How the Trump Republican Tax Cuts Are Helping Minnesota

Posted by John Kartch on Sunday, June 27th, 2021, 1:55 PM PERMALINK Follow @JohnKartch

Joe Biden and Kamala Harris have threatened numerous times to repeal the Tax Cuts and Jobs Act on "Day One." But Minnesota is benefiting greatly from the tax cuts enacted by congressional Republicans and President Trump:

68,060 Minnesota households are no longer stuck paying the much-loathed individual mandate tax, thanks to the TCJA's elimination of this tax. 80% of Minnesota households hit with this tax made less than $50,000 per year. Be warned, Joe Biden wants to bring this tax back from the dead, one of the many reasons Biden can't be trusted on taxes.

412,660 Minnesota households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Minnesota congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.

1,788,710 Minnesota 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.

Corporate tax cuts led to utility rate relief: As a direct result of the TCJA’s corporate tax rate cut, Minnesota residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, at least four Minnesota utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Minnesota businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Industrial Weldors & Machinists (Duluth, Minnesota) - Investing in employee pensions, hiring new employees:

“This is an American success story of generations,” Pence said of IWM, a third-generation family business that gets 70 percent of its work by rebuilding massive rock crushers used to extract taconite iron ore on the Iron Range.

Trump tax cuts helped the business and its employees, Pence said — including thousands of dollars in investments by the company into IWM employee pensions earlier this year.

“That’s what it’s all about,” Pence said.

It was an easy fact to check after the vice president’s remarks. All four sibling owners of the company were on hand — Dawn Bergh and her brothers Rick, Rob and Randy Abernethy. Bergh confirmed the pension investments for the company’s 32 employees.

“The boilermakers’ pension is in the toilet,” Bergh said. “They’re worried about it. We wanted to give them something that would keep them around. It’s really hard to get employees. We’re hiring right now for both a welder and a machinist.” - August 8, 2018, Twin Cities Pioneer Press article excerpt

3M Company (Maplewood, Minnesota) – the company increased employee pension contributions by $600 million:

3M said its tax rate under the new "Tax Cuts and Jobs Act" will fall to 20 percent to 22 percent in 2018, down from a prior rate of 26 percent to 27 percent. Executives said they will use the savings to boost returns for shareholders, increase pension reserves and to invest in the company. – Jan. 25, 2018 Star Tribune article excerpt

In 2017, free cash flow conversion was impacted by enactment of the TCJA, along with an additional U.S. pension contribution of $600 million that 3M made following the signing of tax reform. – 3M Annual Report for the fiscal year ending December 31, 2018

Priority Courier Experts (St. Paul, Minnesota) – tax reform bonuses were given on Jan. 2, 2018 to employees; further, employees will receive another $500 bonus in 2018 on the anniversary of their hire date:

Priority Courier Experts paid a “TRUMP BUMP” to each of its 80 employees on their January 2nd, 2018 paycheck. We also expanded the “TRUMP BUMP” to pay each employee a $500 bonus on their hire anniversary date in 2018, and our hope for the future is to make the “TRUMP BUMP” Bonus permanent. – Steve Cossack, Founder/CEO, Priority Courier Experts

Circuit Interruption Technology Inc. -- CIT Relay & Switch (Rogers, Minnesota) – hiring of new employees, growing the staff by 10 percent:

Circuit Interruption Technology Inc. dba CIT Relay & Switch manufactures and distributes electromechanical relays and switches to the electronics, security, HVAC, appliance and automotive industries. Employees were notified just before Christmas of one extra week pay added to their final year end check as a result of the new tax reform measure. Due to the positive atmosphere created by the passage of the tax bill Company profit sharing combined with normal 401K contributions amounted to an additional 5% per employee for 2017. CIT has added 10% to our staff thus far in January 2018 and more additions are expected. – Rick Hampton, CIT Relay & Switch

Albert Lea Public Warehouse (Albert Lea, Minnesota) – $2,000 bonuses for all 12 employees:

Albert Lea business leaders said the recently passed tax bill is helping them invest in their organizations.

The tax bill passed in December cut the top federal tax rate to 21 percent from 35 percent, likely putting billions of dollars in the pockets of major Minnesota companies.

Albert Lea Public Warehouse Owner Al Larson gave each of his 12 employees a $2,000 bonus, which he said would not have been possible without reduced rates. He said he decided to pay the bonuses in January to help the workers pay off costs incurred during the Christmas season.

“I just distributed it back to them,” he said.

In addition to bonuses, Larson is installing two roofs and investing in new dock levelers.

Larson said he prefers investing company revenue locally instead of contributing more of a percentage to the federal government. – Jan. 30 Albert Lea Tribune article

CenterPoint Energy (Houston, Texas) – The utility is passing along tax savings to customers:

The Minnesota Public Utilities Commission (Commission) ordered Minnesota’s investor-owned utilities to return approximately $200 million in annual benefits reflecting lower corporate tax rates resulting from the federal 2017 Tax Cut and Jobs Act.

This $200 million in annual benefits includes the decisions made today in this current proceeding relating to accounting and taxes; the recent decisions made for CenterPoint Energy (approximately $21.3 million) and Minnesota Power (approximately $18.7 million) in their general rate cases; and a pending decision regarding Minnesota Energy Resources Corporation (currently estimated to be approximately $5.2 million) in its general rate case, which is scheduled to be taken up by the Commission in November of this year.

With respect to each regulated utility, the Commission acted to ensure that each utility’s rates reflect the new, lower federal income tax rates in the cost of providing service. - August 9, 2018 Minnesota Public Utilities Commission statement

Minnesota Power (Duluth, Minnesota) – The utility is passing along tax savings to customers:

Minnesota Energy (Rosemount, Minnesota) – The utility is passing along tax savings to customers:

Xcel Energy (Minneapolis, Minnesota) – The utility is passing along tax savings to customers:

Xcel Energy’s $136 million windfall from last year’s federal tax act will be passed directly to its Minnesota customers through refunds, state utility regulators ruled Thursday.

Customers of Minnesota’s other investor-owned utilities will also receive refunds — or smaller rate increases — due to the 2017 tax law, which slashed the U.S. corporate income tax rate from 35 percent to 21 percent.

Xcel’s average residential electricity customer — someone who pays $85 to $90 per month — will get a refund of about $45 as a one-time bill credit. The company’s average residential gas customer — who pays around $48 a month — will get a one-time bill credit of about $8. Xcel said it expects the refunds will be made by year’s end. - August 11, 2018 Minneapolis Star Tribune article

Aldi - St. Paul (St. Paul, Minnesota) -- Aldi is building a new location in an Opportunity Zone created by the Tax Cuts and Jobs Act:

As director of St. Paul's Frogtown Neighborhood Association, Caty Royce returned from a policy summit in Chicago last year more alarmed than hopeful about the opportunities in "Opportunity Zones."

The federally authorized tax shelters allow investors to avoid paying capital gains taxes for up to 10 years if they funnel their profits into new real estate development within low-income census tracts.

"For me it was this huge red flag for any neighborhood along the Green Line, particularly for Frogtown, Rondo and Hamline," said Royce.

Critics worry that in poor neighborhoods, national investors will be drawn to projects that low-income residents can't afford, such as luxury housing. They'll buy up cheap real estate, tear it down and put up something more expensive.

But on Thursday, city officials and private developers held a groundbreaking aimed, in part, at proving the opposite.

St. Paul's first two Opportunity Zone projects are under construction near Phalen Boulevard and Clarence Street, much to the delight of some neighborhood advocates.

Within months, the 2.5-acre site will be home to a new Aldi grocery and the Entira Family Clinics, two new "anchor" tenants for the Phalen Village area, which sits in an Opportunity Zone. Both businesses are expected to open in late 2019. -- April 12, 2019 St. Paul Pioneer Press article

Koch Companies Inc. (Minneapolis, Minnesota) – increased driver wages; increased sign-on bonuses:

Raised driver pay to 41 cents to 45 cents per mile and the maximum sign-on bonus to $7,000 from $5,000 prior to late December.

“Rate increases and benefits from the recent tax law reform have allowed us to re-evaluate our current driver pay to make sure we are putting money back in the pockets of our greatest asset — the driver,” CEO Randy Koch said – Feb. 12 2018, Transport Topics article excerpt

Grand Rounds Brewing Co. (Rochester, Minnesota) – Because of the Tax Cuts and Jobs Act, the brewery was able to hire a new employee as well as invest in research and development:

“We are really a true industry that’s growing in the state of Minnesota, not only across the country, but Minnesota’s really got a lot of craft brewers,” said Tessa Leung, CEO of Grand Rounds Brewing Co. in Rochester.

…

Grand Rounds was able to invest in the research and development of their beers, update equipment and hire another brewer, but the tax increase will mean making adjustments.

“I wish we had, you know, the ability to double our prices and have nobody say anything about it, or take a vote on it, but people vote with their dollars, and they vote with where they’re at,” Leung said. – Dec. 5, 2019, KAAL 6 News.

Landmark Development (Duluth, Minnesota) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Downtown Duluth's skyline will be getting a couple of splashes of modern architecture soon.

Developers are working to figure out a demolition and construction schedule for a glassy, 15-story apartment building along the city's main downtown thoroughfare at 333 E. Superior St.

The $75 million project, which city officials said will help address a shortage of quality market-rate housing by adding 204 modern apartments, will rise near a $675 million, 14-story facility that Duluth-based Essentia Health is building. Nearby St. Lukes Hospital also is planning nearly $300 million in longer-term construction.

They are significant changes to the downtown skyline of a once-stagnant industrial city.

These projects that we are seeing now are once in a generation, and they're all happening at the same time, said Duluth Mayor Emily Larson. Its just tremendously exciting.

The apartment building, dubbed the Lakeview, will sit next to the Sheraton hotel and will feature units with floor-to-ceiling glass, wood floors and interior balconies so residents can enjoy Lake Superior views in all kinds of weather, said Brian Forcier, managing partner of Titanium Partners in Duluth, one of three developers on the project.

Plans for the bottom floor call for 19,000 square feet of retail space, including a grocery store an amenity that community leaders have been seeking for years. The second floor will have space for medical private-practice offices, Forcier said.

The project will replace the Voyageur Lakewalk Inn and a couple of other vacant buildings.

The developers, including Landmark Development of Madison, Wis., and Gerald Fogelson of Chicago, are taking advantage of a new federal Opportunity Zone program, which allows reinvestment of capital gains from other projects into properties in areas designated as economically distressed.

Larson said it is the single largest private investment in downtown Duluth's history for a residential building and a significant outside investment. She expects more outside investors to take an interest in Duluth in the next few years.

The city also agreed to pitch in $6.2 million in tax-increment financing for the apartment building, using the increased property taxes the development will generate to pay for infrastructure over the course of 25 years.

The building does nothing to help fill a shortage of quality low-income housing in the city, though. City leaders faced criticism for giving tax incentives to benefit high-wage earners.

We have a housing need across multiple spectrums and multiple affordability levels, there's no question about it, Larson said, adding that leaders can work on affordable housing while they're also working on market-rate housing.

Across the road, Essentia Health's new Vision Northland project will include a new St. Mary's Medical Center plus a clinic building and outpatient surgery center.

Construction is expected to begin later this year and finish in 2022.

And at nearby St. Luke's, officials are planning three phases of upgrades, with the most skyline-changing construction planned for about seven years out, said Vice President of Support Services Mike Boeselager.

At that time phase three of the project an inpatient tower would be built atop other buildings, for a total of 11 stories. Before that, projects will include relocating the emergency department and tripling its capacity, as well as expanding outpatient services.

Both medical facilities are getting state-backed bond financing for the projects. -- Jan. 21, 2019 Star-Tribune article

NAI Legacy (Minneapolis, Minnesota) -- The company built an apartment complex that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Call it planning ahead. But when the Tax Cuts and Jobs Act of 2017 unveiled the Opportunity Zone program, officials with Minneapolis’ NAI Legacy saw potential. And the firm acted on that potential.

Duane Lund, chief executive officer of NAI Legacy, said that he and other executives at the Twin Cities commercial real estate firm looked hard at Opportunity Zone legislation way back in the summer of 2018. They studied what Opportunity Zones could mean for NAI Legacy’s business model.

And that foresight? It’s paid off. Since launching its Opportunity Zone program, NAI Legacy has completed four Opportunity Zone investments totaling about $50 million.

“We educated ourselves on the program from the business side,” Lund said. “We surrounded ourselves with law firms and accounting firms that were diving deep into it, too. We’ve since given many of the investors in our program comfort with the assets we’ve targeted.”

One of those assets? Birdtown Flats, a new luxury apartment building in the Minneapolis suburb of Robbinsdale. This apartment complex opened for initial occupancy in February of 2020, and is located near downtown Robbinsdale.

Birdtown Flats includes 152 units and features amenities that include a rooftop deck, fitness center, business center, common area, underground heated parking, dog walk and bike-storage area.

......

The results bear this out. Lund said that Birdtown Flats is already nearly 70 percent occupied. -- April 3, 2020 RE Journals article

Entira Family Clinics (St. Paul Minnesota) -- The company is moving to an Opportunity Zone created by the Tax Cuts and Jobs Act:

St. Paul's first two Opportunity Zone projects are under construction near Phalen Boulevard and Clarence Street, much to the delight of some neighborhood advocates.

Stoneleigh Companies LLC (St. Paul, Minnesota) -- The company is building a apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Stoneleigh Companies LLC announces the acquisition of 10.71 acres of land planned for the construction of the 242-unit Waterford Bay Apartments located in the Saint Paul Opportunity Zone segment. Waterford Bay is one of the first Opportunity Zone projects in St. Paul.

Waterford Bay will offer luxury apartments in a prime location on the Mississippi River. The development aims to leverage the natural aesthetics of the Mississippi River Valley and nearby downtown Saint Paul into an attractive housing community through connectivity and integration of public/private spaces. The development is planning public access to the river with the addition of a kayak/small boat launch and expanding the regional bike/walking path trail system through the site. A portion of the land will be dedicated to the city for park space along the riverfront, accessible to the public by the extension of the bike/walking path. -- July 23, 2019 Cantify Investment News article

Loon Liquor (Northfield, Minnesota) – Because of the Tax Cuts and Jobs Act, the business was able to reinvest in the community and buy more equipment:

Mark Schiller of Loon Liquor in Northfield also that the tax break has enabled his distillery to expand its business dramatically, which he's reinvested in the local agriculture community and other local businesses. If the tax break goes away, he says it would force him to cut back planned investments significantly.

"This tax break enabled us to invest more in local agriculture, more in our inventory, more in barrel aging our spirits, which is important for future profitability, and more in equipment," he said. "If it goes away, that will dramatically impede our business growth or our ability to invest in growth." – Faribault Daily News

U.S. Bancorp (Minneapolis, Minnesota) – Pay increases -- base wage raised to $15 per hour; $150 million charitable contribution, and $1,000 bonuses to 60,000 employees:

“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers.” – Andy Cecere, President and CEO

Bio-Techne (Minneapolis, Minnesota) -- $500 bonuses for all 1,650+ employees:

Many of you, particularly in the U.S., have probably been keeping up with the news the past few months on U.S. tax reform. With the passage of the bill in Congress yesterday and the President’s signature, the new tax law is now official. How does this affect our company? A lot. Our current corporate income tax levels average between 29% and 31%. With this new tax law, over the next year our tax rates will drop to levels potentially as low as 21%. We don’t know the total answer yet because the law is complicated, and includes tax calculations from other countries where we do business as well. What I can tell you is that we are likely to pay substantially less taxes in the U.S. and overall.

There has been extensive media coverage here in the U.S. on what companies will do with these gains. The U.S. Government’s primary goal for the new law is that companies will use the additional monies to invest in growth, and not simply to benefit shareholders through a dividend increase or share buyback. I am happy to tell you that we will use the savings to invest in our company and in you. We will use the funds to continue our investment in the company through expansion and acquisitions. But we also want to invest in our employees. Our board of directors has approved a recommendation to pay a bonus of US $500 to every employee globally. The bonus will be paid to all employees employed as of December 31, 2017 (other than the Corporate Leadership Team) and will be included in a January 2018 payroll. Management and the Board value each of you and your contributions, and this bonus is one way we wish to show our appreciation for your contributions to our strong business performance and excellent execution.

I look forward to working with all of you to create great future of continued growth for Bio-Techne. On behalf of the entire management team, thank you. – Dec. 21, 2017 special message to employees from Bio-Techne CEO Chuck Kummeth

Best Buy (Richfield, Minnesota) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees nationwide will receive bonuses:

Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.

In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.

All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.

In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.

In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.

“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman.

In recent days, other major retailers including Lowe’s, Home Depot and Walmart have also said they will hand out bonuses, expand benefits, and raise wages of its workers in light of the tax reform.

In Minnesota, U.S. Bancorp and TCF Financial also are handing out bonuses to workers and increasing charitable donations. U.S. Bank also said it would raise the minimum wage of its hourly employees to $15.

Among other changes, the new tax law cut the top federal tax rate for corporations from 35 percent to 21 percent.”—Feb. 2 2018, Minneapolis Star Tribune

Hormel Foods Corp. (Austin, Minnesota) – Stock options for employees; increased base wage to $13 per hour:

Hormel Foods Corp. this morning announced that it plans to use savings from the federal Tax Cuts and Jobs Act to award stock options to its employees and raise starting wages to $13 an hour. — Feb. 22, 2018 Post-Bulletin article excerpt

TCF Financial Corporation (Wayzata, Minnesota) -- $1,000 bonuses for full time employees; $500 bonuses for part time employees:

“As a result of the Tax Cuts and Jobs Act, TCF will provide approximately $5 million in one-time bonuses to eligible team members—$1,000 to full-time team members and $500 to part-time team members—who earned less than $100,000 in total compensation during 2017, totaling 80 percent of its workforce. Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018.” – Friday Dec. 29, 2017 TCF Financial Corporation press release

Data Sales Co., Inc. (Minneapolis, Minnesota) – $1,000 bonuses for all 80 employees:

Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:

“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”

Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release

DTN (Burnsville, Minnesota) -- DTN an independent provider of information and actionable insights in the areas of agriculture, transportation and energy, and publisher of The Progressive Farmer, gave $1,000 bonuses to nearly 700 employees.

Ecolab Inc. (St. Paul, Minnesota) – $25 million in charitable donations:

In response to the passage of the new U.S. tax law, Ecolab announced its intent to make a $25 million contribution to the Ecolab Foundation. Since 1986, the Ecolab Foundation has contributed more than $100 million to communities in which we do business by providing basic needs, including hunger relief and affordable housing; supporting education, the arts and environmental conservation; as well as providing support to global relief organizations during times of natural disasters. – Jan. 23, 2018 Ecolab Inc. press release

T.J. Maxx – 16 stores in Minnesota – increased retirement plan contributions, parental leave, enhanced vacation benefits, employee bonuses, 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

Apple (There are five Apple stores in Minnesota: Bloomington, Edina, Minneapolis, Minnetonka, Roseville) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $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.

AT&T -- 1,592 Minnesota employees received $1,000 bonuses; nationally, $1 billion increase in capital expenditures.

Bank of America (Multiple locations in Minnesota) -- $1,000 bonuses.

Chipotle Mexican Grill (Multiple locations in Minnesota) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Cintas Corporation (Multiple locations in Minnesota) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

CVS Health (Multiple locations in Minnesota) -- Base wage raised to $11 per hour, and other pay ranges adjusted accordingly; company will absorb increases costs of health insurance premiums; creation of new parental leave program.

Comcast (Multiple locations in Minnesota) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Home Depot (Multiple locations in Minnesota) -- Bonuses for all hourly employees, up to $1,000

Lowe's -- 1,000 employees at 11 stores in Minnesota. Expanded benefits and maternity/parental leave; $5,000 of adoption assistance; bonuses of up to $1,000.

Ryder (Six locations in Minnesota) – Tax reform bonuses for employees totaling $23 million nationwide.

Taco John’s (62 locations in Minnesota): All full-time and part-time crew members received a $200 after-tax bonus:

Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).

On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:

Every restaurant crew member - full-time and part-time - received $200 (after taxes);
General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.

“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”

“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”

The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 John’s International, Inc. press release

Starbucks Coffee Company (Multiple locations in Minnesota) – $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plant and support center employee stock grants, totaling more than $100 million in stock grants nationwide; 8,000 new retail jobs and 500 new manufacturing 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 Minnesota) – $1,200 bonuses for full-time employees, $500 bonuses for part-time employees.

Wal-Mart – 69 locations in Minnesota; 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.

Waste Management, Inc. (Multiple locations in Minnesota) -- $2,000 bonuses.

Wells Fargo – 157 bank locations in Minnesota -- Base wage raised from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.

Anthem (Multiple locations in Minnesota) -- Nationally, $1,000 in extra 401(k) contributions for 58,000 employees.

Note: If you know of other Minnesota examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

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Biden Nominates Left-Wing Extremist to head OCC

Posted by Bryan Bashur on Monday, September 27th, 2021, 5:00 PM PERMALINK

Last week, President Biden nominated a Cornell University law professor who was educated in the Soviet Union to lead the Office of the Comptroller of the Currency (OCC).

Saule Omarova, a graduate of Moscow State University and a recipient of the Lenin Personal Academic Scholarship, should raise eyebrows in the Senate.

If Omarova is confirmed to the position, she will be able to serve a five-year term as comptroller of the currency. As comptroller, Omarova would head the bureau that “charters, regulates, and supervises all national banks, federal savings associations, and federal branches and agencies of foreign banks.”

On her resume, Omarova states that she was a senior fellow at the Berggruen Institute from 2020-2021. The think tank was founded by Nicholas Bergguren, a self-proclaimed Marxist, and has a history of promoting Chinese communist propaganda in the news.

Omarova will also undoubtedly expand the size, scope, and authority of the OCC to the limit.

She would use her role to push “equity” policies that increase the federal government’s footprint in the market. Most notably, Omarova has advocated for the Federal Reserve to provide deposits and lending for individuals in the country—crowding out any private banking opportunities in the United States. Omarova has explicitly stated her support for replacing private bank deposits with the Federal Reserve in the name of “equity.” Omarova says that, “the ultimate ‘end-state’” in her writing is where “FedAccounts fully replace—rather than compete with—private bank deposits.” This would be a total overhaul of the banking system in the United States. Effectively eliminating all free market competition in the banking system.

Omarova has also expressed the need to continue to assert strong government authority when administering bank charters. In an article from 2015, she and her coauthor opined, “whether it might be time to bridge the gulf between banking and general corporate regulatory regimes – not by making access to bank charters ‘free and easy,’ but by making access to corporate privileges once again expressly conditional on the delivery of public benefits.” No doubt, Omarova has no intention of promoting free market ideologies when regulating federally chartered banks, but instead will likely implement policies to make it harder for banks to conduct business and thus restrict access to capital across the country.

Omarova is not shy about expanding the size of the federal government to prop up every industry in the United States. For example, in an article she wrote in April of 2020, Omarova stated the need for a new permanent federal agency to bail out companies during crises. Omarova states that “Having a permanent institutional platform for coordinating the national crisis response, including bailouts of private companies, would help to ensure that these emergency measures are executed in an efficient, transparent, and democratically accountable, and socially just manner.” Omarova calls this agency the National Investment Authority. She envisions this new centralized investment juggernaut to “act directly in financial markets as a lender, guarantor, securitizer, and venture capitalist with a broad mandate to mobilize, amplify, and direct public and private capital to where it’s needed most.” So, the federal government gets to decide where capital should be allocated, not private banks who actually have shareholders that hold them accountable.

Finally, Omarova is critical of cryptocurrencies. In an article Omarova wrote for the Harvard Law School Forum on Corporate Governance, she claims that cryptocurrencies contribute to financial instability, fail to produce “activity in the real economy,” and “fuel financial speculation on an unprecedented scale.” In light of her opinions on cryptocurrencies, it is unlikely that Omarova would be supportive of potential proposals to engender greater collaboration or partnerships between fintechs and national banks.

When Omarova appears before the Senate Banking Committee for her nomination hearing, senators should ask her hard questions. The Senate needs to avoid confirming someone to the helm of the OCC that will restructure the national banking system to reflect that of a totalitarian regime.

Photo Credit: "United States Capitol" by Phil Roeder is licensed under CC BY 2.0

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Posted by Isabelle Morales on Monday, September 27th, 2021, 4:30 PM PERMALINK Follow @IsabelleAliciaa

President Biden constantly accuses others of not “paying their fair share” of taxes and even claims tax increases are “patriotic.” But Biden himself could owe up to $500,000 in unpaid taxes, according to a new report by the Congressional Research Service, published in the New York Post.

It is time for Biden to close his personal tax gap. Even the progressive Tax Policy Center called Biden’s maneuvers “pretty aggressive.”

In 2017 and 2018 Biden utilized several “S corporations” to avoid paying Medicare tax on speaking fees and book sales. These two S-corporations, the CelticCapri Corporation and the Giacoppa Corporation, allowed Biden to shield $13 million in income and avoid the 3.8 percent Medicare Payroll Tax, and the 0.9 percent Obamacare "Additional Medicare Tax."

While Biden’s tax avoidance has been known for several years now, the CRS report analyzes cases in which the IRS won against taxpayers who used similar, aggressive tactics. As such, the report suggests that the IRS would also have a strong case that Biden owes $500,000 in taxes under current rules, as he improperly in 2017 and 2018.

As the report explains, courts have routinely determined that shareholder-employees are subject to employment taxes:

“Courts have agreed with the IRS that shareholder-employees are subject to employment taxes when shareholders take distributions, dividends, or other forms of compensation in lieu of reasonable compensation.”

Even Left-leaning tax experts have previously called out Biden for his "pretty aggressive" tax maneuvers, as reported by Richard Rubin of the Wall Street Journal:

“To the extent that the Bidens’ profits came directly from the couple’s consulting and public speaking, “to treat those as other than compensation is pretty aggressive,” said Steve Rosenthal, a senior fellow at the Tax Policy Center, a research group run by a former Obama administration official.”

This is clear hypocrisy as Biden supports expanding Obamacare and routinely says “the rich” need to pay their fair share. The Obama administration considered it a top priority to close this loophole. Further, Democrats’ $3.5 trillion reconciliation would prohibit this specific tactic.

Joe Biden has repeatedly railed against the “rich” using tax loopholes. For instance, during his speech at the 2020 Democrat National Committee he said loopholes should be repealed and the wealthy need to pay their fair share:

"We can pay for these investments by ending loopholes, unnecessary loopholes... Because we don’t need a tax code that rewards wealth more than it rewards work. I’m not looking to punish anyone. Far from it. But it’s long past time the wealthiest people and the biggest corporations in this country paid their fair share.”

President Biden has been championing the $3.5 trillion reconciliation bill, which includes the largest tax increase since 1968. These tax hikes will disproportionately hurt workers, retirees, consumers, and small businesses. However, they’ll be told that their involuntary sacrifice is “patriotic” and necessary. Meanwhile, politicians who impose these tax hikes, like Joe Biden, can and will use their infinite resources to avoid paying “their fair share.”

Biden needs to immediately send the IRS a $500,000 check to close his personal tax gap. Otherwise he has no moral authority to lecture and accuse everybody else.

Photo Credit: "President Joe Biden Visit" by National Renewable Energy Lab is licensed under CC BY-NC-ND 2.0.

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Posted by Isabelle Morales on Monday, September 27th, 2021, 4:20 PM PERMALINK Follow @IsabelleAliciaa

Senator Mike Braun (R-Ind.) last week introduced legislation that ensures Senate Democrats allow a transparent and open process that includes committee hearings before voting on their $3.5 trillion budget reconciliation bill. This legislation, the No Hearing, No Vote Act of 2021, is supported by Senators Burr (R-N.C.), Inhofe (R-Okla.), Barrasso (R-Wyo.), Blackburn (R-Tenn.), Cramer (R-N.D.), Crapo (R-Idaho), Rick Scott (R-Fla.), Hoeven (R-N.D.), Ernst (R-Iowa), Lankford (R-Okla.), Capito (R-W.V.), Risch (R-Idaho), Rubio (R-Fla.), and Hagerty (R-Tenn.).

This legislation mirrors legislation introduced by Senate Majority Leader Chuck Schumer (D-N.Y.) and 39 other Democrats in 2017, so this should not be a controversial bill. If lawmakers are serious about ensuring a transparent process for such consequential pieces of legislation, they should vote in favor of this bill.

Congressional Democrats have not held any hearings on the policies they have proposed in the $3.5 trillion reconciliation bill. The Senate also plans to skip the markup process and take this bill straight to the Senate floor. intend to hold a markup during the consideration of this bill either. Clearly, the American people are being kept in the dark on what is actually in this legislation.

The reconciliation bill Democrats have proposed contains the largest tax increase since 1968, a massive expansion of welfare, supersizing of the Internal Revenue Service, numerous green energy subsidies, and more.

The reconciliation bill contains a corporate income tax hike to 26.5 percent, higher than Communist China. Under this plan, the average combined state and federal corporate tax would be 31 percent. Corporate taxes are primarily borne by workers and consumers. It would also increase the top marginal income tax rate to 39.6 percent, hitting millions of small businesses organized as pass-throughs. Further, the bill would double the capital gains rate, impose a 15 percent minimum tax on book income, and more.

Democrats would use these taxpayer funds to radically expand the welfare state through a refundable child tax credit, paid medical and family leave, free pre-K education, free community college, public health insurance plans, countless tax credits for green energy, and more. It also contains countless "woke," perplexing items like a tax handout for journalists, the Civilian Climate Corp (make-work program for jobless climate activists), and a $1,500 tax credit for e-bikes.

If passed, this reconciliation bill will have real, enormous effects on the American people. At the very least, the American public and all lawmakers should be part of the conversation and process.

Photo Credit: "US Capitol" by Reizigerin is licensed under CC BY-ND 2.0

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Posted on Monday, September 27th, 2021, 2:02 PM PERMALINK

New data released today by Congress's Joint Committee on Taxation (JCT) showed what we have known since the very beginning: The Congressional Democrats plan to hike the tobacco tax, and increase taxes on lifesaving reduced risk tobacco alternatives, will be overwhelmingly paid by some of the poorest in society, and is a blatant violation of President Biden's pledge to not raise taxes on Americans earning under $400,000.

According to the JCT, over a quarter of money raised will come from persons earning under $30,000, 77.5% of people who will be hit with these taxes make under $100,000/year, while 94.3% make under $200,000 a year.

Fortunately, some Democrats such as such as Rep. Steven Horsford (D-NV) have "raised concerns that it would hit those with lower incomes the hardest". Hopefully this new data will help convince his colleagues to honor President Biden's pledge.

Posted by John Kartch on Monday, September 27th, 2021, 1:19 PM PERMALINK

If Sen. Joe Manchin votes for the Democrats' reconciliation bill, he will stick West Virginia companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would leave West Virginia with a combined federal-state corporate tax rate of 31.3% vs. communist China's 25%.

The Democrat bill will also put West Virginia companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Manchin must explain why he wants to stick West Virginians with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The Democrats' $3.5 trillion bill will impose the largest tax increase since 1968. It will raise individual income taxes, small business taxes, corporate taxes, and capital gains taxes. If passed, the combined federal-state capital gains tax rate for West Virginians would be 38.3% vs. China's 20%.

The burden of the corporate tax rate hike will be borne by workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."

A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:

"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."

A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:

"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."

A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:

"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."

"Manchin would be wise to oppose any tax increase," said Norquist.

Posted by John Kartch on Monday, September 27th, 2021, 1:12 PM PERMALINK

If Sen. Jon Tester votes for the Democrats' reconciliation bill, he will stick Montana companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would leave Montana with a combined federal-state corporate tax rate of 31.5% vs. communist China's 25%.

The Democrat bill will also put Montana companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Tester must explain why he wants to stick Montanans with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"Tester would be wise to oppose any tax increase," said Norquist.

Posted by John Kartch on Monday, September 27th, 2021, 1:06 PM PERMALINK

If Sen. Maggie Hassan votes for the Democrats' reconciliation bill, she will stick New Hampshire companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would leave New Hampshire with a combined federal-state corporate tax rate of 32.2% vs. communist China's 25%.

The Democrat bill will also put New Hampshire companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Hassan must explain why she wants to stick New Hampshire companies with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"Hassan would be wise to oppose any tax increase," said Norquist.

Posted by John Kartch on Monday, September 27th, 2021, 11:46 AM PERMALINK Follow @JohnKartch

If Sens. Raphael Warnock and Jon Ossoff vote for the Democrats' reconciliation bill, they will stick Georgia companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would leave Georgia with a combined federal-state corporate tax rate of 30.7% vs. communist China's 25%.

The Democrat bill will also put Georgia companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Warnock and Ossoff must explain why they want to stick Georgians with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"Warnock and Ossoff would be wise to oppose any tax increase," said Norquist.

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Posted by Mike Palicz on Friday, September 24th, 2021, 1:30 PM PERMALINK Follow @Mike_Palicz

Senate Finance Committee Chairman Ron Wyden (D-Oregon) confirmed today that the Senate majority leader asked him to craft carbon tax legislation to be included in Democrats' $3.5 trillion tax and spend blowout.

Upon the request of Majority Leader Chuck Schumer (D-New York), Wyden is drafting legislation that could create a carbon tax starting as high as $18 per ton and set to increase over time, according to reporting from the New York Times. For context, the Congressional Budget Office has previously estimated that a $20 per ton carbon tax would increase taxes by $1.2 trillion over a decade while the center-left Tax Policy Center found a $20 per ton carbon tax reduces the pre-tax income of households in the lowest income quintile by nearly one percent.

A Clear Violation of Biden’s Tax Pledge

This tax increase would violate President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. A carbon tax would increase the price of gasoline, household energy bills and everyday consumer goods.

Last week, a leaked document from the Senate Finance Committee outlined plans for a similarly described carbon tax that would be paired with a carbon “border adjustment” – a proposal which the Whitehouse has already stated would “raise prices on a host of consumer goods, from cars to appliances, and conflict with Biden’s pledge not to tax any American earning less than $400,000 per year.”

Gas Tax Hike on Steroids, Would Double the Gas Tax in Year One

A carbon tax of $18/ton would roughly translate to a gas tax increase of 18 cents per gallon in year one. A recent study from the Congressional Research Service found that every $1 per ton increase in a carbon tax roughly translates to a 1 cent per gallon increase in the price of gasoline. The current federal gas tax is 18.3 cents per gallon, meaning Wyden’s carbon tax would effectively double the gas tax in year one.

Biden’s own Secretary of Transportation, Pete Buttiegieg, has previously acknowledged that increasing the federal gas tax would violate Biden’s pledge.

“The President’s made a commitment that this administration will not raise taxes on people making less than $400,000 a year,” Buttigieg told Bloomberg Radio’s “Sound On” show in February. “And so that rules out approaches like the old fashioned gas tax.”

Sen. Joe Manchin ruled out a carbon in February

In February, Senator Joe Manchin (D-West Virginia) categorically ruled out a carbon tax while on video during a webinar:

"They want to talk about this as a penalty? Forget it. As long as I'm here and there's 50 votes and it takes 51 to pass it,” Manchin stated.

Democrats passing a carbon tax in the Senate would require a historical flip-flop from Sen. Manchin.

Photo Credit: WikiMedia Commons

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Posted by John Kartch on Friday, September 24th, 2021, 12:30 PM PERMALINK Follow @JohnKartch

If Sens. Kyrsten Sinema and Mark Kelly votes for the Democrats' reconciliation bill, they will stick Arizona companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would leave Arizona with a combined federal-state corporate tax rate of 30.1% vs. communist China's 25%.

The Democrat bill will also put Arizona companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Sinema and Kelly would have to explain why they want to stick Arizonans with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The burden of the corporate tax rate hike will be borne by Arizona workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"Sinema would be wise to oppose any tax increase," said Norquist.

More from Americans for Tax Reform

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