Pennsylvania Examples of Tax Reform Good News

Posted by John Kartch on Tuesday, December 3rd, 2019, 9:20 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 Pennsylvania. (Additions to this list can be sent to jkartch@atr.org)

Hudson Facades (Linwood, Pennsylvania) – $3,000 in every factory worker’s 401(k); increase base wage pay:

"We raised wages, yes,” said Allen Cohen, managing partner of New Hudson Facades, of the approximate 5 percent raise given to employees. “In addition to that, Related Companies [a partner company] has given every factory employee, $3,000 in their 401(k).” – Feb. 20 2018, WHYY article excerpt

Glass & Sons Collision Center (Reading, Pennsylvania) – $1,000 tax reform bonuses to employees.

Guy Chemical Company Inc. (Somerset, Pennsylvania) – Increased bonuses, increased wages, and investments in new equipment – a new forklift, new laboratory furnishings, updated computer equipment, and new software system:

Guy Chemical is increasing bonuses between 25 – 50%, increasing wages and investing in new equipment. So far in 2018 we bought a new forklift, furnished a new laboratory and updated some of our computer equipment. We have also invested in a new ERP software system to run our company. – April 4, 2018 statement to Americans for Tax Reform from Guy Berkebile, President of Guy Chemical Company Inc.

Ellwood Group (Ellwood, Pennsylvania) - Facility expansion:

The tax reform is incentivizing the Ellwood Group to invest $10 million into the plant, including an expansion that will house a massive robot.

Ellwood Group CEO David Barensfeld says 500 people currently work at the plant; 200 of them making military equipment. "Two-thousand-pound capacity to automatically transfer unfinished bombs, so that they can be finished and sent to the Air Force... And, we expect to expand employment by, perhaps, 10 percent in the next short while, because of the increased demand for bombs." - August 9, 2018, YourErie.com article excerpt

Dollar Bank (Pittsburgh, Pennsylvania) - $2,000 permanent raises for employees making $60,000 or below:

Four months after most banks moved to give employees some of the anticipated savings from the Tax Cuts and Jobs Act, the $8.3 billion-asset Dollar is giving workers with annual salaries at or below $60,000 a $2,000 raise. About 60% of Dollar’s 1,300-person workforce will get raises, Senior Vice President Joseph B. Smith said Monday.

CEO Jim McQuade announced the raises May 2 in an in-house video message. They went into effect May 1. - May 7, 2018, American Banker article excerpt

Erie Insurance (Erie, Pennsylvania) – $1,000 bonuses; $1,000 contribution to employees’ 401(k) accounts:

Erie Insurance CEO Tim NeCastro called an all-employee meeting Wednesday to deliver a bit of good news — a few million dollars worth of good news, in fact.

Like many corporations, the company was expected to benefit from the new tax code that President Donald Trump signed into law in December.

NeCastro has announced that the company will share those benefits with its employees by giving a $1,000 cash bonus to permanent full-and part-time employees.

In addition, the company will contribute $1,000 to the account of any employee who has a 401 (k) retirement savings plan. – March 23 2018, Go Erie article excerpt

Comcast (Philadelphia, Pennsylvania) -- $1,000 bonuses to 100,000 employees; at least $50 billion investment in infrastructure in next five years

“Based on the passage of tax reform and the FCC's action on broadband, Brian L. Roberts, Chairman and CEO of Comcast NBCUniversal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.” – Comcast press release

1st Summit Bank (Johnstown, Pennsylvania) -- $1,000 bonuses to full-time employees; salary raises; increased charitable donations.

AccuWeather (State College, Pennsylvania) – Tax reform bonuses for all employees. (Approx. 450 – 500 employees):

“The bonuses are possible due to the company's robust financial performance in 2017 and strong confidence in the growing U.S. and global economy now that the Tax Bill has passed.” – Dec. 26, 2017 AccuWeather press release

Cranston Material Handling Equipment Corp. (McKees Rocks, Pennsylvania) – Because of the Tax Cuts and Jobs Act, the company was able to purchase new equipment, build a new website, and invest in training:

As president of the western Pennsylvania company, Cranston was there to discuss the benefits of the Tax Cuts and Jobs Act for small business. Founded in 1957 and an NFIB member since 1994, Cranston Material Handling Equipment Corporation sells material handling products.

“Like many business owners, I pay quarterly estimated taxes,” Cranston testified. “In order to pay those taxes, I take cash from my company each quarter. Those payments suck my working capital right out of my business quarter after quarter. Under the Tax Cuts and Jobs Act’s new Section 199A, I now qualify for a 20 percent deduction on my pass-through income. In real terms, this means I will be able to keep between $1,200 and $2,500 a quarter in my business that I would otherwise have paid in taxes. The ability to keep $5,000 to $10,000 a year in my company is a big deal to a small business owner like me.”

As of January, Cranston has focused on expanding into a new product line. Cranston will purchase new equipment, invest in training, and build a new website, according to his testimony. He credited the tax act for his better financial position to self-fund this new product.

“I can tell you that my optimism that the economy has a real opportunity to continue improving has dramatically increased,” Cranston testified.

Cranston testified in front of Senate Finance Committee Chairman Orrin Hatch, alongside Douglas Holtz-Eakin, president of the American Action Forum, David Kamin, professor of law at the New York University School of Law, and Rebecca Kysar, professor of law at the Brooklyn Law School.

“The Tax Cuts and Job Act has not only reduced taxes for businesses like mine; it has created an environment where more business owners feel confident to take the cash from the tax savings and invest it back into their businesses,” Cranston told lawmakers. “For these reasons, I believe the Tax Cuts and Job Act is spurring business investment and therefore has set the stage for increased economic growth for years to come.” – April 25, 2018, NFIB article.

Centric Financial Corporation, Inc. (Harrisburg, Pennsylvania) - Increasing employee wages, hiring new staff, investing in new technology, expanding services offered to customers:

With the support of the Bank's board of directors and the corporate tax savings from the Tax Cuts and Jobs Act signed into law on December 22, 2017, Centric Bank President and CEO Patricia (Patti) A. Husic unveiled a suite of bank-wide initiatives to announce post-tax reform benefits to share and reinvest savings with customers, employees, and the community.

Effective July 1, 2018, Centric Bank is committed to:

Increasing salaries of entry-level personnel to $15 per hour, resulting in raises for more than 50 Centric Bank employees in the operations, credit, and branch areas of the Bank and who are on the frontlines of serving customers.
Providing raises to employees who are near entry-level wages, resulting in a 6% increase.
Hiring additional team members in business development and commercial lending to expand upon the positive, pro-growth relationships with small businesses in the Bank's market areas, and meet the increased lending demand from economic optimism and business growth.
4. Investing between $3 and $4 million in technology initiatives over the course of five years, beginning with strategic goals set forth by Centric Bank's Chief Information Officer & Director of Operations. Innovations, expanded customer initiatives, multichannel distribution, digitization, service development, and customer experience personalization will be areas of focus.
5. Expanding the physical footprint of Centric Bank to include additional full-service technologies in our financial centers for these markets over the next 3 to 4 years.

- August 17, 2018, Centric Financial Corporation, Inc. press release

American Bank (Allentown, Pennsylvania) – $1,000 bonuses for 60 employees:

“President and CEO Mark W. Jaindl stated, “Beginning in 2018, we expect to see benefits from the recent tax reform due to lower corporate tax rates. As we celebrate the holiday season and prepare to close out another year of growth at American Bank, the Board of Directors and senior management want to give back to our team members who are directly responsible for our success.”

Mr. Jaindl continued, “We expect the actions taken by Congress and the President will have a material positive impact on growth throughout the country. As a result, we anticipate our hiring efforts will increase in 2018.” – Dec. 22, 2017 American Bank press release

Pike County Light & Power Company (Milford, Pennsylvania) - the utility will pass along tax reform savings to customers:

The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.

Additionally, the PUC will consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018. In those situations, the Commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility. – May 17, 2018, Pennsylvania Public Utilities Commission Press Release

PPL Electric Utilities Corporation (Allentown, Pennsylvania) - the utility will pass along tax reform savings to customers:

Blair Strip Steel Company (New Castle, Pennsylvania) -- The Tax Cuts and Jobs Act allowed the company to raise wages, hire new people, and buy new equipment.

“I want to thank Mike Kelly for his role in the successful effort to reduce taxes on behalf of the company and it’s employees, said Bruce Kinney, president and CEO of Blair Strip Steel Company. His efforts are a key part of rebuilding and sustaining a healthier manufacturing climate in Pennsylvania and across the United States.” -- August 6, 2018 NAM Shopfloor Blog

Wellsboro Electric Company (Wellsboro, Pennsylvania) - the utility will pass along tax reform savings to customers:

West Penn Power Company (Greensburg, Pennsylvania) - the utility will pass along tax reform savings to customers:

PECO Energy Company (Philadelphia, Pennsylvania) - the utility will pass along tax reform savings to customers:

National Fuel Gas Distribution Corporation (Erie, Pennsylvania) - the utility will pass along tax reform savings to customers:

Peoples Gas Company LLC (Pittsburgh, Pennsylvania) - the utility will pass along tax reform savings to customers:

Peoples Natural Gas Company LLC-Equitable Division (Pittsburgh, Pennsylvania) - the utility will pass along tax reform savings to customers:

UGI Central Penn Gas Inc. (Shippensburg, Pennsylvania) - the utility will pass along tax reform savings to customers:

UGI Penn Natural Gas Inc. (Valley Forge, Pennsylvania) - the utility will pass along tax reform savings to customers:

UGI Utilities Inc. (Valley Forge, Pennsylvania) - the utility will pass along tax reform savings to customers:

Fairfield Inn & Suites (Slippery Rock, Pennsylvania) (Neema Hospitality Franchise) - New location acquired, renovations

$700,000 investment in renovation and upgrades due to tax reform. - August 3 2018, call with Americans for Tax Reform

Comfort Inn (Mechanicsburg , Pennsylvania) (Neema Hospitality Franchise) - Acquired hotel, renovations:

$400,000 investment in renovation and upgrades due to tax reform - August 3, 2018, phone call with Americans for Tax Reform

Pennsylvania-American Water Company (Hershey, Pennsylvania) - the utility will pass along tax reform savings to customers:

Pennsylvania-American Water Company-Wastewater (Hershey, Pennsylvania) - the utility will pass along tax reform savings to customers:

Citizens’ Electric Company of Lewisburg (Lewisburg, Pennsylvania) – the utility will pass along tax reform savings to customers:

Beneficial Bancorp, Inc. (Philadelphia, Pennsylvania) -- base wage raised to $14 per hour; $1,000 bonuses for all AVP Level employees and below; 4.5% employer contribution to 401(k) plans:

Following the passage of H.R. 1 and the anticipated savings from lower future taxes, we announced a special $1,000 bonus paid to over 600 employees and enhanced our medical coverage to our entire employee base. We also evaluated the compensation of our hourly employees and raised our minimum hourly rate to $14.00. -- Feb. 1, 2018 Beneficial Bancorp Inc. press release

Customers Bank (Wyomissing, Pennsylvania) – increased charitable contributions of $1 million:

Customers Bank will also increase its charitable giving by $1 million in 2018, and will continue to invest in its talent, who all already earn at least $15 per hour – a rarity in banking. “By increasing our charitable giving and investing in our talent, we’re investing in the growth of the communities we serve,” said Sidhu. “These tax savings will ensure that we can put more money in the hands of communities, families, and small business owners. We expect that this bill will be positive for growth.” – Jan. 5, 2018 Customers Bank press release

Fidelity Bank (Dunmore, Pennsylvania; not to be confused with Fidelity Investments) – $1,000 bonuses for all full-time employees making less than $100,000; $500,000 in charitable donations:

Fidelity Bank is pleased to announce additional investments in its Bankers and communities made possible by the passing of the recent tax reform bill. Fidelity Bank’s Board of Directors and Executive Management Team have decided to share in the benefits of the lower corporate tax burden by:

Providing a one-time cash payment of $1,000 to all full-time Fidelity Bankers. This bonus was paid to all Fidelity Bankers below $100,000 in annual compensation.
Taking a $500,000 contribution to the newly created Fidelity D & D Charitable Foundation that will support the local philanthropic and community needs. The newly formed and funded foundation creates a sustainable way to give back to the communities Fidelity Bank serves.

“The tax reform law creates an opportunity to reward our most valuable asset, our Bankers, who are working hard each day to serve our clients, building strong relationships in our communities, and creating long term shareholder value. The Fidelity Bankers put forth perfect effort to position Fidelity Bank as the best bank,” said Daniel J. Santaniello, President & Chief Executive Officer. -- Jan. 2 2018, Fidelity Bank press release

Kraft Heinz Company (Pittsburgh, Pennsylvania and Chicago, Illinois) – $1.3 billion pre-funding of post-retirement benefit plans; $800 million in capital expenditures; $300 million in strategic investments:

“Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives. This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans.” – Feb. 16 Kraft Heinz statement by David Knopf, CFO

F.N.B. Corporation (Pittsburgh, Pennsylvania) – extra 401(k) contributions to employees totaling $1 million; base wage raised to $15 per hour; increased charitable donations:

F.N.B. Corporation (NYSE:FNB) today announced a significant financial commitment to both its employees and the communities it serves relating to the signing of the Tax Cuts and Jobs Act of 2017.

As an investment in its workforce, FNB plans to raise the minimum hourly wage for its employees to $15 by the end of 2019, accelerating an ongoing initiative to elevate hourly wages. Paying competitive wages will continue to be a focus for the Company in attracting and retaining the highest caliber employees to serve customers, which translates into strong financial performance and benefit to its shareholders. FNB will also provide a discretionary, one-time 401(k) contribution, totaling $1 million, to the vast majority of employees based upon analysis of compensation levels and eligibility.

During the first half of 2017, FNB also made a $5 million contribution to its Foundation, which was established to provide grants for a variety of non-profit entities throughout its multi-state footprint. Moving forward, these funds will be utilized to support causes within its service area. This contribution was also part of a broader community benefit plan focusing on charitable giving, community development investments and lending efforts serving financially-vulnerable and historically underserved populations.

“We are pleased that the current tax law changes present the opportunity for substantial benefits for our clients, employees, communities and shareholders,” said Vincent J. Delie, Jr., Chairman, President and Chief Executive Officer of F.N.B. Corporation. “Increased investment in our employees and in improving the quality of life within our communities creates an enhanced experience for our clients and superior long-term shareholder returns.” – Jan. 18, 2018 F.N.B. Corporation press release

Almo Corporation (Philadelphia, Pennsylvania) – $1,000 incremental bonus, capital improvement, and purchasing a new operating system:

Almo, the Philadelphia-based appliance, CE, housewares and pro A/V distributor, is investing its savings from the Trump administration’s new tax legislation in its employees and infrastructure.

President/CEO Warren Chaiken said Almo’s newly lowered tax structure will allow it to reward its employees with an incremental bonus of $1,000, as “they are the greatest asset we have to offer as a business.”

The capital improvements include:

a new 300,000-square-foot distribution center in Philadelphia to cover the Mid-Atlantic region, plus warehouse relocations in Nevada and Ohio to larger facilities;

an ongoing headquarters renovation that includes a reconfigured first floor and a new 7,000-square-foot second floor that can accommodate 65 additional employees;

a new central office in Ft. Lauderdale for the company’s global operations and hospitality and new business groups; and

a new, larger headquarters office in Baltimore for the Almo Professional A/V division that will allow for expansion and growth. -- March 9 2018, Twice article excerpt

Sewickley Spa (Sewickley, Pennsylvania ) -- Pay raises; increased capital expenditures:

For the past decade, Sewickley Spa’s 13 employees didn’t receive annual raises.

With economic pressures forcing cuts at the business since the Great Recession of 2007-09, owner Dorothy Andreas said she couldn’t afford pay hikes — though she still managed to provide a bonus every Christmas.

But on Dec. 20 — the day Congress gave final approval to the Tax Cuts and Jobs Act — Ms. Andreas decided to “pull the trigger” on raises of 2 percent to 5 percent and bonuses that averaged 2.5 percent.

“My staff needed a morale booster,” said Ms. Andreas. She welcomes the federal tax changes because she expects them to translate to savings she can pump back into spending for new equipment and at least two more employees.

In recent years, her luxury spa — which offers massages, facials, and other salon treatments for men and women — has delayed investments in things like updated computer systems and pedicure chairs.

“I just want to put it all back into my company,” she said. “It feels like the government wants to see small business succeed and it’s like a breath of fresh air into a very stale climate.” -- Feb. 5 2018, Pittsburgh Post-Gazette article excerpt

Fulton Financial Corporation (Lancaster, Pennsylvania) – base wage raised to $12 per hour; bonuses in the form of an additional week of pay for 75% of the 3,700 employees; $2 million in increased charitable donations:

Fulton Financial Corporation (NASDAQ: FULT) (“Fulton”) announced today that during 2018, it will invest an additional $2 million in the communities it serves as part of its Fulton Forward initiative; and the company will raise the minimum wage paid to employees in addition to providing an additional week of pay at year-end to employees who do not participate in an incentive plan.

“At Fulton, we understand that our future is connected to the communities where we operate and the employees who serve them,” said E. Philip Wenger, Chairman and CEO of Fulton Financial. “It makes sense for us to share the benefits of tax reform, and we’re very pleased to be able to give back to our communities and employees.”

As a result of the recently enacted Tax Cuts and Jobs Act of 2017, Fulton will commit an additional $2 million as part of its Fulton Forward Initiative, which broadly supports communities across the company’s footprint. The initiative was designed to support underserved communities to create affordable housing, provide financial literacy and education programs, and to accelerate economic development.

In addition to expanding its community support, Fulton also will raise its minimum wage to $12 per hour. The company also plans to provide an additional week of pay in 2018 to employees, who are not participants in other variable-award plans. It is expected that 75% of Fulton’s approximately 3,700 employees will receive this additional week of pay.

“Giving is a cornerstone of our culture, and we already provide thousands of volunteer hours and millions of dollars of existing support to community organizations,” said Wenger. “I am thrilled that our communities and employees will benefit from the savings we will realize from the changes in our corporate tax rate.” – Jan. 18, 2018 Fulton Financial Corporation press release

ISI Financial Group (Lancaster, Pennsylvania) -- $2,000 bonuses for all employees:

At year ahead staff planning meeting in January I proudly announced to all of our staff that because of the new tax law, that ISI is happy to share the tax savings and will providing to all staff members a $2000 bonus.

When announced, the staff were all taken back, very surprised and EXTREMELY grateful.This welcome tax cut for ISI Financial Group and most other companies and individuals is a welcome and prudent step toward freeing up capital for all of us to invest into our economy and great country. I, Tim Decker, personally challenge other companies to share this gift with their employees as well. – Tim Decker, President and CEO

Sundance Vacations (Wilkes-Barre, Pennsylvania) -- $125,000 in employee tax reform bonuses:

"Sundance Vacations announced a decision to award bonuses to its employees based on the GOP tax reform bill that was recently signed into law by President Trump. Sundance Vacations president John Dowd cited two tax reform factors that he believes will positively impact company profits. “Additional take home pay for many Americans will likely lead to robust vacation sales for the company this year,” projects Dowd. “And the ability to deduct some business expenses upfront rather than depreciate them over multiple years will be a major factor for company profitability.” Sundance Vacations decided to award individual bonuses to staff members similar to corporate giants like Apple and AT&T. The immediate bonuses are in addition to the reduction in tax withholding that Americans will benefit from beginning in February. The Sundance bonuses will total over $125,000. Hundreds of other companies are also issuing bonuses nationwide which Dowd believes will inject more spending into the US economy.

Congressman Barletta commented, “The results have been clear that our tax plan will provide more opportunity for all Americans. Businesses will invest in workers and equipment, generating the historic growth that has been dormant in our nation for far too long. Americans will keep more of their paychecks, allowing them to pay bills, save for their children’s education or pay off lingering bills. I am very excited for companies in Pennsylvania like Sundance Vacations as they award bonuses because of our tax plan. The future is very bright for Pennsylvania.” – Jan. 30 2018, Sundance Vacations press release

NexTier Bank (Butler, Pennsylvania) – $1,000 bonuses for all employees; tuition reimbursement on job training; wage raises for hourly employees:

NexTier Bank, N.A. (“NexTier”), today announced an investment in its workforce with a one-time bonus of $1,000 for all employees as a result of the tax reform bill passed by the U.S. Congress and signed by President Trump. This is in addition to annual bonuses paid in late 2017.

“Our employees are the key to our success and we are pleased to share this tax savings with our team. NexTier’s employees work hard to meet the needs of our customers, build relationships, and give back to the communities we serve. It’s an honor to reward them for their efforts,” stated CEO, Clem Rosenberger.

In addition to this one-time payout, NexTier is committed to providing educational and career advancement opportunities to employees on an ongoing basis with educational benefits such as tuition reimbursement, internal training, and a variety of industry training opportunities. NexTier will also make adjustments to the wages of hourly employees throughout the year.

“The tax reform bill not only allows us to invest in our employees, but to accelerate lending to small businesses, increase hiring, and enhance our charitable giving. It’s a win-win,” continued Rosenberger. “We fully expect to see significant growth, not only as a company, but throughout the local and national economy as a result of this historic legislation.” – Jan. 12, 2018 NexTier Bank press release

Noah Bank (Elkins Park, Pennsylvania) – $1,500 cash bonus to employees:

Noah Bank, a Pennsylvania-chartered community bank, has announced today that its Board of Directors has elected to provide all employees with a one-time $1,500 cash bonus thanks to the passage of new tax legislation.

CEO Edward E. Shin stated, "We are pleased to have the opportunity to reward employees with salary increases and bonuses thanks to these tax cuts. We are proud of our dedicated and enthusiastic employees who have made Noah Bank a success." Mr. Shin added that, "The new legislation will continue to benefit Noah Bank, our employees, our shareholders, and our customers as we progress and grow."

Congress approved tax reform legislation that reduced the corporate tax rate from 35% to 21%. Noah Bank intends to pay out the bonuses on February 8.” – Feb. 2 2018, Noah Bank press release

PNC Financial Services Group, Inc. (Pittsburgh, Pennsylvania) -- $1,000 bonuses to 47,500 employees; an additional $1,500 in employee pension accounts; base wage hike to $15; $200 million charitable contribution:

"The tax reform law creates an opportunity to reward our employees who are working hard each day to serve our customers, build strong relationships in our communities and create long-term value for our shareholders," said William S. Demchak, PNC's chairman, president and chief executive officer. "The Board's decision to recognize our employees and support our communities is reflective of our commitment to PNC's success." – Dec. 22, 2017 PNC press release

Apple (There are nine Apple store locations in PA: Ardmore, King of Prussia, Lancaster, Philadelphia, Whitehall, Willow Grove, and three locations in Pittsburgh) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $30 billion in additional capital expenditures.

AT&T -- $1,000 bonuses to 2,141 Pennsylvania employees; Nationwide, $1 billion increase in capital expenditures.

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

Cintas Corporation (Multiple locations in Pennsylvania) -- $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 Pennsylvania) – Bonuses ranging from $250 to $1,000; increased employee benefits; Nationwide, $50 million investment in existing restaurants.

Home Depot -- 70 locations in Pennsylvania, bonuses for all hourly employees, up to $1,000

Lowe's --13,000 employees at 84 stores and two distribution centers in Pennsylvania. 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 (Twenty-eight locations in Pennsylvania) – Tax reform bonuses for employees.

Starbucks Coffee Company (357 locations in Pennsylvania) – $500 stock grants for all 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 Pennsylvania) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Walmart – 63 locations in Pennsylvania, Walmart employees are receiving tax reform bonuses. Nationally, base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

McDonald’s (575+ locations in Pennsylvania) – 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

Wells Fargo – 260 locations in Pennsylvania; raised base wage from $13.50 to $15.00 per hour; Nationlly, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other Pennsylvania 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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New Study Confirms the Obvious: PFC Hike Would Raise Airline Ticket Prices.

Posted by Mike Palicz on Tuesday, January 21st, 2020, 12:33 PM PERMALINK Follow @Mike_Palicz

Last week, Congress released a new study on airport infrastructure funding. The study in part focuses on the impact of the Passenger Facility Charge (PFC) – a government-imposed fee collected from enplaned passengers at commercial airports controlled by local and state governments. Revenue earned through the PFC program is used to fund airport improvement projects and is currently capped at $4.50 per enplanement at a maximum of $18 per round trip.

The study comes as Congress is expected to consider raising the PFC in the coming weeks. As taxes and fees already account for over 20% of the cost of a domestic airline ticket, Congress should be focused on reducing this burden placed upon consumers rather than adding to it. Americans for Tax Reform has continuously opposed efforts to raise the PFC and urges lawmakers to reject any effort to raise the cap on the PFC.

Key findings from the study:

Raising the PFC cap will increase ticket prices for airline travelers - The study concludes that “an increase in the PFC cap would likely result in higher ticket prices for passengers traveling through airports that raised their PFC collections.” This finding is in line with a past study conducted by the Government Accountability Office which also concluded raising the PFC cap would increases ticket prices, causing “reduced passenger demand” that “could also marginally slow passenger growth and therefore the growth in revenues to the Airport and Airway Trust Fund (AATF).”

Inflation is an invalid argument to raise the PFC – The authors of the study note that although inflation has caused the purchasing power of a dollar of PFC revenues to erode, aggregate PFC revenues have grown to outpace inflation. Here is the finding straight from the report:

“It is important to note that increases in the number of airports that charge a PFC, the number of airports that charge the maximum allowable PFC of $4.50, and the number of passengers at these airports have resulted in the inflation-adjusted value of total PFC collections increasing over time despite declines in the value of a single passenger’s PFC.”

Translation: airports collectively have greater purchasing power from their total PFC collections in 2018 than they did in 2000, the last time the PFC cap was raised.

No evidence the PFC promotes competition between airlines – Proponents of raising the PFC cap often claim a higher PFC would promote competition between airlines as projects funded from PFC revenues don’t require the same sign-off from airlines that alternative funding sources necessitate, thus handing more control over airport expansion decisions back to airports. Airports, the argument goes, would then be less beholden to large airlines benefiting from restrictive leases of gates and other essential facilities.

However, it remains unclear that there is any data backing up this pro-competition assertion from those advocating for a PFC hike. The authors of the study point out that they are “not aware of any analysis that estimates the effect of PFCs on competition or prices at airports or city markets.”

In fact, reality has proven the PFC to have the opposite effect, adding an additional barrier for smaller airline companies who operate under an ultra-low-cost business model. These smaller airlines have the most price-sensitive customers with a high demand-elasticity in reaction to price-increases. Higher ticket fees hit them hardest. This explains why ultra-low-cost carriers such as Spirit Airlines have testified in Congress against raising the PFC.

This argument against raising the PFC is only bolstered by the fact that the study’s authors concluded their analysis “cannot determine whether an individual PFC project affects competition and prices.” However, the study did find that “any effects of individual PFC projects are, on average, small relative to other factors, such as local economic conditions and airline hubbing decisions,” and that “no single PFC project is likely to significantly alter the competitive landscape in an individual market.” While PFC funded projects are unlikely to alter competition, the higher ticket prices caused by fee hikes will disproportionately impact smaller airlines, thus damaging competition between airline companies.

Despite these findings, the authors of study recommend raising the PFC and do so with no compelling reason offered.

While recommending that the PFC cap be raised from $4.50 per enplanement to $7.44 for passengers – a staggering 65% fee hike – the authors state, “We are not aware of compelling evidence or data justifying a particular level for a new cap. Any number could be chosen, but we note that if the $4.50 cap had been indexed to inflation in 2000 using the Producer Price Index for construction materials, it would now be set at $7.44.”

Despite completely debunking the inflation argument in their own study (as outlined above in key findings) the authors almost comically conclude that the PFC should be raised anyway. Rather than laying out a case justifying such a drastic fee hike for American travels, the authors just throw their hands in the air and highlight that this is what the cap would be had Congress initially pegged the PFC to inflation, which lawmakers at the time deliberately chose not to do.

Americans for Tax Reform urges lawmakers to reject this recommendation from the authors of the study and to protect American travelers and consumers from inflated ticket prices resulting from even more government taxes and fees. After all, as the authors themselves states, there is no “compelling evidence or data” justifying a hike to the PFC.

Photo Credit: Eric Salard

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The Michigan Joint Task Force on Jail and Pretrial Incarceration released long-awaited recommendations last week to reform the state’s overcrowded jails. Michigan’s jail populations have rapidly gone up, a sign of a system that is not delivering the public safety, justice, and efficiency that people deserve.

In 2017, taxpayers spent an estimated $478 million on county jails. It’s not just that high costs are unaffordable for taxpayers, but they are a warning sign that too many people are being jailed, often for bad reasons, and reform is needed.

The data-driven recommendations from the Joint Task Force on Jail and Pretrial Incarceration offer an extensive set of reforms needed to create the more efficient, effective, and affordable jails that Michigan communities deserve.

The reforms include:

Ending the practice of suspending driver’s licenses for offenses that aren’t related to safe driving, like owed court debt. Driving without a valid license was the third most common reason for admissions to a correctional facility. Reform in this area would mean people can get to work to pay their fines, and don’t rack up criminal charges and lose the ability to hold a job because of a lack of means.

Decriminalizing low-level traffic misdemeanors. Low level offenses that currently entangle people in the criminal system that pose no risk to the community can be better handled by traffic courts.

Taking into account one’s ability to pay when imposing fines. Fines are meant to be a punishment first, not a revenue raising tool. It makes sense to limit the amount of fines to something an offender can reasonably be expected to pay. Imposing an exorbitant fine that an offender can never reasonably pay ties them to the criminal justice system in perpetuity as they deal with

Diversion for behavioral, mental health issues. With addiction driving so many people into jails, diversion that gets people with mental health and addiction issues into programs that can help is a needed reform.

More alternatives to arrest for police officers. Allowing officers to use appearance tickets when arrest and jail are not warranted for the suspected crime is a smart step that empowers police, and avoids pulling people into the jail system unnecessarily.

Caps on jail time for technical parole violations. The possibility of being jailed is important to incentivize people who are on parole to keep up with their obligations. However, that should be weighed against the unintended consequences (losing a job for instance) for otherwise well-behaved parolees.

Defendants must be tried within 18 months of arrest. Ensuring the justice system delivers speedy trials and people are not left in jail for extended periods of time is a win for liberty and safety. Extended jail time can make people more likely to commit future crimes.

Improved data collection. It is vital taxpayers know what is happening in the criminal justice system. Better data collection accomplishes this, and it is also critical to tracking the impact of reforms. If something is not working as anticipated, citizens and legislators should know quickly, and be able to act with confidence.

There are a couple areas that are left to counties that will be important for the counties to implement in the right way. The task force recommends bail reform, with release unless the court determines that a defendant poses a risk to the community, themselves, a flight risk, or has committed certain crimes (violent or against children). Counties will have to ensure effective risk assessment fills in where reliance on cash bail is reduced to ensure public safety is not put at risk.

Michigan residents have every reason to be excited about the task force recommendations. Now, the road to reform turns toward hammering out legislation. ATR looks forward to working with the legislature to ensure the best version of these proposals becomes law.

Photo Credit: Livingston County, MI

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Posted by Tabitha Jackson on Monday, January 20th, 2020, 2:40 PM PERMALINK

It’s not rocket science, spending drives demand for tax hikes, and the ability to raise taxes fuels spending.

Focusing on the spending side of the ledger, legislators in Pennsylvania have proposed the Taxpayer Protection Act (Senate Bill 116/ House Bill 1316). The bill, sponsored by Senator Camera Bartolotta and Representative Ryan Warner, would limit overall spending increases to the rate of inflation, plus population growth. A supermajority vote could override the limit.

Revenues that come in above the spending cap would first go into the state’s shallow rainy day fund. The state will also need to thoroughly review state programs to ensure spending growth is kept within the TPA index.

This is a great, pro-taxpayer measure for any state, but is especially necessary for Pennsylvania.

The Keystone State has seen its population stagnate, and even shrink in some recent years – losing 260,000 residents in 2016. The state and local tax burden costs residents $4,589 per year. While that is more competitive than some of its eastern neighbors, taxes are still driving people away.

This trend of leaving the state is especially prevalent amongst people aged 20-35. The Pennsylvania Independent Fiscal Office reported that 47,000 people in this age bracket with at least an associate’s degree left the state in 2015.

The good news is that from 2012 to 2017 Pennsylvania’s spending declined relative to state GDP, dropping nearly 20% by that metric, fifth most in the nation. Republican legislators having control of the state purse strings is largely why. Democrat Governor Tom Wolf has certainly pushed for his fair share of bad tax and fiscal policy since taking office in 2015.

Passing the Taxpayer Protection Act now would go a long way to preserving this progress on spending restraint, limiting the ability of future legislatures to waste the public’s money.

Spending restraint is also broadly popular, Republicans, Democrats and independents each reported at least 67% support for the measure, according to Susquehanna Polling & Research.

Now is the perfect time to get the Taxpayer Protection Act done.

Photo Credit: Wikimedia Commons

Posted by ATR on Monday, January 20th, 2020, 1:51 PM PERMALINK

Pete Buttigieg lied about the Tax Cuts and Jobs Act during an interview on MSNBC's Morning Joe on Wednesday, claiming that its benefits only go to the wealthy and corporations.

"As far as I can tell, the only promise that [Trump] has kept when it comes to economic policy was a giant tax cut for corporations and the wealthy," Buttigieg said.

Buttigieg is wrong, and if he and the Democrats repeal 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, higher than the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), and Ireland (12.5 percent).
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 Indiana, where Buttigieg is the mayor of South Bend, households who made the state average income of $55,476, received a tax cut of around $1,438.51, 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.

Buttigieg has also called for a full repeal of the TCJA as part of his "infrastructure" proposal.

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

Posted by ATR on Sunday, January 19th, 2020, 6:42 PM PERMALINK

Pete Buttigieg called for a “wholesale” rollback of the Tax Cuts and Jobs Act with a “special focus” on the corporate tax during an interview with the New York Times editorial board.

Here’s the key exchange:

NYT editorial board member: On raising taxes, what are your proposals?

Pete Buttigieg: “So a financial transactions tax, rollback wholesale of the Trump tax cuts with a special focus on what’s going on in the corporate-rate tax cut. Close the 199A loophole, deal with some of the enforcement deficiencies that are driving the big part of the revenue gap right now I think. I’m also open to a wealth tax. I just would not put my signature proposal in a position of being completely dependent on a tax that is constitutionally untested.”

Pete Buttigieg first called on repealing the TCJA as part of his “infrastructure” plan, which according to CNBC, would repeal the entire tax cut.

“His campaign said the plan will be paid for by reforming the capital gains tax and repealing the 2017 GOP tax overhaul, reforms that had been previously disclosed. The campaign will also raise the estate tax, with a top rate of 65% for billionaires,” CNBC reported.

Buttigieg’s 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, higher than the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), and Ireland (12.5 percent).
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 Indiana, where Buttigieg is the mayor of South Bend, households who made the state average income of $55,476, received a tax cut of around $1,438.51, 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, visit www.atr.org/HighTaxDems.

See more:

Buttigieg Would Repeal the Entire Trump Tax Cut

Warren Dodges Private Healthcare Question Three Times During Morning Joe Interview

Biden: “Get Rid of the Trump Tax Cut”

Pete Buttigieg: “We Gotta Roll Back the Trump Tax Cuts for Corporations”

Biden: “Anybody Who Can Throw Coal Into a Furnace Can Learn How To Program”

Warren Contradicts Herself on Medicare for All, Again

Mayor Pete’s “Carbon Tax and Dividend” Will Raise Taxes on Social Security Recipients

Booker Praises Opportunity Zones While Planning to Repeal TCJA Which Created Them

Buttigieg Praises Opportunity Zones, Vows to Eliminate TCJA Which Created the Zones in the First Place

Sanders: “Of Course” Medicare for All Will Cost You Something

Despite Steep Tax Hikes, Biden’s Numbers Don’t Add Up

Biden: Capital Gains Tax Rate “Could Go Higher” Than 40%

Biden on Medicare for All: “You’re Going to Have to Raise Taxes on the Middle Class”

Sanders Senior Adviser: “Yes, We Will Repeal the Trump Tax Scam”

Bloomberg Endorsed a Carbon Tax

Biden to Sanders and Warren: “Let’s Get Realistic” on Trillion Dollar Spending Plans

Booker: I Would Raise the Capital Gains Tax Rate

List of Buttigieg Tax Hike Proposals

2020 Dems: Warren's Medicare for All Will Raise Middle Class Taxes

Fact Check: Mark Zandi Misleads Americans, Claims Warren’s Healthcare Plan Will Not Raise Middle Class Taxes

Warren: Medicare for All Covers Illegal Immigrants

Elizabeth Warren Contradicts Herself on Taxes, Again

Biden: Imagine if I Told Elizabeth Warren ‘You Should Be In a Socialist Primary’

CNN Catches Warren in a Tax Lie

Bernie Sanders: Warren’s Medicare for All Plan Would Have “Very Negative Impact” on Jobs and Wages

Warren Claims Americans Making Less Than One Billion Dollars Will “Not Pay a Penny More” in Taxes Under Her Medicare for All Plan

Warren’s “Medicare for All” Repeals Trump Tax Cuts

Biden: Warren is "Making it Up" on How She'll Pay for Medicare For All

Biden: “It’s Impossible to pay for Medicare for All without middle class tax increases”

Biden Slams Medicare for All: “It’s Totally Unrealistic and Can’t be Done”

Warren: Two Million Lost Jobs from Medicare for All “Part of the Cost Issue”

Video Showing Every Time Elizabeth Warren Has Dodged the Middle Class Tax Question

Out of touch Biden calls Trump’s $2,000 middle class tax cut “negligible”

Biden Calls for 28% Corporate Tax Rate

Biden: “Every Single Solitary Person” Will Pay 40% Capital Gains Tax

Warren Dodges the Middle Class Tax Question Again

Buttigieg Says He Will Raise Corporate Tax Rate to 35%

Watch: CNN Analyst Gets Visibly Irritated as Warren Dodges Tax Hike Question

Andrew Yang to Elizabeth Warren: Wealth Tax Would Have “Massive Implementation Problems”

Biden on Warren Dodging Middle Class Tax Question: “This is Ridiculous. Absolutely Ridiculous.”

Buttigieg Grills Warren for Dodging the Middle Class Tax Question

Biden: I Will Raise the Capital Gains Tax to 39.5%

Elizabeth Warren Can’t Stop Dodging the Middle Class Tax Question

VIDEO: 17 Times Elizabeth Warren Has Dodged the Middle Class Tax Question

VIDEO: Warren Keeps Dodging the Middle Class Tax Question

Biden: “I’m Gonna Double the Capital Gains Rate to 40%”

Tax Hike Bernie Says He’ll Tax All Income Over $29K

Video: Warren Dodges Middle Class Tax Question Again

Biden Calls for Full Repeal of Trump Tax Cuts

Biden Attacks Warren: "She's Going to Raise People's Taxes”

Video: Media Fed Up with Elizabeth Warren Tax Dodge

Biden: End "Trump's Tax Cut for The Top Tenth of One Percent"

Booker: “My plan would reverse those toxic Trump tax cuts”

Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question

Video: Warren Dodges MSNBC’s Middle Class Tax Questions

Elizabeth Warren is Still Dodging the Middle Class Tax Question

Video: 2020 Democrats Promise Higher Taxes

Biden Caught Lying about GOP Tax Cuts

Bill De Blasio: “As President, I Would Issue a Robot Tax”

Biden Endorses Carbon Tax

Kamala Harris Calls for Ban on Plastic Straws

Elizabeth Warren's Climate Plan Calls For "Reversing" GOP Tax Cuts

Sanders: We’re Going to “Absolutely” Raise the Corporate Tax Rate

Elizabeth Warren on Corporate Tax Cuts: “I really want to see them rolled back.”

Bill de Blasio Calls for Corporate Tax Rate Hike

Amy Klobuchar: Raise the Corporate Tax Rate to 25%

Biden on capital gains tax: “We should raise the tax back to 39.6 percent”

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

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

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

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

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

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

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

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 Margaret Mire on Friday, January 17th, 2020, 4:38 PM PERMALINK

Phoenix’s onerous airport ride-sharing fee increase could soon be overturned by the Arizona Supreme Court.

State Representative Nancy Barto (R-Phoenix) asked Attorney General Mark Brnovich (R) to see if it violates a provision of the state Constitution – which was put in place by voters in 2018 – that prohibits both new and increased taxes on service. "It [the new airport ride-sharing fee increase] is such a blatant disregard of the will of Arizona voters who passed Prop. 126 in 2018," said Barto.

General Brnovich wants the court to issue a decision on the constitutionality of this Uber and Lyft fee increase. “Our office will promptly file a special action with the Arizona Supreme Court to strike down Phoenix’s unconstitutional rideshare fee and prevent the ordinance from taking effect,” tweeted General Brnovich.

“This is going to be a long-running fight with greedy politicians who want to tax transportation and take advantage of a monopoly – in this case access to an airport – to raise taxes. The attorney general did the right thing in noting this was unconstitutional. Every state should have constitutional protections against these abuses, but until then we are going to have to be vigilant and fight these tax hikes one after the other. They are coming to an airport near you,” said Grover Norquist, president of Americans for Tax Reform.

The airport ride-sharing fee increase to $4 – a rate that is among the highest in the country – for both pickups and drop-offs at Sky Harbor International Airport is set to take place on February 1 of this year. Adding insult to injury, the fee will increase by 25 cents per year until it reaches $5 in 2024. Under previous law, the airport ride-sharing fee was $2.66 and charged only on pick-ups.

The fee increase was imposed last month by a 7-2 vote of the Phoenix City Council, despite Uber and Lyft saying it would cause them to end their airport services. Councilman Jim Warring and Councilman Sal DiCiccio were the two no votes.

Posted by Isabelle Morales on Friday, January 17th, 2020, 1:06 PM PERMALINK Follow @IsabelleAliciaa

ATR president Grover Norquist joined Connell McShane on Fox Business Network's After the Bell to discuss California latest tax hike attempt, which could lead to the nation's highest state corporate income tax rate.

The bill would increase taxes on companies that post at least $10 million of taxable income. The size of the tax increase would be proportional to the pay gap between the CEO and employees. The larger the gap, the larger the tax increase.

Norquist responded:

"It's a massive tax increase. California has an 8.8 percent corporate income tax on top of the 21 percent national, federal tax. They want to take that up to 11 to 15 percent. So it's a massive tax increase to start with. But then they go, "Oh, but we'll hit you even more if you don't pay people the way we want you to."

Boards of Directors are responsible and shareholders are responsible for firing any CEO who overpays himself or herself. It shouldn't be the government's decision to tell you. Sometimes, somebody who's a CEO can be worth a lot of money, sometimes not... If you want to be in the business of setting pay, vote as a shareholder, work in the business of owning part of the company. The people who should care are the people who own it. They don't want to waste money. They don't want to waste millions of dollars on a CEO that's not any good."

California's brutal tax and regulatory environment continues to drive people and companies out of the state. State politicians don't seem to know or care.

Click here to watch the interview.

Posted by James Setterlund on Thursday, January 16th, 2020, 10:50 AM PERMALINK Follow @2022909189

Americans for Tax Reform signed a coalition letter led by Heritage Action for America encouraging the Securities and Exchange Commission to refrain from implementing the Consolidated Audit Trail.

The CAT National Market System is a database established after the 2010 “Flash Crash”, when the SEC began requiring broker-dealers, trading venues and stock exchanges to report all securities transactions and customer information to a single database this year. The CAT is a Delaware company jointly owned by broker-dealers on a co-equal basis, with the SEC, the Financial Industry Regulatory Authority, and 23 additional self-regulatory agencies having authority to access the database. The Heritage Foundation’s David Burton notes that as many as 3,000 regulatory users may be able to access the database.

ATR joined the coalition letter as we share the concerns of members of Congress, current SEC Commissioner Hester Peirce, and organizations representing private businesses and everyday investors who fear the collection of personal identifiable information leaves the CAT a ripe target for cyber theft, and does little to stamp out fraud within the financial markets.

Additionally, if the CAT is breached by nefarious actors there is little recourse for consumers in terms of who or what entity bears the financial burden of making consumers and companies whole. Without additional consideration of electronic breaches, it could be the consumer or taxpayers who are left picking up the tab.

Photo Credit: Scott S

Posted by Paul Blair on Wednesday, January 15th, 2020, 10:15 PM PERMALINK Follow @gopaulblair

In Iowa this week, Democrat Pete Buttigieg signaled that if elected, he would place tighter regulations on the nicotine vapor industry, stating that “the burden has to be” on the vapor industry to prove that e-cigarettes and nicotine vapor products are safe, during a town hall in Winterset, Iowa on Monday. He went on to mischaracterize the value and intended purpose of products that are specifically flavored in nature and to blame nicotine products for recent vaping-related illnesses.

Here’s the key exchange:

Voter: “So, in 2019, more than 27% of high school students used an e-cigarette. How would you address this epidemic as it pertains to youth and young people?”

Buttigieg: “So, what we are seeing is e-cigarettes being marketed and sold to young people despite companies telling us otherwise. The way this was marketed and sold to the country is that it can be used for harm reduction. It can get people off smoking combustion cigarettes and into something that might be less dangerous than cigarettes. But that doesn't make them safe in their own right, and that doesn't answer why you would target them for people who aren't smokers at all. And I believe the burden has to be on these companies to demonstrate that they are not causing harm rather than on regulators to demonstrate that they are.

This means taking action on these flavored e-cigarette products that are clearly targeted towards children and making sure that we have a much higher bar for them demonstrating that they're not causing harm because we're seeing all these horrifying cases of people coming to harm because they use this product.

And it is why, whether its specific to e-cigarettes or whether its more generally when it comes to the way that we regulate food and drug and other products in this country that we have regulators who actually believe in protecting consumers rather than being beholden to those whose profits are at stake."

Not only does Buttigieg signal that he would impose rules more onerous than those recently implemented by the Trump administration, but he refused to acknowledge the harm reduction potential of a vast majority of vapor products that adults use to quit smoking which are in fact flavored.

Without evidence or context he asserted that e-cigarettes have caused harm to consumers. In fact, Mayor Pete seemed to purposely confuse the harm being inflicted on consumers by black market and illicit THC marijuana products, which have been identified by the Centers for Disease Control and Prevention as the culprit behind the recent vaping illnesses. Those THC products are generally already illegal in all instances, as opposed to legal nicotine vaping products available in convenience stores, vape shops, and other retail outlets.

Buttigieg’s comments come less than a week after Elizabeth Warren signaled that she would crack down on legal nicotine vaping if elected and on the heels of Joe Biden also suggesting that he would “eliminate” vaping if elected.

“I don't care what it does to a small business person who's selling this stuff. If it is damaging lungs, if it's causing the kind of damage that is said and that studies not been fully done yet. If it turns out that it is that I would eliminate it,” Biden said.