How the Trump Republican Tax Cuts Are Helping Indiana

Indiana is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:
513,700 Indiana households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every Indiana 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.
2,410,540 Indiana 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.
106,750 Indiana 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, Indiana residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Northern Indiana Public Service Company, Duke Energy Indiana, and Indiana-Michigan Power (see below) all passed along tax reform savings to their customers in the form of lower rates.
Thanks to the tax cuts, Indiana businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
AndyMark, Inc. (Kokomo, Indiana) – This mechanical and electrical parts supplier is expanding and hiring thanks to tax reform:
Andy Moser, president and owner of AndyMark, which operates from a facility on North Washington Street and manufactures and distributes mechanical and electrical parts for the competitive robotics market, said savings from the tax cut has accelerated his plans to hire more workers.
He said the company currently employs 25 full-time workers and up to 30 part-time and seasonal workers. Now, Moser anticipates doubling his workforce in the next five to 10 years.
“I think the tax bill is going to accelerate our growth,” he said. “We want more diversity with our business and more vertical integration, which requires more staff, and the tax cut its going to accelerate all that.” – Jan. 14 2018, Kokomo Tribune article excerpt
Old National Bancorp (Evansville, Indiana) - Increased 401(k) match to 75% of the first 4% contributed into the Plan, and 50% of the next 4% contributed into the Plan, for a total maximum match of 5% (previously matched 50% of the first 6% contributed into the Plan, for a total maximum match of 3%) - Accessed August 31, 2018, American Bankers Association “Tax Reform Allows Banks to Invest in Employees and Communities” list
BWX Technologies, Inc. (Mt. Vernon, Indiana) -- Hiring more than 170 new employees because of tax reform. The company is also investing $210 million in Indiana and Ohio thanks to tax reform:
BWX Technologies, Inc., a supplier of nuclear components and fuel to the U.S. government, is hiring more than 170 new employees and further expanding its operations across three manufacturing facilities in Ohio and Indiana over the course of the next four years, investing approximately $210 million in these two states as a result of tax reform.
“Due to tax reform, we saw a favorable impact to our tax rate of about 8 to 10 percent,” said Rex Geveden, BWXT’s president and chief executive officer. “This has resulted in significant cash savings that we have used for various needs, including reinvestment of capital into our business and hiring additional employees for future growth.” -- July 22, 2019 National Association of Manufacturers Shop Floor Blog
Albanese Confectionery (Merrillville, Indiana) – Up to $2,000 bonuses annually for as long as tax reform stays in effect, expanded parental leave benefits:
Employees of Albanese Confectionery, an Indiana-based candy manufacturing company, have received up to a $2,000 Tax Reform Bonus. The bonuses were determined by an employee’s length of service but even brand-new hires received $150. The best part, this bonus will happen ANNUALLY as long as the Tax Reform Bill stays in effect. Employees can expect their ANNUAL Tax Reform Bonus every January.
“Taxes are complicated. With the new tax plan we are able to take a giant leap in investing in the things that matter. You matter. It’s just that simple.” Officer Tess Albanese said to employees during their meeting on January 16th.
Albanese Confectionery also expanded their benefits to include new programs such as paid maternity and paternity leave. – Albanese Confectionery press release
Cardinal Manufacturing Company, Inc. (Indianapolis, Indiana) -- employee raises, bonuses, and profit sharing distributions:
Cardinal is the leading manufacturer of Interior Signage in the Midwest. We are pleased
and proud to announce our small business is rewarding our (17) Team Members at this time in 2018: Profit sharing Bonuses for those enrolled in the plan, bonuses for those new employees that are not yet eligible to enroll, and an average pay increase of over $1.00 per hour, across the board, to our fantastic team. Cardinal will also use the additional funds available from the new tax cuts to invest in our Company’s growth and development. - August 13, 2018, Laura Mulligan, President of Cardinal Manufacturing Company Inc.
Blue Harbor Development (Michigan City, Indiana) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act.:
A few months ago, 113 York St. in Michigan City was a vacant, dilapidated building in the historic Elston Grove neighborhood.
Built in 1871, the two-story masonry structure served as a storage and distribution facility for the P.H. Zorn Brewing Co. It featured exposed brick, an archway, wooden beams and other 19th century characteristics, and 12,000 square feet of space.
It's been vacant since the 1970s. Not anymore.
She said the project, known collectively as The Barrelhouse, is the first Opportunity Zone investment in the area - Elston Grove was declared an Opportunity Zone in 2018.
It also fits her company's mission to create "value-added" properties, and to renovate and protect buildings with historic value in Michigan City and surrounding areas.
And the opportunity zone designation created more incentives.
Michigan City created three opportunity zones under the federal Tax Reform and Jobs Act of 2018. The goal is "to encourage economic growth and investment in designated distressed communities by providing federal income tax benefits to taxpayers who invest in business located within these zones," said Clarence Hulse, EDCMC executive director.
According to the EDCMC, benefits to developers include:
A temporary deferral on the payment of existing capital gains tax until the end of 2026, or the year the Opportunity Fund investment is sold or exchanged if under 5 years
Temporary tax deferral plus a 10 percent reduction on capital gains taxes owed if the asset is held for a period of five to seven years
An additional 5 percent reduction on capital gains taxes owed if the asset is held for a period of seven to 10 years (15 percent total)
A full tax exemption on investments provided the investor stays for 10 years or longer.
"There's a lot of excitement over this, a lot of excitement right now for what's going on here." -- June 11, 2020 The News-Dispatch article
Eli Lilly (Indianapolis, Indiana) - Opened a new research facility, plans to create 100 jobs, as well as invest $400 million in manufacturing facilities.
The latest tax reform win comes from Indiana, where pharmaceutical manufacturer Eli Lilly and Co. recently opened a new $75 million research facility in Indianapolis. The company’s CEO credited tax reform and other pro-growth policies that helped make it possible.
“Congress and this (presidential) administration have enhanced our ability to acquire and develop U.S.-born innovation,” Dave Ricks, chairman and CEO of Lilly, said in a statement. “The tax reforms they’ve adopted place U.S. companies like Lilly on a level playing field with our global peers.” - July 9, 2018, National Association Of Manufacturers Shopfloor blog excerpt
Eli Lilly and Company plans to create 100 new jobs by investing $400 million in manufacturing facilities at its Lilly Technology Center campus in Indianapolis.
The company announced they plan to invest the money in enhancements to existing manufacturing facilities used to make insulin and other diabetes medications, and initial capital investments to manufacture future medicines, according to a press release from the company.
“These investments demonstrate Lilly’s commitment to our manufacturing footprint in Indiana and the United States, and have been made possible by the tax reform measures passed by Congress in 2017,” David A. Ricks, Eli Lilly’s chairman and chief executive officer, said in a press release. "This is crucial for us to continue to advance our state’s economy and drive future investment – adding high-tech jobs and facilities that keep Indiana competitive in the global marketplace.” -- Nov. 20, 2019 The Indy Channel
TWG Development (Seymour, Indiana) -- The company is building an affordable apartment complex that will be located on a Opportunity Zone created by the Tax Cuts and Jobs Act:
A developer is taking steps to build a 54-unit apartment complex in Seymour in an effort to provide more affordable housing and attract more workers to fill available jobs at businesses.
The proposed three-story building will consist of two- and three-bedroom units and target families making an annual salary of $30,000 to $40,000, said Sam Rogers with TWG Development in Indianapolis.
Rogers provided details about the $9.7 million project, including its location, to city officials during a city council meeting Monday night.
The apartments are to be built in a vacant grassy lot along Miller Lane behind the Poynter Ford auto dealership. The property is located in Seymour's Opportunity Zone, which is a federally designated area targeting low-income areas for development. -- July 24, 2019, The Tribune Article.
Dora Hospitality Group (Indianapolis, Indiana) -- The company is bringing a new hotel that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
The new owner of the iconic King Cole building at 1 N. Meridian St. plans to turn the 104-year-old edifice into a hotel, following the lead of several other downtown building owners.
On the heels of the King Cole news came an announcement from Fishers-based Dora Hospitality Group that it's teaming up with the owner of Shapiro's Delicatessen to build a 118room, six-story Intercontinental-branded hotel on the south side of downtown at Meridian and Sycamore streets.
Details about the King Cole project are scarce, but plans filed with the city describe the project as "King Cole building hotel," and a renovation permit issued by the city notes interior demolition.
The building owner is Indy Propeo LLC, which bought the building in January from West Coast Properties LLC for $3.9 million.
Several tenants of the 11-story, 1915 building told IBJ they have either already moved out or have been asked to vacate by the building's owner.
The building owner's address is the same as the Chicago address for The Gettys Group, a hospitality-industry developer that works with more than a dozen hotel brands, including Ritz-Carlton, Marriott, Hilton Worldwide, Hyatt, Radisson and Holiday Inn.
The Gettys Group declined to comment about the King Cole project.
The hotel to be built across from Shapiro's Delicatessen by Dora and Shapiro will mark the debut of InterContinental Hotels Group's Even Hotels brand in Indianapolis.
To be completed in fall 2020, the hotel is being built on land owned by the Shapiro family. The land is part of an Opportunity Zone established by the state, a designation that will provide tax breaks to the investors.
Developers say the hotel will offer a full gym, a glass enclosed media and meeting room, a piano, and wellness amenities. It also will have an open-air bar and what it calls an "unplugged area," where guests can play board games as well as eat and drink. -- August 30, 2019 Indianapolis Business Journal article
Waypoint Residential (Jeffersonville, Indiana) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Waypoint Residential, a US-based real estate investment management firm, has unveiled plans to develop a multifamily property, dubbed Walcott Jeffersonville, in Jeffersonville, Indiana.
To be located in the Old Jeffersonville Historic District opportunity zone, the 214-unit, Class A development will feature a mix of studio, one- and two-bedroom units.The residential development will be located in Historic Downtown Jeffersonville directly across the street from the Big 4 Station Park. It will benefit from the on-going revitalisation of Jeffersonville's downtown and waterfront, which includes new restaurants, bars, boutiques and the Riverfront floating amphitheatre.Furthermore, the Big Four Bridge offers easy access to the Kentucky Center for the Performing Arts and the hot NuLu and Butchertown neighbourhoods across the river in Louisville, Kentucky.Waypoint Residential CEO Scott Lawlor said: "The Walcott Jeffersonville is our second investment in the greater Louisville MSA, and our first in Jeffersonville."The City of Jeffersonville's revitalization strategy, in the broader context of a diverse and growing economy in the MSA, presented a compelling investment opportunity. It is a deal we had under contract before the opportunity zone designation, which is an added benefit."The project will also include luxury amenities, such as a resort-style pool and a fitness centre, an Internet café, an indoor-outdoor rooftop terrace overlooking the park and river, an automated parcel system and a pet spa.Waypoint Residential chief development officer Eric Hade said: "The Walcott Jeffersonville is ideally located in the heart of the revitalization of Historic Jeffersonville with doorstep access to the dynamic, emerging live-work-play environment on the Indiana side of the Ohio River, while providing convenient access to the employment, recreational and entertainment options across the river in Louisville."The Walcott will provide a ‘best of both worlds' luxury housing solution in what we feel is one of the most exciting areas along the Ohio Riverfront."Construction of the project is targeted for completion in mid-2020.With six offices across the US, Waypoint Residential acquires and develops conventional multifamily, student housing and senior housing properties throughout the nation. -- January 24, 2019 press release
Economic Development Corp. (Michigan City, Indiana) -- The company is building a 52-unit condo building located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
If you've ever dreamed of a lakefront home on Lake Michigan, a developer is bringing more options to the market.
Washington Landing Condos is building more waterfront condos with sweeping views of Lake Michigan and a "signature restaurant" in Michigan City.
Construction of the new 100 Washington Landing condo building is expected to start this fall.
The 52-unit condo building in downtown Michigan City will stand five stories tall and will be located on the edge of Washington Park, within walking distance of the beach, marina, Washington Park Zoo and other destinations.
It will be west of the existing row of lakefront housing that flanks Trail Creek as it empties into Lake Michigan. The developers say the project's "modern, sleek and simple design maximizes the stunning lake views as the main attraction."
Jenilee Haynes Peterson, economic development manager for Economic Development Corp. Michigan City, said it will be the first new waterfront housing to be built along the Lake Michigan shoreline in Michigan City in at least a decade.
"There's a pent-up demand," she said. "They just started selling pre-sales last week, and sold the seven units they had up for presale right away."
All the units have lake views. They're all 1,000 square feet with two bedrooms and two bathrooms.
"I am excited at this level of investment for Michigan City," EDCMC Executive Director Clarence Hulse said.
"This caliber of project is definitely raising the bar and is the first of many new projects coming to Michigan City. Having progressive leadership, Opportunity Zone and creative strategies to attract investors will keep Michigan City at the forefront for new investments." -- April 10, 2019 NWI Times article
Family Express (Valparaiso, Indiana) -- Base wage raised to $11 per hour:
Valparaiso-based Family Express, which has 70 convenience stores across Indiana and is in the process of building 10 more, is bumping its starting wage to $11 an hour.
The 43-year-old convenience store chain is raising entry-level pay by $1 an hour, after pre-empting national retailers like Walmart with above-market starting wages in April 2015. Family Express said it was boosting pay because of the tax cuts that reduced the corporate tax rate from 35 percent to 21 percent and as a bid to recruit quality employees and reduce turnover.
“We feel obligated to pass on a significant portion of the tax savings to our staff," Family Express President and CEO Gus Olympidis said. -- Feb. 5 The Times of Northwest Indiana article excerpt
Hoosier Park Casino (Anderson, Indiana) - Employee bonuses:
“a company in my district, one of the larger employers, Hoosier Park Casino, all employees received a $500 bonus after the Tax Cuts & Jobs Act was announced” - June 28, 2018, Rep. Susan Brooks statement on U.S. House Floor
Cobblestone Inn and Suites (Brookville, Indiana) -- The hotel opened up in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Brookville, IN—Thursday, the groundbreaking ceremony for the Cobblestone Inn and Suites was held in Brookville on the future site, located at 9135 US 101.
Jenny Wilz, Major investor of Cobbles Stone Inn and Suites stated that the venture was all started when Tourism conducted a feasibility study for the community to see if Brookville and Franklin County could support the need for a hotel and then an opportunity zone grant became available. This is when Jenny Wilz along with her husband Mick, of Brookville, started to express their interest in investing in a hotel for the town.
Cobblestone came for a visit to Brookville in January of 2019 to look for sights. The final site was not on the original list of sites for the hotel, but it became the perfect option according to Wilz.
According to Brian Wogernese, President and CEO of Cobblestone Hotels, the Brookville location will be a 2 story, 45 room facility. The entrance will be in the center of that facility. Other amenities will include overflow parking for boats, a gift shop for forgotten items, and a bar with hot breakfast daily. Currently, the hotel is slated to open in early July of 2020. -- October 25, 2019 WRBI article
Cobblestone Inn and Suites (Brookville, Indiana) -- The hotel opened up in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Brookville, IN—Thursday, the groundbreaking ceremony for the Cobblestone Inn and Suites was held in Brookville on the future site, located at 9135 US 101.
Jenny Wilz, Major investor of Cobbles Stone Inn and Suites stated that the venture was all started when Tourism conducted a feasibility study for the community to see if Brookville and Franklin County could support the need for a hotel and then an opportunity zone grant became available. This is when Jenny Wilz along with her husband Mick, of Brookville, started to express their interest in investing in a hotel for the town.
Cobblestone came for a visit to Brookville in January of 2019 to look for sights. The final site was not on the original list of sites for the hotel, but it became the perfect option according to Wilz.
According to Brian Wogernese, President and CEO of Cobblestone Hotels, the Brookville location will be a 2 story, 45 room facility. The entrance will be in the center of that facility. Other amenities will include overflow parking for boats, a gift shop for forgotten items, and a bar with hot breakfast daily. Currently, the hotel is slated to open in early July of 2020. -- October 25, 2019 WRBI article
Quake Manufacturing (Fort Wayne, Indiana) – $1,000 bonuses, enhanced insurance benefits, gym memberships:
Quake realized there was some extra money after Trump’s tax plan took over. So he decided to give it back to his 12 employees. “I’ve managed to add long-term disability, short-term disability, dental insurance.”
Plus everyone gets a $1,000 bonus and a paid gym membership. A nice surprise on their next check. “I want to reward the guys. Guys have been working hard. A lot of guys have been putting in a lot of overtime. I just don’t see any reason not to kick back to them.” – Feb. 21 2018, Wane.com article excerpt
Northern Indiana Public Service Company (Merrillville, Indiana) – the utility requested that customers’ natural gas rates be lowered:
As a result of the newly enacted federal tax reform, NIPSCO submitted a request with the Indiana Utility Regulatory Commission (IURC) to lower its previous request to modify natural gas base rates by $26 million. The reduction means natural gas residential customers would pay nearly $2 less per month following the Commissions’ decision in the company’s natural gas rate proposal, which is expected in the second half of 2018. The average natural gas residential customer paying $50 per month is projected to see their bill go to $58.10 per month, subject to IURC approval, rather than $59.80 as originally proposed. Electric rate benefits from federal tax reform are being considered and reviewed separately. NIPSCO’s original proposal, which was made last September, is four months into a formal regulatory review process, which includes opportunities for public input and involvement. According to the IURC’s monthly residential bill comparisons, NIPSCO is currently the lowest natural gas cost provider in Indiana. -- Jan. 29 2018, Northern Indiana Public Service Company press release
Duke Energy Indiana (Plainfield, Indiana) -- the utility will pass along tax cut savings to customers:
Plainfield-based Duke Energy Indiana has reached a settlement with the Indiana Office of Utility Consumer Counselor and other parties regarding the disbursement of savings to customers from the passage of the Tax Cuts and Jobs Act. The utility says customers will receive approximately $142 million in annual savings.
The OUCC says when the legislation went into effect in January, the federal tax rate for most investor-owned utilities fell from 35 percent to 21 percent. As a result, the average residential customer will see their monthly bill reduced by about 5 percent, or $7.33, in 2018.
"The federal tax act is an opportunity for us to lower customer bills and help offset future rising costs," said Duke Energy Indiana President Melody Birmingham-Byrd. "We’ve reached an agreement to pass along tax savings embedded in our electric rates over the next two years. It’s a constructive agreement that reduces rates while still preserving our credit quality, which is important for keeping customer bills low."
Duke Energy says it began reflecting the lower federal tax rate in customers' bills earlier this year. The settlement, which included the Indiana Industrial Group and Nucor Steel, also proposes reducing base rates in September to reflect the lower tax rate. It also includes refunds of accumulated deferred taxes in 2018 and 2020. - June 28, 2018, Inside Indiana article excerpt
Indiana-Michigan Power (Fort Wayne, Indiana) – The utility will pass along tax cut savings to customers:
The Indiana Utility Regulatory Commission approved an order Wednesday allowing the Fort Wayne-based company to boost its Indiana customers’ rates about 7.3 percent, allowing it to raise $96.8 million in new revenue.
The Journal Gazette reports Indiana Michigan Power had initially sought a 20 percent rate increase to generate $263 million in new revenue.
That was reduced under a settlement between the company, Indiana’s state consumer advocate and several cities, companies and advocacy groups.
Some of the decrease was also attributed to the recent federal tax cuts. – May 31, 2018, AP article excerpt
1st Source Corporation (South Bend, Indiana) -- 10 shares of stock; base pay increases:
1st Source Corporation announces important investments in its people as a result of record performance in 2017 and new tax legislation opportunities. These new investments include the following:
- The issuance of 10 shares of 1st Source stock currently valued at $500.00 in early 2019 (which must be held for three years) to all employees who were active with the company December 31, 2017 and are also active with the company on December 31, 2018.
- An additional performance award base pay increase of $500.00 to eligible colleagues.
- A significant increase in the company's higher education tuition reimbursement program to an annual benefit of $6,000 from $3,000.
Christopher J. Murphy III, Chairman and CEO stated. "We believe in shared ownership among all our colleagues at 1st Source. We also believe the new tax act gives us additional funds to invest in the company's long term future. -- Jan. 31, 2018 1st Source Corporation
First Farmers Bank & Trust (Converse, Indiana) – minimum bonus of $750 to each full time employee; base wage will rise by $2.50 per hour:
In response to the recently passed legislation affecting corporate tax, Gene Miles, President and CEO of First Farmers Bank & Trust recently announced a new corporate wage and community support program that commits to four points of emphasis.
1. Raise the minimum hourly starting wage by $2.50 for all new FFBT employees.
2. Provide a minimum year-end bonus of $750 annually to all full time FFBT employees.
3. Invest a minimum of $250,000 annually to community development and support of local branch markets.
4. Invest a minimum of $150,000 annually to FFBT employee development and education.
“With this special opportunity, we are pleased to further our commitment to our community and to our people. Since 1885, First Farmers has prided itself in supporting the communities in which we serve and our employees are the primary reason for our corporate success and growth”, Gene Miles, President and CEO, First Farmers Bank & Trust. – Dec. 26, 2017 First Farmers Bank & Trust statement
First Merchants Corporation (Muncie, Indiana) – $1 per hour wage increase for hourly employees; $500 bonuses for full-time employees, excluding senior management; pro-rated bonus for part-time employees:
First Merchants Corporation (NASDAQ:FRME) announced today that it will raise the wage paid to hourly employees by $1 per hour as a result of the Tax Cuts and Jobs Act of 2017 signed by President Trump in Dec. 2017.
Additionally, as a reward for the company’s strong 2017 performance, all associates, excluding senior management, will receive a $500 one-time cash bonus. Part-time associates will receive a pro-rated share.
The compensation investments will impact nearly 90 percent of First Merchants’ 1,700 employees and will be in addition to the company’s existing incentive programs and annual merit increases.
“My colleagues at First Merchants provide superior service to our clients and devote themselves to the communities we serve every day,” said First Merchants President and CEO Michael C. Rechin. “We are proud to share the savings provided by the tax reform package to reward their hard work and dedication with an increase in compensation.” – Jan. 16, 2018 First Merchants Corporation press release
MainSource Financial Group (Greensburg, Indiana) – Base wage raised to $15 per hour:
MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.
Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release
Mutual Bank (Muncie, Indiana) -- $750 bonuses for all non-executive employees; hourly employees will also receive a $.50 pay raise per hour:
CEO Dave Heeter said,” When an event like this occurs, a significant consideration is determining if the increased earnings resulting from the reduction in taxes, should be shared with a company’s constituents.” Heeter continues, “In the anticipation that the change in the tax law will provide an opportunity for greater earnings moving forward, we feel that sharing a portion of those earnings with our outstanding staff is appropriate.”
In the first quarter of 2018, MutualBank will distribute a $750 one-time payment for all full-time and part-time employees except for the Executive Management Team. Additionally, all non-exempt employees will receive a $0.50 increase in their hourly wage. -- Jan. 20, 2018 MutualBank press release
Fifth Third Bancorp – 123 locations in Indiana; Nationally $1,000 bonuses for 13,500 employees and base wage raise increase to $15:
Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth. Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.
Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees.
Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.
“It is good for our communities, employees and Fifth Third Bank,” [President and CEO Greg] Carmichael said. – Dec. 20, 2017 Fifth Third press release
First Financial Bancorp -- 12 bank locations in Indiana, base wage raised to $15 per hour; $3 million charitable contribution:
First Financial Bancorp (Nasdaq: FFBC) will raise the starting wage for all new and existing hourly associates to $15 an hour effective immediately. Additionally, the bank has made a $3 million contribution to its newly established charitable foundation. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
First Financial strives to provide fair and competitive salaries and benefits to its associates. Approximately 1,335 associates are employed throughout the First Financial footprint in Ohio, Indiana and Kentucky. The increase will affect 220 of these associates. – Jan. 3, 2018 First Financial Bancorp press release
Centaur Gaming LLC (Indianapolis, Indiana) – $500 bonus:
Centaur Gaming is reinvesting some of the money it will be saving under the Tax Cuts and Jobs Act back into its employees by giving them a $500 bonus.
The president of the company, Jim Brown, announced at a meeting Wednesday morning that all full, part and seasonal employees would be receiving a one-time check for $500. The company will also be paying all taxes and the employee and company 401K portions of those bonus checks. – March 7 2018, WRTV article excerpt
FedEx (Multiple locations in Indiana) FedEx is investing $1.5 billion to expand the FedEx Express Indianapolis hub. Nationwide, FedEx committed more than $3.2 billion in wage increases, bonuses, pension funding due to the tax cuts. Pay raises, bonus increases, pension plan increases, and at least $1.5 billion in capital expenditures:
“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.
The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017 as a result of these actions.” – Jan. 26 2018, FedEx press release
OneMain Holdings, Inc. (Evansville, Indiana) – Bonuses and base wage increases:
OneMain Holdings Inc. will use part of its savings from the reduction in the federal corporate tax rate to raise its minimum wage for employees and provide a special bonus, President and CEO Jay Levine said. – Feb. 16, 2018 SNL Financial Services Daily article excerpt
Muncie Aviation Company (Muncie, Indiana) – Tax reform bonuses for all employees:
Muncie Aviation Company will pay a bonus to all employees during the first week of March, "due in part to the Trump (Tax Cuts and Jobs Act of 2017) and in part to the record economic results posted by the company for 2017," the company announced this week.
"The company believes that the favorable business climate will increase opportunities in the coming years," a release stated. A reception for the employees/owners will be held immediately after the awarding of the bonus at Merk's restaurant, which is located in Muncie Aviation's administrative building at the Delaware County Regional Airport.
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The company employs 55 full-time and eight part-time people. – March 2, 2018 Star Press article excerpts
T.J. Maxx – 23 stores in Indiana – 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
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A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
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An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
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Instituting paid parental leave for eligible Associates in the U.S.
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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
AT&T -- $1,000 bonuses to 3,888 Indiana employees; Nationwide, $1 billion increase in capital expenditures.
Apple (Apple store locations in Indianapolis and Mishawaka) -- $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.
Bank of America (Multiple locations in Indiana) -- Indiana-based employees of Bank of America will receive $1,000 bonuses.
Cintas Corporation (Multiple locations in Indiana) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.
Comcast (Multiple locations in Indiana) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Home Depot -- 24 locations in Indiana, bonuses for all hourly employees, up to $1,000
Lowe's -- 8,000 employees at 44 stores and two distribution centers in Indiana. 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.
Ryder (21 locations in Indiana) – Tax reform bonuses for employees totaling $23 million nationwide.
Starbucks Coffee Company (Multiple locations in Indiana) – $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 Indiana) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Wal-Mart – 104 locations in Indiana -- 25,000 Indiana 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 – 33 bank locations in Indiana; raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three year
Note: If you know of other Indiana 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
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