 125 most expensive “Covered Part D drugs” under Sec. 1860D–2(e) of the Social Security Act, the 125 most expensive drugs in the US, and approved insulin drugs.
- The tax rate is set at 65 percent for the first 90 days of non-compliance, 75 percent for the 91st to 180th days of non-compliance, 85 percent for the next 181st and 270th days of non-compliance, and 95 percent beginning the 271st day of non-compliance.
- The tax is triggered under the following “non-compliance periods”:
- If a manufacturer is out of compliance with the selected drug publication date – defined as April 15 of a plan year that begins 2 years prior to such year – and refuses to enter into negotiations;
- If a manufacturer does not agree to the government set price – described in the bill as the “maximum set price;”
- If a manufacturer fails to provide information on domestic and foreign sales of their drugs as requested by the HHS;
- If a manufacturer fails to provide a retroactive penalty to Treasury for having higher prices than in six countries (Australia, Canada, France, Germany, Japan, and the United Kingdom). Higher price is calculated as both net average price and volume weighted price;
- If the HHS Secretary asks for renegotiation of the price of a drug and the manufacturer does not comply;
- If a manufacturer is out of compliance with the selected drug publication date – defined as April 15 of a plan year that begins 2 years prior to such year – and refuses to enter into negotiations;
- The HHS Secretary is given the authority to apply the tax to sales outside of this period “in the case of a sale which was timed for the purpose of avoiding the tax.”
- Unlike many other taxes in the code, this tax is not deductible when determining income taxes.
- This tax is problematic for a number of reasons:
- It is imposed at such a high rate that it will result in income taxes above 100 percent of income even if applied to a portion of a business’s sales.
- It imposed retroactively, rather than prospectively. Taxes are typically imposed prospectively in order to promote consistency, certainty and fairness. All taxpayers deserve to make decisions based on a reasonable interpretation of the law with the expectation that the future changes to the law will not be applied looking backwards.
- It is imposed on sales, not income. Businesses are typically taxed on their income as it allows them to deduct expenses such as wages and other employee benefits, equipment, and machinery. A tax on sales is imposed irrespective of whether a business made any money.
- It is imposed at such a high rate that it will result in income taxes above 100 percent of income even if applied to a portion of a business’s sales.
Photo Credit: Brookings Institution - Flickr
ATR Leads Coalition Opposed to Pelosi's 95% Drug Tax
ATR today released a coalition letter signed by 70 groups and activists in opposition to the Pelosi drug pricing proposal to create a 95 percent tax on pharmaceutical manufacturers.
As noted in the letter, this bill calls for a retroactive tax on sales that is imposed in addition to existing income taxes:
Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred.
The tax is used to enforce price controls on medicines that will crush innovation and distort the existing supply chain as the signers note:
“The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.”
This proposal will create significant harm to American innovation to the detriment of jobs, wages, and patients, as the letter notes:
”[The Pelosi] proposal would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.
The full letter is found here and is below:
Dear Members of Congress:
We write in opposition to the prescription drug pricing bill offered by House Speaker Nancy Pelosi that would impose an excise tax of up to a 95 percent on hundreds of prescription medicines.
In addition to this new tax, the bill imposes new government price controls that would decimate innovation and distort supply, leading to the same lack of access to the newest and best drugs for patients in other countries that impose these price controls.
Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred. No deductions would be allowed, and it would be imposed on manufacturers in addition to federal and state income taxes they must pay.
The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.
If this tax hike plan were signed into law, it would cripple the ability of manufacturers to operate and develop new medicines.
It is clear that the Pelosi plan does not represent a good faith attempt to lower drug prices. Rather, it is a proposal that would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.
We urge you to oppose the Pelosi plan that would impose price controls and a 95 percent medicine tax on the companies that develop and produce these medicines.
Sincerely,
Grover Norquist
President, Americans For Tax Reform
James L. Martin
Founder/Chairman, 60 Plus Association
Saulius “Saul” Anuzis
President, 60 Plus Association
Marty Connors
Chair, Alabama Center Right Coalition
Bob Carlstrom
President, AMAC Action
Dick Patten
President, American Business Defense Council
Phil Kerpen
President, American Commitment
Daniel Schneider
Executive Director, American Conservative Union
Steve Pociask
President/CEO, The American Consumer Institute Center for Citizen Research
Lisa B. Nelson
CEO, American Legislative Exchange Council
Michael Bowman
Vice President of Policy, ALEC Action
Dee Stewart
President, Americans for a Balanced Budget
Tom Giovanetti
President, Americans for a Strong Economy
Norm Singleton
President, Campaign for Liberty
Ryan Ellis
President, Center for a Free Economy
Andrew F. Quinlan
President, Center for Freedom & Prosperity
Jeffrey Mazzella
President, Center for Individual Freedom
Ginevra Joyce-Myers
Executive Director, Center for Innovation and Free Enterprise
Peter J. Pitts
President, Center for Medicine in the Public Interest
Olivia Grady
Senior Fellow, Center for Worker Freedom
Chuck Muth
President, Citizen Outreach
David McIntosh
President, Club for Growth
Curt Levey
President, The Committee for Justice
Iain Murray
Vice President, Competitive Enterprise Institute
James Edwards
Executive Director, Conservatives for Property Rights
Matthew Kandrach
President, Consumer Action for a Strong Economy
Fred Cyrus Roeder
Managing Director, Consumer Choice Center
Tom Schatz
President, Council for Citizens Against Government Waste
Katie McAuliffe
Executive Director, Digital Liberty
Richard Watson
Co-Chair, Florida Center Right Coalition
Adam Brandon
President, Freedomworks
George Landrith
President, Frontiers of Freedom
Grace-Marie Turner
President, Galen Institute
Naomi Lopez
Director of Healthcare Policy, Goldwater Institute
The Honorable Frank Lasee
President, The Heartland Institute
Jessica Anderson
Vice President, Heritage Action for America
Rodolfo E. Milani
Trustee, Hispanic American Center for Economic Research
Founder, Miami Freedom Forum
Mario H. Lopez
President, Hispanic Leadership Fund
Carrie Lukas
President, Independent Women’s Forum
Heather R. Higgins
CEO, Independent Women’s Voice
Merrill Matthews
Resident Scholar, Institute for Policy Innovation
Chris Ingstad
President, Iowans for Tax Relief
Sal Nuzzo
Vice President of Policy, The James Madison Institute
The Honorable Paul R LePage
Governor of Maine 2011-2019
Seton Motley
President, Less Government
Doug McCullough
Director, Lone Star Policy Institute
Mary Adams
Chair, Maine Center Right Coalition
Matthew Gagnon
CEO, The Maine Heritage Policy Center
Victoria Bucklin
President, Maine State Chapter - Parents Involved in Education
Charles Sauer
President, Market Institute
Jameson Taylor, Ph.D.
Vice President for Policy, Mississippi Center for Public Policy
The Honorable Tim Jones
Leader, Missouri Center-Right Coalition
Brent Mead
CEO, Montana Policy Institute
Pete Sepp
President, National Taxpayers Union
The Honorable Bill O'Brien
The Honorable Stephen Stepanek
Co-chairs, New Hampshire Center Right Coalition
The Honorable Beth A. O’Connor
Maine House of Representatives
The Honorable Niraj J. Antani
Ohio State Representative
Douglas Kellogg
Executive Director, Ohioans for Tax Reform
Honorable Jeff Kropf
Executive Director, Oregon Capitol Watch Foundation
Daniel Erspamer
CEO, Pelican Institute for Public Policy
Lorenzo Montanari
Executive Director, Property Rights Alliance
Paul Gessing
President, Rio Grande Foundation
James L. Setterlund
Executive Director, Shareholder Advocacy Forum
Karen Kerrigan
President and CEO, Small Business Entrepreneurship Council
David Miller & Brian Shrive
Chairs, Southwest Ohio Center-right Coalition
Tim Andrews
Executive Director, Taxpayers Protection Alliance
Judson Phillips
President, Tea Party Nation
David Balat
Director, Right on Healthcare - Texas Public Policy Foundation
Sara Croom
President, Trade Alliance to Promote Prosperity
Kevin Fuller
Executive Director, Wyoming Liberty Group
Photo Credit: AFGE - Flickr
ATR Submits Tunney Comments in Support of T-Mobile/Sprint Merger
Americans for Tax Reform sent a letter to the Department of Justice in support of the T-Mobile/Sprint merger.
Companies should be able to merge or split without the government’s blessing, and as such, the T-Mobile/Sprint merger should be able to proceed without burdensome and unnecessary intervention.
The T-Mobile/Sprint merger will enhance competition, benefit consumers and create new jobs, while helping the United States maintain its position as the global leader in innovation and technology. Mergers are also pro-competitive, and as evidenced in the airline industry, lead to lower prices for consumers.
You can read the full letter below and linked to here.
--
October 10, 2019
Scott Scheele
Chief, Telecommunications and Broadband Section
Antitrust Division, U.S. Department of Justice
450 Fifth Street, N.W., Suite 700
Washington, D.C. 20530
Re: United States of America et al. v. Deutsche Telekom AG et al.; Case 1:19-cv-02232
Dear Mr. Scheele:
The T-Mobile–Sprint merger will facilitate healthy broadband competition, benefit Americans and help close the digital divide. Companies should be able to merge or split without government permission, and doom and gloom rhetoric should not stand in the way of innovation and job creation. For these reasons, I urge the Department of Justice to approve the merger.
By combining T-Mobile and Sprint into one company, the New T-Mobile will serve as a stronger competitor to the leading wireless companies. According to data from Strategy Analytics, the new company will have 126.2 million subscribers, allowing it to compete more fully with Verizon and AT&T, which each have approximately 150.5 and 141.6 million subscribers.[1]
Increased competition would incentivize these carriers to invest more in their networks, deploy 5G technology, develop new services and products, and offer competitive pricing.
The merger will lead to lower prices. T-Mobile and Sprint have a consistent historical record of providing innovative services at lower prices. The companies have made considerable voluntary commitments for their new network, including pledging to create a 5G network that covers 99 percent of Americans within six years[2] and to not raise prices for the next three years.[3]
Mergers are signs of healthy competition.[4] For example, within the airline industry, mergers have proven to be pro-competitive. Following recent airline mergers, ticket prices for Americans have decreased overall.[5] The New T-Mobile will have the same impact on the wireless industry.
Americans – particularly those in rural areas – stand to benefit from the combination in myriad ways, including shrinking the digital divide, rapid 5G deployment, and job creation across the nation. Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota have formally supported the consent decree. Leaders from Utah[6], Mississippi[7], the Navajo Nation[8], and other states have also shown their support.
T-Mobile and Sprint have committed to deploy a 5G network that will cover almost the entire country, with 97 percent of the United States population and 85 percent of rural America covered within three years.[9] These commitments will transform the lives of millions of Americans – many of whom reside in states that support the merger – who lack reliable internet access.
The T-Mobile–Sprint merger will also create jobs across the United States. The companies have pledged to create 12,400 jobs in small towns and rural America by 2021, create 7,500 customer care jobs by 2024, and open 600 new retail locations across the United States.[10]
This will bring life to many rural or underserved communities. As Navajo Nation President Jonathan Nez wrote in a letter to the Federal Communications Commission and Department of Justice, a post-merger T-Mobile will be “essential to [the Navajo Nation’s] economic recovery.”[11]
In short, the T-Mobile–Sprint merger will lead to increased broadband competition, greater connectivity, and economic growth.
I urge the Department of Justice to support free-market values and encourage you to approve the creation of the New T-Mobile. If you should have any questions or comments, please contact me or Katie McAuliffe by phone, 202-785-0266, or email, kmcauliffe@atr.org.
Onward,
Grover Norquist
________________________________
[1] Rani Molla, “A merged T-Mobile and Sprint will still be smaller than AT&T or Verizon,” Vox, April 30, 2018, https://www.vox.com/2018/4/30/17300652/tmobile-sprint-att-verizon-merger-wireless-subscriber-chart.
[2] “Re: Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer
Control of Licenses and Authorizations; WT Docket No. 18-197,” Federal Communications Commission, May 20, 2019, https://ecfsapi.fcc.gov/file/10520302189557/Redacted%20FCC%20Commitments%20Ex%20Parte%20(05.20.2019).pdf.
[3] John Legere, “New T-Mobile: Lower Prices and Better Service. Period.” NewTmobile.com, March 20, 2019, https://www.t-mobile.com/news/new-t-mobile-lower-prices-better-service.
[4] Patrick Hedger, “Will T-Mobile/Sprint Merger Increase Prices?”, Competitive Enterprise Institute, August 21, 2019, https://cei.org/blog/will-t-mobilesprint-merger-increase-prices.
[5] Dennis Carlton et. al, “Are legacy airline mergers pro- or anti-competitive? Evidence from recent U.S. airline mergers,” International Journal of Industrial Organization 63 (2019): 58-95.
[6] Utah Office of the Attorney General, “Utah Attorney General Reyes: The T-Mobile/Sprint Merger Will Benefit Rural Utah,” Utah Office of the Attorney General, August 9, 2019, https://attorneygeneral.utah.gov/t-mobile-sprint-merger-proceeding/.
[7] Mississippi Office of the Attorney General, “AG HOOD SETTLES CONCERNS ON T-MOBILE-SPRINT MERGER, INCREASES SERVICES AVAILABLE FOR MISSISSIPPIANS,” Mississippi Office of the Attorney General, October 9, 2019, https://www.ago.state.ms.us/releases/ag-hood-settles-concerns-on-t-mobile-sprint-merger-increases-services-available-for-mississippians/.
[8] Jonathan Nez to Federal Communications Commission and Department of Justice, August 28, 2019, https://ecfsapi.fcc.gov/file/10907790307322/Navajo%20Nation%20merger%20support.pdf.
[9] “Re: Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer
Control of Licenses and Authorizations; WT Docket No. 18-197,” May 20, 2019.
[10] T-Mobile and Sprint, “Creating Thousands of Jobs from Day One,” NewTMobile.com, https://newtmobile.com/our-plan-to-create-jobs/.
[11] Jonathan Nez to Federal Communications Commission and Department of Justice, August 28, 2019.
Photo Credit: Mike Mozart
Ted Gradel Makes “No New Taxes Pledge” in IL-14 Race
Americans for Tax Reform (ATR) congratulates IL-14 candidate Ted Gradel for signing the Taxpayer Protection Pledge, which is a written commitment to the people of Illinois to oppose higher income taxes.
Gradel joins Rep. Shimkus, Rep. Kinzinger, and Rep. LaHood in making this commitment to Illinois taxpayers.
“The American people are tired of the tax-and-spend policies coming from Washington and they are looking for solutions that create jobs, cut government spending, and grow the economy. Signing the Taxpayer Protection Pledge and holding the line on taxes is the first step in that process,” said Grover Norquist, President of Americans for Tax Reform.
Candidates running for public office like to say they will not raise taxes, but often turn their backs on the taxpayer once elected. The idea of the Taxpayer Protection Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing. It is offered to every candidate for state and federal office and to all incumbents. Nearly 1,400 elected officials have signed the Pledge.
“We are ecstatic about Mr. Gradel’s commitment to the taxpayers of Illinois. I challenge all candidates for Illinois’ 14th Congressional District to make the same commitment to taxpayers by signing the Taxpayer Protection Pledge today,” continued Norquist.
Photo Credit: Facebook
VIDEO: 17 Times Elizabeth Warren Has Dodged the Middle Class Tax Question
Americans for Tax Reform today released a video compilation of the 17 times Elizabeth Warren has dodged the middle class tax question.
Warren has said on multiple occasions that she is “with Bernie” on Medicare for All, but refuses to answer if middle class taxes will go up under Medicare for All, as Bernie Sanders has openly admitted.
"Elizabeth Warren won’t admit the obvious. She will impose broad-based tax hikes on the middle class,” said Americans for Tax Reform president Grover Norquist.
If you want to stay up-to-date on Democrats and their threats to raise taxes, visit www.atr.org/HighTaxDems.
See more:
VIDEO: Warren Keeps Dodging the Middle Class Tax Question
Biden: “I’m Gonna Double the Capital Gains Rate to 40%”
Tax Hike Bernie Says He’ll Tax All Income Over $29K
Video: Warren Dodges Middle Class Tax Question Again
Biden Calls for Full Repeal of Trump Tax Cuts
Biden Attacks Warren: "She's Going to Raise People's Taxes”
Video: Media Fed Up with Elizabeth Warren Tax Dodge
Biden: End "Trump's Tax Cut for The Top Tenth of One Percent"
Booker: “My plan would reverse those toxic Trump tax cuts”
Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question
Video: Warren Dodges MSNBC’s Middle Class Tax Questions
Elizabeth Warren is Still Dodging the Middle Class Tax Question
Video: 2020 Democrats Promise Higher Taxes
Biden Caught Lying about GOP Tax Cuts
Bill De Blasio: “As President, I Would Issue a Robot Tax”
Kamala Harris Calls for Ban on Plastic Straws
Elizabeth Warren's Climate Plan Calls For "Reversing" GOP Tax Cuts
Sanders: We’re Going to “Absolutely” Raise the Corporate Tax Rate
Elizabeth Warren on Corporate Tax Cuts: “I really want to see them rolled back.”
Bill de Blasio Calls for Corporate Tax Rate Hike
Amy Klobuchar: Raise the Corporate Tax Rate to 25%
Biden on capital gains tax: “We should raise the tax back to 39.6 percent”
Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August
Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts
Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts
Marianne Williamson Joins Dems Calling for TCJA Repeal
Kamala Admits Her Plan Would End Employer Insurance
“Medicare for All” is a Middle Class Tax Increase, Say Dems
Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever
Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes
Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People
Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA
VIDEO: 2020 Democrats Will Raise Your Taxes
Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts
Julian Castro: “We’re going to have to raise taxes.”
Biden and Harris: Raise the Corporate Tax Rate
Biden tweet: Ignore the fact I’ve already called for middle class tax hikes
Kamala Harris: “I Will Reverse” Trump’s Tax Cuts
Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes
Julian Castro Caught Lying about GOP Tax Cuts
NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts
Kamala Harris: I Will Repeal “That Tax Bill”
Cory Booker: “I do support” Imposing Carbon Tax on Americans
Harris: “We are Going to Repeal That Tax Bill”
Biden: I Will Raise Corporate Tax Rate to 28%
Kamala Harris Continues to Lie about Tax Cuts
Jay Inslee: “Repeal the Trump Tax Cuts”
Biden Running Ads to “Repeal Trump’s Tax Cuts.”
VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts
Here’s what happens if Dems repeal tax cuts
VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA
Kamala Harris: When I Enter Office "I Will Repeal" the TCJA
Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”
Bernie Sanders claims people would be “delighted to pay more in taxes”
Biden: Tax Cuts Will be “Gone” If I’m Elected
Kamala Harris: I Will Repeal Tax Cuts “on day one”
Biden again says capital gains tax is “Much too Low”
Biden: Capital gains tax “much too low”
VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts
Biden: “First thing I’d do is repeal those Trump tax cuts.”
Joe Biden broke his middle class tax pledge
“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses
Kamala Harris Vows Repeal of Tax Cuts “on Day One”
Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”
Trump's New Executive Orders Make Federal Agencies More Transparent
President Donald Trump recently signed two executive orders (EO) that are an important step towards making government agencies transparent and accountable to the American taxpayer.
Trump’s “Improved Agency Guidance Documents” EO requires agencies to put guidance documents on an easily searchable website. Trump’s “Transparency and Fairness” EO prohibits federal agencies from enforcing rules that have not been made public in advance. Taken together, these actions are imperative in protecting Americans from bureaucratic abuse.
The Obama Administration was a nightmare for taxpayers. This maxim is especially true on the regulatory front, where federal agencies imposed thousands of costly mandates on taxpayers through a flurry of blogs, letters, brochures, and the like. These “guidance” documents are a way for federal agencies to bypass normal regulatory process, including public comments and cost-benefit analysis.
Bureaucratic abuse of American taxpayers via guidance documents was a commonplace activity in the Obama Administration. Here are four examples:
- In 2011, Obama’s Department of Interior refused to renew a permit for Drakes Bay Oyster Company, a family owned-and-operated oyster farm that had operated in California for over 5 decades. The DOI used doctored data to deny renewal, arguing that courts didn’t have the jurisdiction to even hear the case. After three years of costly litigation, Obama’s DOI was unfortunately successful in its quest to shutter another small business.
- In 2013, Wyoming taxpayer Andy Johnson built a bond for his daughters’ horses in his backyard, working with state engineers to ensure that the pond was environmentally friendly and ecologically beneficial. In 2014, Obama’s Environmental Protection Agency bureaucrats swarmed the Johnson family and threatened to hit them with a $20 million fine if they didn’t destroy their pond. The EPA only backed down after the left-wing New York Times published a cover story on how abusively the agency was treating the Johnson family.
- In 2015, a Department of Labor blog post declared that many independent contractors should be classified as full-time employees. This new “guidance” blindsided thousands of small businesses all across the country, all of whom were denied the opportunity to offer any input on the guidance.
- Finally, the Army Corps of Engineers prevented the growth of a small business in Alaska by deeming that permafrost was a “navigable water of the United States.” Richard Schok, hoping to expand his small, family-owned pipe fabrication business, purchased a plot of land with traditional wetlands in Fairbanks. The Corps cited an illegal guidance document known as the “Alaska Supplement” to argue that the wetlands AND permafrost were subject to the agency’s Clean Water Act jurisdiction. The courts have repeatedly upheld the government’s decision.
All three of these examples of regulatory abuse share a common thread — overzealous bureaucrats used off-the-books guidance documents to intimidate, threaten, and harass American small businesses. The American people should not be bound by murky “guidance documents” that they do not have the opportunity to influence via public comment, and agencies should not be allowed to use these documents to decimate American families and small businesses. Trump’s EO is an important step towards stopping the regulatory abuse of American taxpayers.
Photo Credit: Gage Skidmore
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