New Jersey Examples of Tax Reform Good News

Posted by John Kartch on Tuesday, March 5th, 2019, 9:00 AM PERMALINK Follow @JohnKartch

Thanks to the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump, 90 percent of American wage earners have higher take-home pay. And employers of all sizes are hiring, raising pay, increasing benefits, upgrading equipment and expanding operations.

Below are several examples of tax reform good news in New Jersey (Additions to this list can be sent to jkartch@atr.org)

New Jersey Families See Increased Tax Simplification and Tax Reduction. Americans at every income level have seen significant tax reduction. 90 percent of families and individuals are seeing increased take-home pay across the country. There are numerous reforms in the bill that benefit taxpayers in New Jersey and across the country:

The Tax Cuts and Jobs Act doubled the child tax credit from $1,000 to $2,000 per child. 563,170 New Jersey families took the Child Tax Credit in 2015.
The Tax Cuts and Jobs Act doubled the standard deduction for an individual from $6,000 to $12,000 and for a family from $12,000 to $24,000. 2,574,770 New Jersey families and individuals took the standard deduction in 2015.
The Tax Cuts and Jobs Act raised the threshold of the Alternative Minimum Tax so fewer taxpayers are forced to comply with the provision. 279,740 New Jersey families paid the Alternative Minimum Tax in 2015.

New Jersey Middle Class Families See Increased Take-Home Pay. In 2018, New Jersey taxpayers will see average tax reduction of $1,490 and around 6 in 10 New Jersey taxpayers see an average federal tax cut of $2,740.

90 percent of New Jersey taxpayers with annual income of between $48,300 and $77,300 will see an average federal tax cut of $930 in 2018.
84 percent of New Jersey taxpayers with annual income between $77,300 and $135,800 will see an average federal tax cut of $1,390 in 2018.
80 percent of New Jersey taxpayers with annual income between $135,800 and $314,500 will see an average federal tax cut of $3,070 in 2018.

New Jersey Families See Relief From the Individual Mandate Tax Penalty. Obamacare imposed a tax penalty of $695 for an individual and $2,085 for a family of four for failing to buy “qualifying” health insurance as defined by the federal government. The Tax Cuts and Jobs Act repeals this unfair tax.

The individual mandate tax penalty is one of the most regressive taxes in the code as it disproportionately impacts low and middle-income families:

188,570 New Jersey individuals and families paid a total of $93,342,000 in individual mandate tax penalties in 2015.
37.56 percent of New Jersey taxpayers (70,830 households) that paid the individual mandate made less than $25,000 in annual income.
77.91 percent of New Jersey taxpayers (146,910 households) that paid the individual mandate made less than $50,000 in annual income.

Tax Reform Benefits Businesses and Workers in New Jersey. The Tax Cuts and Jobs Act reduced the federal corporate tax rate to 21 percent and established a 20 percent small business deduction. Businesses across the state have responded by announcing pay raises, bonuses, 401(k) match increases, and expansions. For example:

Tingley Rubber Corporation – based in Piscataway, New Jersey - announced one-time bonuses of $1,000 because of the recent tax reform passed by Congress.
Quest Diagnostics Incorporated – based in Secaucus, New Jersey – has announced bonuses of up to $500 for 40,000 employees.
Amicus Therapeutics – based in Cranbury, New Jersey – will build a $200 million facility in the U.S. instead of Europe because of tax reform. The factory will produce a new drug designed to treat Pompe, a rare, fatal disease. The facility will employ at least 200 people with an average salary of $100,000.
Lowe’s – (5,000 employees at 39 stores and two distribution centers in New Jersey). Employees will receive bonuses of up to $1,000 based on length of service, expanded benefits and maternity/parental leave, and $5,000 of adoption assistance.
Amboy Bank – based in Old Bridge, New Jersey – is increasing its employee base wage to $15 per hour and giving $1,000 bonuses for non-executive employees.

New Jersey companies of all sizes give powerful testimonials to the power of tax reform:

Metallix (Shrewsbury, New Jersey) - Employee bonuses, investing in business growth:

First order of business? Giving each of Metallix’s 98 workers a $1,000 bonus, an unexpected surprise that came just days after tax reform took effect.

“From the outset, the company wanted to share the benefits of tax reform with our employees,” said Maria Piastre, president of Metallix. “On February 14, every employee received a net $1,000 after-tax bonus in response to tax reform. Coming so soon after our usual end-of-year bonuses, it was completely unexpected by Metallix employees, and we were all very happy to receive it.”

Metallix wasn’t shy about tying these bonuses directly to tax reform. Each employee also received a letter from Metallix owner Eric Leiner, who explained that tax reform was going to mean a big boost to the company—and that he wanted to make sure employees were receiving their share of the good fortune. Metallix employees clearly took this sentiment to heart.

Piastre said that, months after the bonuses were given out, many employees still had Leiner’s letter hung proudly at their desks.

Piastre also explained that Metallix was using some of the benefits of tax reform to grow their business—and that significant investments were now more feasible because the company’s taxes had been so substantially lowered. - August 2, 2018, National Association of Manufacturers article excerpt

Atlantic City Electric (Atlantic City, New Jersey) - The utility will pass along tax cut savings to customers:

Atlantic City Electric will provide $23 million in annual tax savings to its customers. The company made a filing this month with the New Jersey Board of Public Utilities, which was approved on March 26, 2018. Customers will begin to see reductions on their bills around April 1, 2018. - April 3, 2018, Exelon Utilities press release excerpt

Honeywell (Morris Plains, New Jersey) – increased 401(k) match:

“I am confident in Honeywell’s future, and our ability to continue to deliver for our shareowners and our employees. Our strong performance in 2017, together with the enactment of new U.S. tax legislation, has enabled us to increase our 401(k) match in the U.S. This is a sustained, annual benefit that will provide a more secure retirement for our employees. We believe that enhancing this benefit is extremely valuable and important to our employees over the long term,” Adamczyk concluded.—Jan. 26 2018, Honeywell press release

Flemington Car & Truck Family of Brands (Flemington, New Jersey) -- $500 employee bonuses:

The new tax reform law is giving some benefits to New Jerseyans. The Flemington Car and Truck Country Family of Brands, a new and used car dealership in Flemington, is awarding each of its full-time employees a $500 bonus because of the recently passed federal Tax Cuts and Jobs Act.

As a result of the corporate tax rate cut under the new law to 21 percent from 35 percent, the company will also look to upgrade its facility and hire additional workers. The dealership is 41 years old and has 17 brands in eight different locations.

“We believe this is the right thing to do,” said company chairman Steve Kalafer, in a written statement. “Reinvesting tax savings in our employees and our businesses will make our communities and America stronger. We call on all of the auto manufacturers we work with to help drive economic growth by giving back to the communities where they employ and invest with appropriate employee bonuses and by creating new jobs with their new capacity for additional capital expenditures.” – Jan. 8, 2018 NJ Biz article excerpt

Quest Diagnostics Incorporated (Secaucus, New Jersey) -- Bonuses of up to $500 for 40,000 employees:

Tax Reform Benefit

In 2018 the company expects to realize approximately $180 million in tax savings on an adjusted basis. Of this amount, the company plans to reinvest roughly $75 million before tax back into the business and its employees, resulting in a benefit of approximately $120 million to net earnings. Investment initiatives include:

-Advanced diagnostics innovation through new tests and high-touch concierge services;

-Investments to deliver a consistently excellent consumer experience both online through the MyQuest mobile patient application and patient service centers; and

-A bonus of up to $500 for nearly 40,000 employees to be paid based on the company's performance in 2018. -- Feb. 1 2018, Quest Diagnostics Incorporated press release

New Jersey American Water (Swedesboro, New Jersey) – The utility will pass along tax cut savings to customers:

New Jersey American Water customers also recently had a rate decrease as a result of the Tax Cuts and Jobs Act. On April 1, 2018, most customer water rates were reduced by 5.9 percent (and 2.3 percent for former Shorelands Water Company customers). The water bill for the average residential customer using 6,000 gallons a month decreased approximately $3.36 per month ($1.00 per month for former Shorelands customers), and the average residential wastewater bill decreased between $1.49 and $5.81 per month, depending on service area.

The BPU is continuing their review of the overall impact of the new tax act, and further rate adjustments are anticipated in the coming months. – May 11, 2018, BusinessWire article excerpt

Merck (Kenilworth, New Jersey) -- Bonuses (details to be announced); increased charitable donations; increased capital expenditures:

“The recently enacted U.S. tax legislation improves Merck’s financial flexibility to invest in sustainable long-term value creating opportunities. In addition to the company’s ongoing investment in R&D, business development and continued support of the dividend, as well as share repurchases, the company also:

Plans to invest approximately $12 billion over 5 years in capital projects including approximately $8 billion in the United States
Made a contribution to the Merck Foundation in the fourth quarter of 2017
Plans to provide a one-time, long-term incentive award for its eligible non-executive employees in the second quarter of 2018” – Feb. 2 2018, Merck press release

Tingley Rubber Company (Piscataway, New Jersey) -- $1,000 bonuses:

New Jersey based Tingley Rubber Corporation will be issuing all U.S. based employees one-time bonuses of $1,000 because of the recent tax reform passed by Congress.

Tingley’s ownership announced Thursday its plans to share some of the tax benefit directly with their employees to express the company's gratitude. The 122-year-old, fifth generation family owned business joins many businesses across the country in giving employee bonuses after Congress passed a sweeping tax cut for businesses and individuals.

President Donald Trump signed a bill on December 22^nd overhauling the nation's tax code. One of the biggest changes included in the bill cuts the corporate tax rate from 35 percent to 21 percent for qualifying corporations. The bill also restructures and lowers the seven personal income tax brackets.

Based in Piscataway, NJ the privately held Tingley Rubber Corporation announced the bonuses during an employee luncheon held on March 22^nd. The $1,000 bonuses will also be eligible for the company’s 401(k) plan deferral with the standard corporate match.

"The economic development that should come as a direct result of the new tax reform legislation and deregulations will positively affect Tingley’s ability to grow its business. The tax reform package will allow Tingley to invest more into our strategic initiatives, and better serve our customers, as well as our employees and shareholders," said Owner and Chairman of the Board, Bruce McCollum. Bruce’s son and owner JB McCollum said "We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude."

President & COO, Mike Zedalis, expressed his gratitude to the McCollum family and sees the new tax plan as a major boost to Tingley: “Our company continues to grow, and enhanced investment into our operations will always bring benefits to our customers, employees and shareholders.”

Tingley Rubber Corporation is a leading supplier of protective footwear and clothing and has been protecting generations of workers since 1896. -- March 26, 2018 Tingley Rubber Corporation press release

Public Service Enterprise Group (Newark, New Jersey) – the utility will pass along tax reform savings to customers:

Public Service Electric and Gas Co. (PSE&G) today proposed to lower customer bills by approximately 2 percent on April 1 to pass on the benefits of the federal tax reform legislation enacted earlier this year.

In its filing with the NJ Board of Public Utilities, PSE&G will reduce rates by approximately $114 million on an annual basis effective April 1 to reflect lower federal taxes the utility will pay. The typical residential combined electric and gas customer will save nearly $41 per year. – March 2, 2018, PSE&G Press Release

Amicus Therapeutics (Cranbury, New Jersey) – In order to find a cure for a rare disease, the company is building a $200 million facility in the United States instead of overseas. The facility will employ at least 200 people who will earn an average of over $100,000 per year:

Specialty drugmaker Amicus Therapeutics, Inc. has decided to spend as much as $200 million on a new production facility in the U.S. instead of Europe.

At Amicus Therapeutics, the new tax law solved a geographic dilemma. The Cranbury, N.J., company is developing an experimental drug to treat Pompe disease, a rare inherited disorder that causes muscle weakness and can be fatal.

After early results for a new drug proved promising, Amicus wanted to increase production for further clinical testing and potential commercial sales.

Amicus, which has been using Chinese contract manufacturer WuXi Biologics to supply the drug, decided in August to build its own facility. The U.S. was at a disadvantage to Europe, due to its 35% statutory federal income-tax rate for companies. Ireland’s corporate tax rate, by contrast, is 12.5%.

Those financial considerations threatened to overshadow other advantages that a U.S. plant would offer, including the ease with which company officials could visit it, and the availability of talented workers in some regions.

“Our strong assumption was that it would be very challenging to establish a new bio-manufacturing facility in the U.S.,” Chief Executive John Crowley said in an interview.

As the tax legislation advanced in Congress last fall, however, building in the U.S. began to look more attractive. On Dec. 21, a day after Congress passed the final measure, which lowered the statutory corporate rate to 21%, Mr. Crowley recommended to his board the company focus on finding a U.S. site. The company has narrowed its choice to three East Coast cities Mr. Crowley declined to identify, and expects to decide in the next month or two. It expects the plant to cost $150 million to $200 million, and to employ at least 200 people at an average pay of $100,000 a year.

“With the changes in the tax law, it now makes the U.S. competitive with these geographies we’re looking at,” he said. – Jan. 26, 2018 Wall Street Journal article excerpt

Somerset Savings Bank (Bound Brook, New Jersey) -- $750 bonuses for employees excluding senior management:

Somerset Savings Bank announced today that, following the enactment of the new federal tax reform legislation, it will distribute a special cash bonus to its employees. Every employee, excluding senior management, will receive a one-time $750 bonus. – Jan. 23, 2018 Somerset Savings Bank press release

OceanFirst Financial Corp. (Toms River, New Jersey) – base wage increase to $15 per hour:

OceanFirst Financial Corp. (NASDAQ:OCFC) the holding company for OceanFirst Bank, today announced a commitment to increase the Bank's minimum hourly pay rate to $15.00 within 30 days of the enactment of the Tax Cuts and Jobs Act which has been approved by Congress and is expected to be signed into law in the near future." -- Dec. 22, 2017 OceanFirst Financial Corp. press release

Advanced Sciences and Technologies, LLC (Berlin, New Jersey) – increased 401(k) match for employees.

Unity Bank (Clinton, New Jersey) – all 200 non-executive employees will receive a $750 bonus:

In response to Congressional approval of tax reform legislation, Unity Bancorp, Inc. (NASDAQ:UNTY), parent company of Unity Bank, announced today that its Board of Directors has elected to provide all employees excluding executive management with a one-time $750 bonus.

“The bank’s Board and executive management felt strongly that the anticipated benefit of the corporate tax rate reduction should be shared with our employees,” said Unity Bank President & CEO James A. Hughes. “Unity’s employees constantly demonstrate their commitment to our customers and the community, not only in their work responsibilities, but by donating their personal time and resources to benefit those in need. We foster an entrepreneurial culture at Unity where the employees and bank can grow together and this decision fits perfectly with that philosophy.”

The corporate tax rate in the recently passed legislation will drop from 35% to 21%. Unity Bank intends to pay the bonuses to its approximately 200 employees in January. – Dec. 26, 2017 Unity Bancorp Inc. press release

Amboy Bank (Old Bridge, New Jersey) – Base wage raised to $15 per hour; $1,000 bonuses for non-executive employees:

The New Jersey Bankers Association said Amboy Bank was "sharing the benefits of the recent tax reform."

"They are joining the growing group of banks across New Jersey and the country that are rewarding employees with increased wages, special bonuses and enhanced benefits programs as well as increased funding for charitable giving," president and CEO John E. McWeeney, Jr. said in a statement. – Feb. 8, 2018 NJ Advance Media article excerpt

Apple (There are 12 Apple stores in New Jersey: Atlantic City, Bridgewater, Cherry Hill, Edison, Freehold, Lawrence Township, Marlton, Paramus, Rockaway, Short Hills, Wayne, Woodcliff Lake) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $30 billion in additional capital expenditures.

Johnson & Johnson (New Brunswick, New Jersey) – New investments due to tax reform – details will be released in April.

“Now regarding tax reform, what we said from the very beginning is that one of the major reasons, in addition to lowering the rate, is just frankly the flexibility that it provides us, and we think it actually helps make us more competitive, particularly on an international level if we happen to be in a competitive situation with other companies because now we have greater flexibility on how we can access that cash. So we think net-net, it's a positive for us. As you heard Dominic [J&J CFO] mention earlier, regarding the more immediate tax reform impact, we think that the -- the wise thing to do is to invest a good portion of that back into R&D. If you look over the past several years, the output, the productivity, particularly in our pharmaceutical pipeline, but also in others of our investments in R&D, we think, have been at the high end. And we think ultimately doing that, we'll have the greatest impact on our business, will help us get out to better serve underserved needs around the globe, and that's where we're heading in that direction.” – CEO Alex Gorsky

"We are pleased by the final passage of the U.S. tax cuts and jobs act.” – CFO Dominic Caruso

Bank of America (Multiple locations in New Jersey) -- New Jersey-based employees of Bank of America will receive $1,000 bonuses.

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

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

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

Home Depot -- 72 locations in New Jersey, bonuses for all hourly employees, up to $1,000

Lowe's -- 5,000 employees at 39 stores and two distribution centers in New Jersey. 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 (13 locations in New Jersey) – Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in New Jersey) – $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.

T.J. Maxx – 39 stores in New Jersey – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:

Associates

A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
Instituting paid parental leave for eligible Associates in the U.S.
Enhancing vacation benefits for certain U.S. Associates

Communities

Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt

U-Haul (Multiple locations in New Jersey) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wal-Mart – 63 locations in New Jersey -- 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 – 279 locations in New Jersey; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other New Jersey 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 on capital gains tax: “We should raise the tax back to 39.6 percent”

Posted by Adam Sabes on Thursday, August 22nd, 2019, 6:14 PM PERMALINK Follow @asabes10

Biden calls for doubling of capital gains tax rate

Democrat presidential candidate Joe Biden said he’d like to raise the capital gains tax rate to 39.6 percent, a near doubling of the current 20 percent.

Biden made the remarks on Wednesday, August 21 during an interview with Iowa Public Television:

“I believe we should, in fact, the capital gains tax should be at what the highest minimum tax should be, we should raise the tax back to 39.6 percent instead of 20 percent,” Biden said yesterday.

Raising the capital gains tax would harm Americans’ ability to build a nest egg and hurt the value of their homes, farms, and businesses.

Biden’s comments and his long Senate voting record mean voters should expect him to push for capital gains tax hikes if elected. During his time in the Senate, Biden consistently voted against tax cuts on capital gains.

In 2003, Biden voted against the reduction in the capital gains rate from 20 percent to 15 percent. In 2005 and 2006, Biden voted against extending the 15 percent rate.

In 2012, then-Vice President Biden and President Obama insisted the cap gains rate revert to 20 percent.

Biden and Obama then piled on another 3.8 percent capital gains tax hike -- the Net Income Investment Tax -- one of the many tax increases in Obamacare. The 3.8 percent tax hike took effect Jan. 1, 2013.

Currently, long-term capital gains are taxed at zero percent, 15 percent, or 20 percent, depending on income level.

Households subject to Obamacare’s 3.8 percent Net Income Investment Tax end up paying a 23.8% rate. And under Biden’s cap gains scheme, such households will face a 43.4 percent rate.

If you want to stay up-to-date on Democratic candidates and their threats to raise taxes, visit www.atr.org/HighTaxDems.

See more:

Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August

Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts

Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

“Medicare for All” is a Middle Class Tax Increase, Say Dems

Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

Elizabeth Warren "Wealth Tax" was described by the WaPo editorial board as having "a certain authoritarian odor"

Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People

Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA

VIDEO: 2020 Democrats Will Raise Your Taxes

Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts

Julian Castro: “We’re going to have to raise taxes.”

Biden and Harris: Raise the Corporate Tax Rate

Biden tweet: Ignore the fact I’ve already called for middle class tax hikes

Kamala Harris: “I Will Reverse” Trump’s Tax Cuts

Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes

Julian Castro Caught Lying about GOP Tax Cuts

NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts

Kamala Harris: I Will Repeal “That Tax Bill”

Cory Booker: “I do support” Imposing Carbon Tax on Americans

Harris: “We are Going to Repeal That Tax Bill”

Biden: I Will Raise Corporate Tax Rate to 28%

Kamala Harris Continues to Lie about Tax Cuts

Jay Inslee: “Repeal the Trump Tax Cuts”

Biden Running Ads to “Repeal Trump’s Tax Cuts.”

VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts

Here’s what happens if Dems repeal tax cuts

VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA

Kamala Harris: When I Enter Office "I Will Repeal" the TCJA

Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”

Bernie Sanders claims people would be “delighted to pay more in taxes”

Biden: Tax Cuts Will be “Gone” If I’m Elected

Kamala Harris: I Will Repeal Tax Cuts “on day one”

Biden again says capital gains tax is “Much too Low”

Biden: Capital gains tax “much too low”

VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts

Biden: “First thing I’d do is repeal those Trump tax cuts.”

Joe Biden broke his middle class tax pledge

“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses

Kamala Harris Vows Repeal of Tax Cuts “on Day One”

Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”

Posted by Tom Hebert on Thursday, August 22nd, 2019, 11:47 AM PERMALINK Follow @tomhebertdc

Indexing capital gains taxes to inflation would benefit millions of middle income households.

ATR looked at Internal Revenue Service data from 2016 (the most recent available data) to determine what percentage of middle class households experienced a capital gain or loss. Nationally, over half (56 percent) of households that had a capital gain or loss make less than $100,000 a year. 82 percent of households made less than $200,000 a year.

According to Democrat party rhetoric, under $200,000 a year is the definition of middle class.

USA
24,139,920 households had a capital gain or loss in USA
13,487,170 (56%) made less than $100k
19,695,490 (82%) made less than $200k

The breakdown for a number of key states is below.

For example, in Pennsylvania, over a million households had a capital gain or loss in 2016. 60 percent of households made less than $100,000, and 84 percent of households made less than $200,000.

These results are just from one year. Imagine how many middle income households would be helped over the course of a decade by ending the inflation tax:

Pennsylvania
1,082,680 households had a capital gain or loss in Pennsylvania
647,490 (60%) made less than $100k
911,900 (84%) made less than $200k

Ohio
832,260 households had a capital gain or loss in Ohio
522,480 (63%) made less than $100k
718,890 (86%) made less than $200k

Florida
1,481,850 households had a capital gain or loss in Florida
896,240 (61%) made less than $100k
1,240,750 (84%) made less than $200k

Michigan
757,870 households had a capital gain or loss in Michigan
473,780 (63%) made less than $100k
654,980 (86%) made less than $200k

Wisconsin
541,240 households had a capital gain or loss in Wisconsin
353,220 (65%) made less than $100k
479,990 (89%) made less than $200k

Minnesota
534,310 households had a capital gain or loss in Minnesota
278,180 (52%) made less than $100k
418,190 (78%) made less than $200k

New Hampshire
130,390 households had a capital gain or loss in New Hampshire
71,210 (55%) made less than $100k
107,560 (83%) made less than $200k

Iowa
266,630 households had a capital gain or loss in Iowa
170,630 (64%) made less than $100k
236,240 (89%) made less than $200k

North Carolina
670,350 households had a capital gain or loss in NC
383,900 (57%) made less than $100k
557,750 (83%) made less than $200k

Texas
1,510,740 households had a capital gain or loss in Texas
765,970 (51%) made less than $100k
1,179,050 (78%) made less than $200k

California
3,036,260 households had a capital gain or loss in California
1,489,030 (49%) made less than $100k
2,297,060 (76%) made less than $200k

New York
1,667,340 households had a capital gain or loss in New York
907,220 (54%) made less than $100k
1,321,100 (79%) made less than $200k

Photo Credit: SalFalko

Sen. Mitt Romney states he’s “looking at” introducing a $2 trillion carbon tax.

Posted by Mike Palicz on Tuesday, August 20th, 2019, 7:22 PM PERMALINK Follow @Mike_Palicz

Sen. Mitt Romney (R-UT) said in a speech on Monday that he is “looking at” and “considering” a massive new carbon tax of “roughly $50 per ton,” an energy tax that would hike taxes by roughly $200 billion in year one and at least $2 trillion in a 10 year window. While Senator Romney stopped short of outright endorsing a carbon tax, his warmness towards the idea should be a cause for alarm to taxpayers.

For context of how radical a $50 per ton carbon tax would be, voters in the deep-blue state of Washington handily rejected a carbon that began at $15 per ton in a 2018 ballot initiative. Perhaps Romney thinks voters just want to be taxed at even higher rates.

In his speech, Romney outlined that this proposal would use 90% of the revenue to issue rebate checks to individuals “affected by the fact that they’re paying more in taxes.” The other 10% would be used to aid individuals in “coal country” and help them “get back on their feet” from the tax’s impact. I'm sure coal country will be relieved to hear a politician promising to pick them up after he kicks them down.

The proposal described by Romney closely mirrors the carbon tax “dividend” legislation introduced earlier this year by Representatives Ted Deutch (D-FL) and Francis Rooney (R-FL). The Deutch-Rooney plan uses the carbon tax revenue to issue rebate checks back to individuals as an attempted offset for rising energy prices faced by consumers.

So let’s take a look at the details of the carbon tax “dividend” plan Romney is considering:

Contains anti-family provisions with children receiving only half of a credit and 18 year olds not counted as adults.

Taken directly from the legislative text:

“(B) PRO-RATA SHARE. —A carbon dividend payment is one pro-rata share for each adult, and half a pro-rata share for each child under 19 years old, of amounts available for the month in the Carbon Dividend Trust Fund.”

Do families spend less money on gas driving their kids to school or practice? Does it cost less money to heat and cool your home if you have more bedrooms? It’s inexplicable why the bill’s sponsors decided families only receive half of a credit per child.

Would cause significant damage to GDP growth.

According to a March report from the Congressional Research Service, a carbon tax and dividend plan set at $50 per metric ton (the same as described by Sen. Romney) would “yield GDP losses each year, ranging from 0.3% to 0.4%.” The report goes on to state that “if one were to add up the annual GDP losses (for example, over a 10-year period) from the lump-sum scenario compared to the baseline scenario, the resulting sum would be much larger.

Retirees will pay more taxes on their social security benefits

A report published by the pro-carbon tax Citizens' Climate Lobby acknowledges the following:

"Over the income-related phase-in range for the taxation of social security benefits, each additional $1.00 of non-social security income causes an additional $0.50 or $0.85 of social security benefits to become taxable. In most situations, the ordinary income tax rate in the phase-in range is 10 percent; however, at some income levels, the rate is 12 percent. Thus, $1.00 of non-social security income -- including income from the Dividend -- will be taxed at effective marginal rates of 15 percent, 18 percent, or 22.2 percent."

It even imposes income tax on the carbon tax "dividend."

The rebate checks the government would send back to individuals will count as taxable income. Americans would be forced to pay taxes on apology checks sent by the government for raising taxes in the first place. At tax time, Americans would have to deal with carbon tax paperwork for each member of their family. Here it is straight from the bill’s text:

“(D) FEE TREATMENT OF PAYMENTS. -- Amounts paid under this subsection shall be includible in gross income.

A tax on a tax, which will likely increase the complexity of your annual tax filing. Here's an idea -- how about not taking the money from taxpayers in the first place?

Greases the skids for a European-style Value Added Tax, a cash cow for big government by erecting a complex carbon tax border adjustment scheme.

It should be noted again that Sen. Romney did stop short of endorsing a carbon tax. However, his self-stated openness to a multi-trillion dollar tax hike is certainly concerning. Americans for Tax Reform urges Sen. Romney to reconsider his apparent interest in carbon taxes and join the 90 conservative and free-market organizations who oppose ANY form of a carbon tax.

More from Americans for Tax Reform

ATR Applauds Rep. Kevin Hern for Amendment Prohibiting a Carbon Tax

Here’s Every Democrat Who Supports Ocasio-Cortez’s Crazy “Green New Deal”

Carbon Tax Pushed By New Mexico Dems Would Raise Gas Taxes and Fees by 238%

Posted by Americans for Tax Reform on Tuesday, August 20th, 2019, 5:39 PM PERMALINK

American taxpayers should be encouraged by President Trump’s recent remarks on indexing capital gains taxes to inflation. As he said, “Indexing is something that a lot of people have liked for a long time and it is something that would be very easy to do. A lot of people have been talking about indexing for many years. It is something that I am certainly thinking about. I can say that a majority of the people in the White House, at the level that does this kind of thing, they like indexing. So it is something I’m thinking about.”

Indexing capital gains taxes to inflation will build on the success of the Tax Cuts and Jobs Act in growing the economy and increasing the wealth of American middle-class families. Taxing inflation is wrong and unfair.

ATR President Grover Norquist applauded President Trump’s comments today saying, “Today, President Trump endorsed a powerful action to further grow the American economy—to end the taxation of inflation on capital gains. This would greatly strengthen the American economy.”

There is already broad support among conservative groups for indexing capital gains. A coalition of 51 conservative groups sent President Trump a letter in January urging him to end the inflation tax on savings and investment saying “American families and job creators should not have to pay taxes on phantom income.”

Sen. Ted Cruz and twenty other Republican senators recently sent a letter that urged Secretary Steven Mnuchin to “eliminate inflationary gains from the Department of Treasury’s calculation capital gains tax liability.”

Trump has the authority to index cap gains, as shown by ATR’s legal memo here.

Photo Credit: Gage Skidmore- Flickr

More from Americans for Tax Reform

FEC Filings Show Donald Trump’s New Acting FDA Commissioner Backed Barack Obama and Other Democrats

ATR Statement on Inclusion of Vapor Product User Fees in Trump's 2020 Budget

Norquist: Tax Cuts are As American as July 4, 1776

Posted by Caroline Sayers on Tuesday, August 20th, 2019, 11:20 AM PERMALINK

In a power move that will face legal challenges, Kansas Governor Laura Kelly had the state department of revenue issue a notice demanding any and all online sellers remit sales tax.

The notice says “any remote seller doing business with Kansas residents must register with the department and collect state and local sales taxes and forward the revenues to the state, starting Oct. 1.” It makes Kansas the owner of the most aggressive internet sales tax in the nation.

The Supreme Court’s decision in Wayfair vs. South Dakota outlined a series of requirements that the court felt made the law acceptable. These included a minimum sales or transaction threshold, specifically preventing states from going after small businesses and sellers that were doing very little business in a state. (Tax Foundation lays out the full “Wayfair Checklist” here).

Kansas has no such exemptions for small businesses, which should make Kelly's new tax unconstitutional. The great irony is that Governor Kelly cites the court case in her notice.

Americans for Tax Reform has warned that states would start pushing the boundaries on the court’s decision, once the door was opened for state governments to reach across their borders and grab money from taxpayers who cannot vote for them. As ATR stated in its amicus brief to the court:

“if this Court overturns Quill, retailers with no presence in a taxing state will face complex and costly collection obligations, the threat of expensive and intrusive audits from thousands of taxing jurisdictions, and potential retroactive tax assessments,”

Incredibly, Kelly vetoed legislation this session that would have followed the guidance of the Wayfair decision, instead falling back on a previously passed bill that was not legal under the previous Quill v North Dakota decision.

The Governor was not happy that the bills passed by the Republican-controlled legislature significantly cut taxes to try and make up for the new burdens created by a new online sales tax.

The aggressive nature of the Kansas mandate sets the state up to lose businesses, revenue, and face potential lawsuits. Diane Yetter, founder of the Sales Tax Institute, said, “I think they’re insane. I just think Kansas is setting itself up for a lawsuit — and embarrassment, truthfully.”

In fact, a lawyer from the firm that represented Wayfair in the famous Supreme Court case believes the Kansas notice is legally on thin ice if does not include some type of sales threshold. A number of Kansas lawmakers, as well as the Kansas Chamber of Commerce have also commented that they were concerned about the notice. Legislators have said they will likely be taking up the issue again next session.

Under the Governor’s unilaterally-imposed notice, Kansas is hurting its business-friendly tax environment. The state is risking driving away out-of-state online retailers, and creating compliance nightmares for individuals who sell to a Kansas resident.

This is not what the Supreme Court promised in its Wayfair decision. This could be the first example of a state abusing its new taxing power, with many more to come.

Photo Credit: Flickr

Posted on Friday, August 16th, 2019, 1:12 PM PERMALINK

Castro: TCJA is “a failed promise that we will repeal in my first 100 days.”

2020 Democratic presidential candidate Julian Castro has vowed to repeal the GOP tax cuts “in my first 100 days.”

“The American people were promised tax reform, but instead President Trump and the Republican Party enriched their donors, big corporations and the very wealthy,” Castro’s published tax hike plan states. “The Trump tax scam is a failed promise that we will repeal in my first 100 days.”

On July 25, Castro was asked by a moderator at the NAACP annual convention “How can the nation pay its bills without raising taxes?”

Castro replied: “Well, I think that part of the answer is that we’re going to have to raise taxes. And we’re going to begin by repealing and replacing the Trump tax cuts.”

If Castro and the Democrats repealed the Tax Cuts and Jobs Act, the following would happen:

A family of four earning the median income of $73,000 would see a $2,000 tax increase.
A single parent (with one child) making $41,000 would see a $1,300 tax increase.
Millions of low and middle income households would be stuck paying the Obamacare individual mandate tax.
Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
The USA would have the highest corporate income tax rate in the developed world.
Taxes would rise in every state and every congressional district.
The Death Tax would ensnare more families and businesses.
The AMT would snap back to hit millions of households.
Millions of households would see their child tax credit cut in half.
Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.

According to an H&R Block report, Americans received significant tax relief from the GOP tax cuts: “overall tax liability is down 24.9 percent on average.” The report found that in Castro’s Texas, taxpayers received a 25.6% tax cut on average.

In Castro’s home state of Texas, households making the average income of $59,206 saw an average tax cut of around $1,324 according to a recent Tax Foundation report.

Even left-leaning and establishment media outlets confirm the good news arising from the Tax Cuts and Jobs Act:

The New York Times flatly stated: "Most people got a tax cut."
The Washington Post stated: “Most Americans received a tax cut.”
CNN's Jake Tapper did his own fact check and concluded: "The facts are, most Americans got a tax cut."
CNN's Jake Tapper also stated: "In fact, estimates from both sides of the political spectrum show that the majority of people in the United States of America did receive a tax cut."
FactCheck.org stated: "Most people got some kind of tax cut in 2018 as a result of the law."
FactCheck.org also stated: "The vast majority (82 percent) of middle-income earners — those with income between about $49,000 and $86,000 — received a tax cut that averaged about $1,050.

If you want to stay up-to-date on their threats to raise taxes, follow www.atr.org/HighTaxDems.

See more:

Kamala Harris Threatens to Repeal GOP Tax Cuts 3 Times in August

Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts

Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

“Medicare for All” is a Middle Class Tax Increase, Say Dems

Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

Elizabeth Warren "Wealth Tax" was described by the WaPo editorial board as having "a certain authoritarian odor"

Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People

Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA

VIDEO: 2020 Democrats Will Raise Your Taxes

Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts

Julian Castro: “We’re going to have to raise taxes.”

Biden and Harris: Raise the Corporate Tax Rate

Biden tweet: Ignore the fact I’ve already called for middle class tax hikes

Kamala Harris: “I Will Reverse” Trump’s Tax Cuts

Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes

Julian Castro Caught Lying about GOP Tax Cuts

NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts

Kamala Harris: I Will Repeal “That Tax Bill”

Cory Booker: “I do support” Imposing Carbon Tax on Americans

Harris: “We are Going to Repeal That Tax Bill”

Biden: I Will Raise Corporate Tax Rate to 28%

Kamala Harris Continues to Lie about Tax Cuts

Jay Inslee: “Repeal the Trump Tax Cuts”

Biden Running Ads to “Repeal Trump’s Tax Cuts.”

VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts

Here’s what happens if Dems repeal tax cuts

VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA

Kamala Harris: When I Enter Office "I Will Repeal" the TCJA

Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”

Bernie Sanders claims people would be “delighted to pay more in taxes”

Biden: Tax Cuts Will be “Gone” If I’m Elected

Kamala Harris: I Will Repeal Tax Cuts “on day one”

Biden again says capital gains tax is “Much too Low”

Biden: Capital gains tax “much too low”

VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts

Biden: “First thing I’d do is repeal those Trump tax cuts.”

Joe Biden broke his middle class tax pledge

“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses

Kamala Harris Vows Repeal of Tax Cuts “on Day One”

Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”

Photo Credit: Gage Skidmore/Flickr

Posted by Pat Whittinghill on Friday, August 16th, 2019, 11:04 AM PERMALINK

Senator Mitt Romney (R-Utah) recently made headlines when it was reported that he was considering a federal bill that imposes a carbon tax, a new nationwide tax on energy use and production in the United States. Passage of a carbon tax is a top priority of the environmental Left and has even attracted allies among corporate public relations departments at various multi-national companies.

Contrary to a favored narrative, however, there is no momentum for a carbon tax. Sen. Romney and Republicans in the House and Senate have wisely distanced themselves from these efforts and should continue to do so.

Time and time again, voters of all stripes have rejected carbon taxes. In solidly blue Washington state, two separate carbon tax proposals in 2016 and 2018 failed to gain the necessary support for passage among voters. A Republican Congressman, Carlos Curbelo (R-Fla.), made a carbon tax a top legislative priority of his and despite significantly outperforming Donald Trump in a deeply blue district in 2016, was ousted in 2018 as a result.

Outside of the US, carbon taxation programs haven’t fared any better. Carbon taxes were the primary spark of the riots in France, resulting in the suspension of the scheduled carbon tax increase. In Canada, residents are revolting against Prime Minister Justin Trudeau’s carbon tax. In Ontario, Canada’s most populous province, voters kicked out the carbon-tax supporting ruling party. Voters in Alberta did the same. In Australia, the longtime governing coalition of Labor and Green parties lost power after a center-right coalition promised to (and successfully did) repeal the tax. The lesson is clear: a carbon tax is toxic at the ballot box.

Carbon taxes raise the cost of utility bills, groceries, gasoline, and the costs of producing and transporting nearly every product on the market. That’s one of the reasons nearly every conservative organization in the country recently sent a letter to congress which stated unequivocally: “We oppose any carbon tax.”

The harms of a carbon tax aren’t limited to private businesses or consumers. When utility bills and gas prices go up, local governments feel the pain too. In fact, a school district in Canada wasforced to eliminate bus services for 400 public school students after facing a $3.3 million carbon tax bill. Proponents of a carbon tax have not addressed how local fire departments, school systems, and municipal governments are supposed to shoulder the burden of these costs.

In the case of the federal carbon tax bill, the so-called Energy Innovation and Carbon Dividends Act, the bill authors think they have designed a clever way to curry favor with voters, with that they call a “dividend.” Essentially, once bureaucrats in Washington get their cut of more than $1 trillion in new taxes, people are sent checks to help lessen the burden of higher prices on everything. The system for imposing the tax and the accompanying dividend is regressive, complicated, and will require a significant growth of government.

These “dividend” payments will be subject to income taxes. Households will have to deal with more paperwork for each member of the family before the annual April 15 deadline. This income tax increase caused by the carbon tax will also eat into Social Security benefits, as a much larger portion of the benefit becomes subject to taxes.

Senator Chris Coons (D-Del.) has stated that his carbon tax bill is "likely to be Democrat only,” and it is not hard to see why. Arbitrarily imposing higher costs on traditional energy sources and the products produced or transported with them will adversely impact nearly every aspect of life in America. The tax would have a disproportionate impact on low and middle income households. Taxpayers should applaud Senator Romney for steering clear of this onerous tax.

Content originally published in Townhall.

Photo Credit: Gage Skidmore

Posted by Adam Sabes on Friday, August 16th, 2019, 10:43 AM PERMALINK Follow @asabes10

2020 Democratic presidential candidate Kamala Harris has threatened to repeal the Tax Cuts and Jobs Act at least three times in the month of August.

“On day one, we are going to repeal that tax bill that benefits the top one percent and the biggest corporations in our country,” Harris said in Denver, Colorado on August 2.

“On day one, we’re going to repeal the tax bill that benefits the top one percent and the biggest corporations in America,” Harris said in Mount Pleasant, Iowa on August 11.

“On day one, we’re going to repeal that tax bill benefiting the top one percent and the biggest corporations in our country,” Harris said in Davenport, Iowa on August 12.

While Harris was speaking at a NAACP fundraiser in May, she threatened to “get rid of the whole thing,” if elected president.

A promise to repeal the tax cuts is a promise to raise taxes. If the tax cuts were repealed:

A family of four earning the median income of $73,000 would see a $2,000 tax increase.

A single parent (with one child) making $41,000 would see a$1,300 tax increase.

Millions of low and middle income households would be stuck paying the Obamacare individual mandate tax.

Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.

Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.

The USA would have the highest corporate income tax rate in the developed world.

Taxes would rise in every state and every congressional district.

The Death Tax would ensnare more families and businesses.

The AMT would snap back to hit millions of households.

Millions of households would see their child tax credit cut in half.

Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.

In Iowa, where Harris promised to repeal the TCJA, households making the average income, $76,076, received an average tax cut of around $1,423, according to a recent Tax Foundation report. According to the same report, every congressional district in America received a tax cut.

In Colorado, households making the average income of $84,918, received an average tax cut of around $1,594, according to the report.

The Washington Post also stated: “Most Americans received a tax cut.”

More evidence of the benefits flowing from the tax cuts can be found in a recent H&R Block report, which stated, “overall tax liability is down 24.9 percent on average.”

In Harris’s home state of California, the report found that residents received a 27.1% reduction in their taxes, on average. In the states where Harris made the tax hike threat – Colorado and Iowa – residents received a 24.7 and 24 percent tax cut, respectively, on average.

Even left-leaning and establishment media outlets confirm the good news arising from the Tax Cuts and Jobs Act:

The New York Times also flatly stated: "Most people got a tax cut."

CNN's Jake Tapper did his own fact check and concluded: "The facts are, most Americans got a tax cut."

CNN's Jake Tapper also stated: "In fact, estimates from both sides of the political spectrum show that the majority of people in the United States of America did receive a tax cut."

FactCheck.org stated: "Most people got some kind of tax cut in 2018 as a result of the law."

FactCheck.org also stated: "The vast majority (82 percent) of middle-income earners — those with income between about $49,000 and $86,000 — received a tax cut that averaged about $1,050.

The NYT also stated: “To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.”

If you want to stay up-to-date on their threats to raise taxes, visit www.atr.org/HighTaxDems.

See more:

Joe Biden: “I’m going to eliminate most all” of GOP Tax Cuts

Cory Booker Calls for Repeal of "Toxic" GOP Tax Cuts

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

“Medicare for All” is a Middle Class Tax Increase, Say Dems

Elizabeth Warren Can’t Dodge the Middle Class Tax Question Forever

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

Elizabeth Warren "Wealth Tax" was described by the WaPo editorial board as having "a certain authoritarian odor"

Supposed “Moderate” Democrat John Delaney Wants to Impose Carbon Tax on the American People

Klobuchar Suggests Capital Gains Tax Hike and “Doing Something” About TCJA

VIDEO: 2020 Democrats Will Raise Your Taxes

Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by GOP Tax Cuts

Julian Castro: “We’re going to have to raise taxes.”

Biden and Harris: Raise the Corporate Tax Rate

Biden tweet: Ignore the fact I’ve already called for middle class tax hikes

Kamala Harris: “I Will Reverse” Trump’s Tax Cuts

Kamala Harris Calls for Repeal of Tax Cuts Four Times in Three Minutes

Julian Castro Caught Lying about GOP Tax Cuts

NYT: Bidencare Will be Funded by “rolling back” GOP tax cuts

Kamala Harris: I Will Repeal “That Tax Bill”

Cory Booker: “I do support” Imposing Carbon Tax on Americans

Harris: “We are Going to Repeal That Tax Bill”

Biden: I Will Raise Corporate Tax Rate to 28%

Kamala Harris Continues to Lie about Tax Cuts

Jay Inslee: “Repeal the Trump Tax Cuts”

Biden Running Ads to “Repeal Trump’s Tax Cuts.”

VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts

Here’s what happens if Dems repeal tax cuts

VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA

Kamala Harris: When I Enter Office "I Will Repeal" the TCJA

Biden: “First thing I would do as President is Eliminate the President’s Tax Cut.”

Bernie Sanders claims people would be “delighted to pay more in taxes”

Biden: Tax Cuts Will be “Gone” If I’m Elected

Kamala Harris: I Will Repeal Tax Cuts “on day one”

Biden again says capital gains tax is “Much too Low”

Biden: Capital gains tax “much too low”

VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts

Biden: “First thing I’d do is repeal those Trump tax cuts.”

Joe Biden broke his middle class tax pledge

“Mayor Pete” Calls for Steep Tax Hike on Homes and Businesses

Kamala Harris Vows Repeal of Tax Cuts “on Day One”

Biden: “When I’m President, if God willing I am, we’re going to reverse those Trump tax cuts.”

Posted by Alex Hendrie on Friday, August 16th, 2019, 9:22 AM PERMALINK

ATR has released a letter in opposition to retroactive changes to the conservation easement deduction. As the Senate Finance Committee continues its inquiry into potential abuses of the conservation easement charitable deduction, they should reject retroactive tax increases that undermine confidence in the tax system and harm taxpayers that have relied on current law.

Read the letter here or below.

Dear Members of the Senate Finance Committee:

As the Committee continues its inquiry into potential abuses of the conservation easement deduction under IRC Section 170(h), I write to oppose any retroactive changes to the provision. ATR opposes retroactive tax increases that undermine confidence in the tax system and harm taxpayers that have relied on current law.

One legislative proposal referred to the Finance Committee, S. 170, has called for retroactive changes to the conservation easement deduction effective for tax years ending after December 23, 2016. Such an effective date would disallow deductions for donations made as far back as January 2016 – more than 3-1/2 years ago. ATR believes there is no basis for a retroactive change, especially since the conservation easement deduction has been reaffirmed and strengthened by Congress in recent years. Any changes to the deduction rules should be made prospectively only – for donations after the date of enactment.

Retroactivity is Bad Tax Policy

The tax code relies on consistency, certainty, and fairness. Taxpayers routinely make decisions based on a reasonable interpretation of the law with the expectation that the future changes to the law will not be applied looking backwards.

Legislation that retroactively changes the tax code would violate this principle by affecting activity (in this case irrevocable conservation easement donations made and resulting deductions claimed) that has already occurred. This would also undermine confidence in the tax system and discourage taxpayers from taking advantage of explicit tax incentives (e.g., for charitable contributions, business investments, and energy efficiency) if they fear Congress might retroactively eliminate these incentives in the future.

Generally, even when Congress has determined a statutory provision is being used inconsistent with its original intent, Congress has disallowed or modified the provision on a prospective basis. For instance, when paper manufacturers claimed a credit for mixing diesel with alternative biomass fuels, or “black liquor,” Congress disagreed with this outcome and repealed the credit prospectively.

The Conservation Easement Deduction Has Routinely Been Reaffirmed By Congress

The conservation easement deduction was first created in 1976 and allowed taxpayers to claim a deduction for the donation of conservation easements to qualified land trusts. In 2006, the deduction was temporarily enhanced with strong bipartisan, bicameral support to allow taxpayers to deduct up to 50 percent of their adjusted gross income and carry forward any unused deductions for up to 15 years. Congress made this enhancement permanent in 2015.

This legislative history demonstrates clear, bipartisan support for the conservation easement deduction as an incentive for taxpayers to conserve their property for future generations.

IRS Notice 2017-10 Does Not Justify Retroactive Legislation

Some have incorrectly suggested that IRS Notice 2017-10 released on December 23, 2016, would justify a retroactive legislative change as set forth in S. 170.

There is no justification for this claim. The IRS Notice required taxpayers and others to give the IRS additional information regarding certain conservation easement donations.

In no way did it change the law regarding the ability of taxpayers to take the conservation easement deductions.

Conclusion

Moving forward, lawmakers should conduct their review of potential abuses of IRS Section 170(h) in a way that gives stakeholders ample opportunity to weigh in on possible legislative solutions.

Any such legislative solutions should respect prior Congressional intent and avoid retroactive tax changes for those have relied on current law.

Onward,

Grover G. Norquist
President, Americans for Tax Reform

Photo Credit: Henry Burrows

Posted by John Kartch on Thursday, August 15th, 2019, 11:00 AM PERMALINK Follow @johnkartch

Below are several examples of tax reform good news in Virginia. (Additions to this list can be sent to jkartch@atr.org)

sweetFrog Frozen Yogurt (Richmond, Virginia) - growing exponentially — adding new stores, serving countless new customers.

I can certainly speak for my business, which has never seen better days. In large part due to the federal tax overhaul, sweetFrog Frozen Yogurt is growing exponentially — adding new stores and serving countless new customers.

In 2009, sweetFrog opened its first store in Richmond. Less than a decade later, we now have more than 350 locations worldwide. By the end of the year, we expect to have more than 400 open locations.

During the first quarter of 2018, sweetFrog franchise owners opened new locations in states including Maryland, Tennessee and Virginia, so it’s undeniable that federal tax cuts had a positive effect. –September 21, 2018 – The Viriginia Pilot ( Guest Columnist Patrick Galleher CEO of sweetFrog Frozen Yogurt)

K-VA-T Food Stores (Abingdon, Virginia) - Increased employee wages, expanded employee benefits:

Tax reform enabled K-VA-T Food Stores, the parent company of Food City, to give raises to 25% of its workforce, a total boost to the payroll of $1 million. It also improved its benefits package for employees and can continue some health benefits that had been under stress due to soaring health insurance costs. - April 13, 2018, Augusta Free Press article excerpt

Control Automation Technologies Corporation (Providence Forge, Virginia) - Expansion doubling current facility size, hiring new employees, purchasing new equipment:

Control Automation Technologies Corporation (CATC) has announced the expansion of its Virginia Laboratory as it plans to double the size of its existing facilities in New Kent County, VA.The expansion will include offices, laboratories, and a logistics warehouse to accommodate its growing customer base as well as new equipment, services and employees.

With the recent economic boom, expansion was inevitable", said Mike Watson, the company's founder and CEO. Watson also touted regulation and tax reform as key catalysts for its decision to expand now. - August 1, 2018, Control Automation Technologies Corporation press release excerpt

EnerVest (Abingdon, Virginia) - Employee bonuses:

EnerVest, an oil and gas company with a presence in Southwest Virginia and around 95 employees in the Commonwealth, paid more in bonuses at the end of 2017 and provided a larger average pay increase to its employees than it had in prior years. The company attributed part of its decision to the lift provided by tax reform. - April 13, 2018, Augusta Free Press article excerpt

Bay Electric Co., Inc (Newport News, Virginia) – Hiring new employees and purchasing new equipment:

Business owners at the event said the recent tax law has allowed them to increase capital investment, hire more people and give bonuses.

“This year, we are hiring 12 electricians and have added two project managers to our senior team,” John Biagas, president and chief executive of Bay Electric Co., told the audience. “Plus, the new tax law accelerated our plan to invest over $500,000 in new trucks and equipment.” – April 17, 2018 Morning Consult article excerpt

Payne Trucking (Fredericksburg, Virginia) – Bonuses of $750 for employees of at least five years; $500 for employees of at least a year; $250 for employees of at least six months:

A longtime Fredericksburg-area business owner is giving 81 employees a one-time bonus as a result of the Tax Cuts and Jobs Act passed by Congress in December.

“We were so pleased with the tax relief that we got that we had to share it,” said Danny Payne, head of Payne Trucking Co. “There were tremendous savings in tax relief.”

Employees at the company’s locations in Massaponax and Dundalk, Md., who’ve worked for Payne at least six months received an extra $250 in their paycheck Jan. 26. Those who’ve worked there for at least a year got $500 and those who’ve been there at least five years got $750. Senior management and part-timers weren’t eligible. – Feb. 8, 2018 Fredericksburg.com article excerpt

Deckscapes (Catharpin, Virginia) - Employee pay raises, new bonus structure, starting employee IRAs, purchasing new equipment:

“With repealing of regulations and renewed optimism, business has grown considerably over the last year and now with this tax cut, gee-whiz, just the other day we went out with a minimum of 7 percent pay raise to our employees, some of them got higher. We changed our bonus structure, we’re starting IRAs for all the employees, and went out and purchased a bunch of trucks.” - April 17, 2018 Tax Talk Roundtable, Gary Desilets, Owner of Deckscapes

Sports Clips -- Debra Sawyer, franchise owner (Richmond, Virginia) - Expanding operations, hiring new employees:

“I’m a franchisee. I have 20 open locations and I have my 21st location that will open sometime this summer. Earlier this year I already bought out one of my friends in Florida. She wanted to relocate to the Carolinas to be closer to her kids. So I’m very grateful that the new tax law allows us that clear opportunity to write off not only newly acquired assets that are a brand new purchase but also ones that are used when you’re buying an existing business out from someone else…And then after the [tax reform] bill was passed and I was kind of looking at my tax situation another opportunity came to me to go for my 22nd location. I went ahead and took that because I was comfortable with the tax write offs that I could do. That lease is with my attorney right now for review and I’m hoping to get that location open as well which will let me promote one of my assistant managers to manager, and it will also let me hire at least ten more employees.” - April 17, 2018 Tax Talk Roundtable, Debra Sawyer, Sports Clips Franchisee

Dollar Tree, Inc. (Headquarters in Chesapeake, and many retail locations statewide) – $100 million investment in raising base wages and enhanced benefits including maternity leave:

As noted previously, the Company benefited in the fourth quarter and fiscal 2017 with respect to the TCJA. The Company expects to continue to benefit going forward and currently estimates the benefit to be approximately $250 million for fiscal 2018. As a result of the estimated cash benefit, the Company plans to invest approximately $100 million through the following actions:

Invest in stores with more hours, including training for associates,
Invest in people with increased average hourly rates,
Add Family Dollar eligible associates to the Defined Contribution Plan starting in fiscal 2017 and increase contributions in fiscal 2018, and Establish paid maternity leave for eligible associates -- March 7, 2018 Dollar Tree, Inc. press release excerpt

Huntington Ingalls Industries (Newport News, Virginia) -- $500 bonuses:

Workers at Huntington Ingalls Industries will receive a one-time bonus in the company’s response to the federal Tax Reform Act.

A $500 bonus will be given to all employees except for those who work through an incentive plan.

HII is the parent company of Ingalls Shipbuilding, which employs about 11,500 workers and is the largest manufacturing employer in Mississippi.

HII President and CEO Mike Petters announced the news Thursday in a letter provided to the Sun Herald.

Huntington Ingalls also made a significant incremental contribution to its pension fund—adding $200 million—as a way of providing for its employees’ futures. While many pension funds across the nation face insolvency, Huntington Ingalls is well funded.

The bonus one of several contributions the company plans to make, according to Petters’ letter. – Feb. 15, 2018 Sun Herald article and May 8, 2019 National Association of Manufacturers Shop Floor Blog

Stafford Bounce n Play, LLC (Stafford, Virginia) -- $1,000 mid-year bonuses for all employees:

By working to pass tax reform, these representatives helped my wife and me to make positive steps in both our business and in our relationships with our employees. Stafford Bounce n Play strives to be the best we can be, ensuring that our employees feel valued and appreciated day-in and day-out.

Thanks to the tax savings the new plan provided, we were able to do so by distributing a $1,000 mid-year bonus to each of the hardworking people who work for us. This kind of investment in our employees—and in-turn our community—is the kind of action that Virginia and America needs for long-term prosperity. We expect to see growth this year because of our U.S. representatives’ efforts. – Nicholas Bluma, Stafford Bounce n Play, LLC, March 9, 2018 Inside NOVA

Virginia American Water Company (Alexandria, Virginia) – The utility will pass tax cut savings on to customers:

The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities. Utility rates paid by customers are based on the cost of service.

To preserve the savings from this tax cut for customers, the Commission ordered all applicable Virginia utilities to account for the tax savings by accruing a regulatory liability on the utility’s books. The tax savings will thus be quantified and available to be passed on to customers in subsequent rate proceedings.

The utilities subject to the Commission’s order serve millions of Virginia residential and business customers. They include Virginia-American Water Company; Aqua Virginia, Inc.; Washington Gas Light; Columbia Gas of Virginia; Virginia Natural Gas; Roanoke Gas; Atmos Energy; Southwestern Virginia Gas; Appalachian Natural Gas Distribution; Kentucky Utilities; Appalachian Power Company; and Virginia Electric and Power Company. –January 8, 2018, Virginia SCC Press Release

Aqua Virginia, Inc (Rockville, Virginia) – The utility will pass tax cut savings on to customers:

Columbia Gas of Virginia (Chester, Virginia) – The utility will pass tax cut savings on to customers:

Virginia Natural Gas (Virginia Beach, Virginia) – The utility will pass tax cut savings on to customers:

Roanoke Gas (Roanoke, Virginia) – The utility will pass tax cut savings on to customers:

Appalachian Natural Gas (Abingdon, Virginia) – The utility will pass tax cut savings on to customers:

Virginia Electric and Power Company (Richmond, Virginia) – The utility will pass tax cut savings on to customers:

Nexus Services, Inc. (Verona, Virginia) – 5% raise for all employees; 200 more workers will be hired in 2018:

All Nexus Services, Inc. employees will receive a 5% raise, starting in January 2018, CEO Mike Donovan announced today. Also, Nexus unveiled plans to hire another 200 workers over the course of 2018 – doubling the size of Nexus Services, Inc. workforce nationwide. Many of the new jobs will be created in Virginia's Shenandoah Valley and other jobs will be in San Juan (Puerto Rico), Hackensack (NJ), Ontario (CA) and other sites nationwide.

The 5% boost in pay will come on top of the increased take home pay that workers will enjoy due to lower Federal income tax rates for individuals.

The more than 200 new jobs Nexus plans to create over the next 12 months will each have a "living wage" and provide full benefits including, health, dental, vision, and retirement plans.

A combination of an improved business outlook for 2018 and tax reform by Congress has enabled Nexus Services, Inc. to make these generous changes. – Dec. 21, 2017 Nexus Services Inc. press release

CarMax Inc. (Headquarters in Richmond, and 10 retail locations statewide: Charlottesville, Dulles, Fredericksburg, Harrisonburg, Lynchburg, Newport News, Virginia Beach, Midlothian, Glen Allen) – $250 - $1,500 bonuses:

The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company. – Feb 23. 2018, EPR Retail News article excerpt

RDR, Inc. (Centreville, Virginia) – Bonuses of up to $1,000 for all 125 employees:

RDR, Inc. A professional services firm headquartered in Centreville, Virginia with a Branch office in Southern Pines, North Carolina and individual employees nationwide is announcing that it will be paying bonuses to each of its 125 employees as a result of anticipated 2018 tax savings from the recently passed Tax Cuts and Jobs Act of 2017.

It has been said that all U.S. workers would see financial benefits in February from the tax cuts that passed in December and we are determined to make this true for all our employees right now! – Jan. 19 2018, RDR, Inc. press release excerpts

Great Southern Wood Preserving, Inc. (Wood treatment plant in Rocky Mount, Virginia) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, and scholarships; supply store location in Rocky Mount, Virginia:

Great Southern Wood Preserving, Incorporated, has begun an active and ongoing process to increase employee benefits by reinvesting its tax savings in its people, the company has announced. The company expects full implementation to take place in 2018.

In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.

For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.

“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”

Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] -- March 29, 2018 Great Southern Wood Preserving, Inc. press release

Eberle Communications Group, Inc. (McLean, Virginia) -- Increased 401(k) match from 25% to 50% for all 45 employees.

Bank of the James (Lynchburg, Virginia) - Raised base wage to $15 per hour for employees with more than one year of service.

Capital One (McLean, Virginia) - Base wage raised to $15 per hour. The news was announced to associate on Tuesday January 9, 2018.

First Sentinel Bank (Richlands, Virginia) – $750 cash tax reform bonus:

A tax reform bill signed by Pres. Donald Trump in December 2017 has resulted in a local company giving employees a one-time bonus.

Called a Tax Cut Bonus, First Sentinel Bank, based in Richlands, Va., is sharing its savings from tax reform with employees.

The board of directors of First Region Bancshares and its subsidiary, First Sentinel Bank, made the announcement Friday that “all employees of the bank will receive a one-time cash bonus of $750 each in recognition of their continued hard work, dedication, and contributions to the ongoing success of the bank.” – March 26, 2018 Bluefield Daily Telegraph article excerpt

F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:

Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.

"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President Neil Hayslett. "Rather than just banking all that, so to speak, we wanted to share it with the employees."

The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.

Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt

First Bank and Trust Company (Abingdon, Virginia) -- Base wage raised to $15 per hour.

Information First, Inc. (Manassas, Virginia) $500 cash bonus for all 15 employees.

Altria Group Inc. (Richmond, Virginia) – $3,000 bonus to approximately 7,900 non-executive level employees, a total of $24 million in bonuses; increased charitable contributions:

Altria Group Inc., one of the Richmond area’s largest private employers, says it is giving all of its non-executive employees a one-time $3,000 bonus, thanks to the corporate tax cut passed by Congress in December.

The Henrico County-based parent company of cigarette maker Philip Morris USA said it also plans to set aside $35 million over three years for philanthropic programs in the communities where it has operations, focusing particularly on nonprofit programs in youth development and workforce preparedness. The money is in addition to the roughly $55 million a year that Altria typically donates to philanthropy, a company spokeswoman said.

The bonus to employees is expected to be paid out this month and will amount to a total of $24 million for the company’s approximately 7,900 non-executive employees.

About 3,600 of those employees are in the Richmond area, where the company has a cigarette factory in South Richmond, its headquarters in Henrico, a research center in downtown Richmond and other operations.

“Our employees drive our success,” said Marty J. Barrington, the company’s chairman and CEO, in a statement. “This bonus is one way we say thank you for everything they do to make Altria a business leader and a leader in our communities.”

Altria is not the only company that has announced one-time bonuses since the tax reform bill was passed in late December. Others include Walmart, Comcast, AT&T, Walt Disney Co., Starbucks, American Airlines and Bank of America, with bonuses mostly of $1,000.

Altria announced the bonus to its employees Thursday afternoon, after the company reported its fourth-quarter and full-year earnings for 2017.” – Feb. 1, 2018 Richmond Times- Dispatch article excerpt

Valley Bank (Harrisonburg, Virginia) -- $1,100 bonuses for employees who work more than thirty hours a week, $750 bonus for employees who work under thirty hours a week; charitable contribution of $250,000:

The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.

Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750.

The Timberville-based bank also announced a special dividend to shareholders and the formation of a community fund. During a scheduled training session, the company awarded $250,000 to three community foundations.

Altogether, Hayslett said $1.1 million was given out. – Feb. 20, 2018 WHSV 3 news article excerpt

F&M Bank (Timberville, Virginia) – Tax reform bonuses of up to $1,100:

Employees of F&M Bank were surprised on Tuesday to learn they would receive a bonus, which the institution attributes to additional earnings expected as a result of the GOP tax plan.

The GOP tax plan cut the corporate tax rate from 35 percent to 21 percent.

Those who work more than 30 hours a week were given a one-time bonus of $1,100 and those who work less were handed $750. – Feb. 20, 2018 WHSV 3 article excerpt

Walmart – Virginia employees at 138 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

AT&T -- $1,000 bonuses to 2,528 Virginia employees; Nationwide, $1 billion increase in capital expenditures:

Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.

Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release

T.J. Maxx – 36 stores in Virginia – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

Associates

A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
Instituting paid parental leave for eligible Associates in the U.S.
Enhancing vacation benefits for certain U.S. Associates

Communities

Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt

Home Depot -- 49 locations in Virginia, bonuses for all hourly employees, up to $1,000.

Lowe's --9,000+ employees at 69 stores in Virginia. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

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

In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.

“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.

“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10, 2018 Waste Management Inc. press release excerpt

Ryder (14 locations in Virginia) – Tax reform bonuses.

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

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

Apple (Apple store locations in Arlington, Fairfax, McLean, Norfolk, Reston, Richmond, Virginia Beach, Woodbridge) - $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.

McDonald’s (430+ locations in Virginia) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:

McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.

The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.

“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”

Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:

Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.

“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”

After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt

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

Starbucks Coffee Company (Multiple locations in Virginia) –$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 Virginia) – $1,200 bonuses for full-time employees, $500 for part-time employees.

FedEx (Multiple locations in Virginia) – Accelerated and increased compensation; pension plan contributions:

“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:

Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.

FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release

Wells Fargo – 264 locations in Virginia; Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

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

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