How the Trump Republican Tax Cuts Are Helping Pennsylvania

Posted by John Kartch on Monday, August 31st, 2020, 9:57 AM PERMALINK Follow @johnkartch

Pennsylvania is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

823,380 Pennsylvania households are benefiting from the TCJA’s doubling of the child tax credit.

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

4,415,920 Pennsylvania households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.

153,140 Pennsylvania households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Pennsylvania residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. Pennsylvania utilities that have passed along tax savings include -- but are not limited to -- Citizens’ Electric Company of Lewisburg, National Fuel Gas Distribution Corporation, PECO Energy Company, Pennsylvania Electric Company, and more. (see below).

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

Hudson Facades (Linwood, Pennsylvania) – Pay raises and $3,000 in every factory worker’s 401(k):

"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

Frontier Railroad Services (Fallowfield Township, Pennsylvania) -- The company is building an office building in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A rail-related company is now making tracks for Alta Vista Business Park.

Frontier Railroad Services LLC has purchased a 4.6-acre lot, according to a news release issued Thursday by Mon Valley Alliance, the nonprofit owner of the 256-acre park in Fallowfield Township. Frontier is a regional railroad construction and maintenance firm that specializes in new track construction and tie and rail changeout.

The company is currently based in New Stanton, but wants to construct its new headquarters in Alta Vista. Plans call for a building that would house corporate offices, a repair and maintenance facility and about 11,000 square feet of operating space. Work is targeted to begin this year and end in 2020.

Frontier plans to have a workforce of 20-plus, with room to expand. MVA said the company had three primary reasons for selecting Alta Vista: its proximity to Interstates 70, 76 and 376; having a shovel-ready site designated as a Keystone Opportunity Zone; and access to an industrial-based workforce.

Frontier is led by chief executive officer Nicholas Scigliano; president and chief operating officer Gregory Susko; vice president and chief financial officer Dennis Stoner Jr.; and chief estimator Scott Sepesky.

"Our company is growing and we have open positions to fill immediately," Sepesky said. "Specifically, we have positions open for laborers, operators and mechanics experienced in railroad construction."

John Easoz, chairman of the MVA board, said in a statement: "We are pleased to welcome a regional asset such as Frontier to Alta Vista. We look forward to working with the company as they continue to grow in this new headquarters, providing jobs and economic activity for our region." -- Feb. 22, 2019 Observer-Reporter article

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, urnished 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

H2O Connected (Coatesville, Pennsylvania) -- The business will be relocating to an Opportunity Zone and expanding:

H2O Connected, the first Qualified Opportunity Zone (QOZ) business to open its doors in Chester County, will be relocating in late 2020 into a highly anticipated Qualified Opportunity Zone Real Estate project at 190 West Lincoln Highway in Coatesville, developed by Proudfoot Capital.

This former Lukens Steel advertising and marketing office building, built in 1902, is being repurposed into The nth Innovation Center, which will offer entrepreneurs an environment to grow their companies from concept to commercialization.

Already slated to join H2O Connected is nth Solutions, a product development, business incubation, and manufacturing company located in Exton, PA; BioForce Analytics, a provider of sophisticated motion measurement devices for industry and education applications; and Priority Green, a leader in traffic signal preemption products for emergency vehicles. -- March 13, 2020 Daily Local article

Threadbare Cider & Mead (Pittsburgh, Pennsylvania) -- The distillery was able to save houndreds of thousands of dollars because of the Tax Cuts and Jobs Act, and was also able to hire three new distillers:

The Craft Beverage Modernization and Tax Reform Act reduced the excise tax rate on distilled spirits from $13.50 to $2.70 for the first 100,000 proof gallons per year, with smaller cuts to taxes on beer and wine.

“The tax relief, it’s well into the six figures for us,” said Meredith Meyer Grelli, co-owner at Wigle Distillery and Threadbare Cider & Mead in Pittsburgh. “Every dollar goes back into the business. And I think every small-business owner in the world can relate to that.”

Pittsburgh’s Wigle Whiskey Distillery produces a variety of small-batch whiskeys at its Strip District distillery. The 2017 tax relief allowed the business to immediately hire three distillers, Grelli said.

“It takes a year to train a new distiller, for them to be fully independent, safely operating a still,” she said. “So for every new distiller we bring on, we’re investing a year into them. If this tax relief went away and our taxes did go up 400%, we couldn’t grow our labor force in the same way. And we’d have to be much more careful about how we hired, because it is such a risk.” -- February 1, 2020 Pittsburgh Tribune-Review article

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

BrightFarms (Selinsgrove, Pennsylvania) -- The company is building a greenhouse that will grow food year round in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Ground was broken Monday for a greenhouse that will grow food in water.

Abby Prior, BrightFarms vice president of marketing, said the hydroponic greenhouse will use ponds to grow produce year round. Climate control will be key.

"We control the temperature, the humidity and, to some extent, we can control the light," Prior said. "We do use some artificial light and we use shades when we need shade."

Four acres will be developed for growing space with a single acre used for packing, cooling and shipping. Baby greens, salad greens such as spring mix, and herbs will be grown there.

Though it is an indoor operation, the plants may attract insects. They will be controlled without pesticides.

"We use something called integrated pest management," Prior said. "If we have a bug, we bring in another bug that eats or kills that other bug to control the pests in the greenhouse."

Eric Lallum, vice president of construction, said the area off Route 522, west of Selinsgrove, was ideal.

"We look for areas where we can orient the site so the greenhouse faces south," Lallum said. "That gives us the maximum sun, and it is as flat as we can get it."

The produce will be packed on site and ready to market at all Giant Food Stores. An officer with the Carlisle-based food store was glad to hear of the greenhouse's establishment.

"We are very excited," said John Ruane, Giant Food Stores chief merchandising officer. "We've been doing business with BrightFarms for many years. We have a great partnership. This just makes it even more local for us."

The property was designated as a 10-year Keystone Opportunity Zone, which Lallum called an incentive. Low-interest loans offered by the state also are being pursued. -- May 22, 2019 The News-Item article

Jefferson-Werner LLC (Bethlehem, Pennsylvania) -- The developer is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

It looks like Bethlehem's crumbling Boyd Theatre has screened its final movie.

Fans of the city's last cinema house hoped the charming theater might be saved when developer Charles C. Jefferson bought the property in January 2016 for $1.35 million. But, alas, it looks like the water-logged building is beyond saving.

Bethlehem Mayor Bob Donchez confirmed the developer plans to tear down the theater and build apartments there.

Jefferson told Lehigh Valley Business on Tuesday that he plans to demolish the theater to make way for a $22 million, 120-unit apartment project with lower-level retail by leveraging a federal opportunity zone, a tax incentive written into the new tax law.

Jefferson did not respond to a phone message seeking information on his plans, and emails to him and his company came back as undeliverable.

The opportunity zone designation gives developers of commercial and residential projects breaks on capital gains taxes for investing in economically disadvantaged areas. It is mean to encourage urban investment outside of city centers.

The stretch of East Broad Street where the Boyd sits has long vexed city officials. The decaying properties created a sharp demarcation between the city's restaurant row and Main Street shopping.

"We've been waiting a long time to see redevelopment at the Boyd," city Director of Community and Economic Development Alicia Miller Karner said. "... It is a

critical block to us. It is the bridge between Main Street and a significant residential area." The Boyd was shuttered in 2011 and as it decayed the adjacent storefronts were condemned in 2015. Shortly after, the city declared the property blighted. Donchez has long said retail and housing should be key elements of the redevelopment of the Boyd property.

On Wednesday, Donchez said while it's unfortunate economics mean the Boyd must be torn down, Jefferson is proposing a good project for the city.

"I think that block has a lot of potential," the mayor said. "I think it is underutilized."

Jefferson has shared conceptual designs with the city and the mayor is quite pleased with the proposed mixed use. New housing units downtown will bring more vitality to the city center and the retail will hopefully better link Broad Street to Main Street, Donchez said.

"It makes that block stronger," he said.

Jefferson told Lehigh Valley Business that the entire project could cover 147,800-square-feet with about eight total floors. Two floors would front onto East Broad Street with about eight to the rear, including lower level parking and retail topped with apartments.

"I think there is a tremendous demand for apartments in the downtown," Donchez said. "That's not just Bethlehem, if you look at Allentown and Easton, too."

The developer estimates that construction could start this fall, but no plans have been filed with the city.

At one time, Moravian College was interested in buying and rehabbing the former movie theater into a performance venue, but it abandoned the plans when faced with a $30 million price tag and no major donor to help.

Water damage has long plagued the 1,100-seat Boyd and the buildings surrounding it. The theater closed following heavy rains in May 2011. When the city condemned the property in 2015, officials found an elaborate tarp system along with 50-gallon drums set up in second-floor office space.

The property consists of the theater, which has an orchestra pit and dressing rooms backstage, five storefronts, 10,000 square feet of office space and a onetime nightclub below street level.

Currently, Jefferson's company Jefferson-Werner LLC is working with Lehigh University to renovate the former Lehigh Valley Cold Storage building, 321 Adams St. in South Bethlehem, into 30 market-rate apartments, a retail space and courtyard. The project dubbed Brinker Lofts also sits in one of Bethlehem's opportunity zones. -- February 14, 2019 The Express-Times article

Eric Blumenfeld (Philadelphia, Pennsylvania) -- The developer is building a mixed-use space that will include offices, apartments, and a fitness club in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Developer Eric Blumenfeld is aiming to break ground in July on a 30-story North Broad Street tower with offices, apartments and a fitness club that he hopes cap with digital screens featuring animated versions of the famous mural next door.

Blumenfeld said Wednesday that he was close to finalizing a deal with investors in the $160 million project who will be taking advantage of the Broad and Spring Garden Street site’s location in an “opportunity zone” under the 2017 tax bill.

Under that law, investors in projects within opportunity zones can claim savings on taxes from the sale of assets that have gained in value. Blumenfeld declined to share details about the opportunity zone backing of what he’s calling Mural West before the deal is signed.

The tower, on the northeast corner, would rise beside Blumenfeld’s Mural Lofts apartments, formerly the Thaddeus Stevens School, which is known for the Common Threads mural painted on its side.

It would be Philadelphia’s tallest building outside the city’s central core, as well as the latest — and largest — project in the city to be funded under the opportunity-zone program, which is meant to encourage development in low-income communities.

The project is slated to include about 205 apartments and 68,000 square feet of office space, according to a brochure prepared by brokerage Precision Realty Group to market the proposal’s ground-floor retail spaces.

Blumenfeld said he’s also nearing a deal with the operator of a planned fitness center in the building that would occupy nearly 48,000 square feet over six floors. The fitness complex may include features such as coworking offices and guest rooms for overnight visitor stays, Blumenfeld said.

Similar combinations of amenities can be found at Life Time Fitness Inc.‘s location in Ardmore’s Suburban Square shopping complex and the planned Fitler Club private membership club being built in Aramark Corp.‘s headquarters building at 2400 Market St.

Blumenfeld’s plans for Mural West also call for the tower to be crowned with digital screens playing animated vignettes based on the Common Threads mural.

The effect will be similar to the animation in the 2017 Vincent Van Gogh biographical film Loving Vincent, in which “they take all the figures in his artwork, and they bring it to life,” he said. “I think it’s going to be the most interesting building ever built in Philadelphia.”

Blumenfeld’s other projects in the area include the recently completed Metropolitan Opera House concert venue and the Divine Lorraine apartments. -- April 12, 2019 Philadelphia Inquirer article

Custom Container Solutions (Milton, Pennsylvania) -- The steel container company moved to central Pennsylvania and is creating 100 new jobs in an Opportunity Zone created by the Tax Cuts and Jobs Act:

MILTON, Pa. -- The state has designated an old industrial site in central Pennsylvania as a Keystone Opportunity Zone and now nearly 100 jobs are coming to an old factory that had been shut down.

The plant in Northumberland County has been vacant and collecting dust for the past decade, but starting next year, it will help create almost 100 jobs in central Pennsylvania.

The old manufacturing plant in Milton Industrial Park will be up and running next year. The building has sat vacant since 2008 but will soon be home to Custom Container Solutions, a company that makes steel containers.

"It checks almost every box in our wish list, and so now our team is excited to have closed on the property, and we are moving forward with fitting out the equipment and starting to hire people," said Todd Vonderheid of Custom Container Solutions. -- October 21, 2019 ABC 16 article

Hazelwood Green Development (Pittsburgh, Pennsylvania) -- This Opportunity Zone led to the creation of a 240,000 square foot workspace which has the potential to become a local tech hub, laying the groundwork for Pittsburgh’s jobs of the future.

“One of those success stories, she said, is the nearby Hazelwood Green development, which is located within one of the 68 designated opportunity zones in Allegheny County. Ms. Kelley and U.S. Assistant Secretary of Commerce for Economic Development John Fleming spent Friday morning at the riverfront property, formerly the LTV Coke Works site, which developers and universities say could become a potential local tech hub.

Ms. Kelley said she’s happy to see the development -—including the Mill 19 building that will become a 240,000-square foot workspace — is within an opportunity zone, and will help lay the groundwork for Pittsburgh’s jobs of the future.

"Not only can Mill 19 provide new jobs and opportunities to Hazelwood, but it will also expose an entire community to advanced manufacturing, which was a community born in traditional manufacturing," Ms. Kelley said.” -- November 1, 2019, Pittsburgh Post-Gazette

Spark Therapeutics (Philadelphia, Pennsylvania) -- The company extended their lease in a newly remodeled building located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Spark Therapeutics Inc. has signed a 12-year lease at 3000 Market St. to expand its Philadelphia presence.

The 58,587-square-foot building is located across from space Spark is taking in the Bulletin Building at 3025 Market St., a 282,709-square-foot structure being redeveloped in University City.

Brandywine Realty Trust (NYSE: BDN) owns both buildings, which sit across from 30th Street Station. The real estate company expects to have the Bulletin Building completed by the third quarter. As for 3000 Market, Brandywine said in a first-quarter conference call with analysts on Thursday that the redevelopment of it into a life sciences building will begin once Pennsylvania lifts a ban on construction projects.

Brandywine CEO Jerry Sweeney announced on the call the signing of a 12-year lease at 3000 Market but declined to disclose the name of the tenant when pressed by analysts. However, he said it was a well-known company in Philadelphia with major corporate credit, in the cell-gene therapy business and already has a presence in University City. “We were delighted to bring them in,” Sweeney said.

A source familiar with the deal confirmed the tenant was Spark. The lease will commence during the third quarter of 2021.

Spark, which was spun out of Children's Hospital of Philadelphia, was acquired last year by Roche for $4.3 billion.

"Spark Therapeutics was founded in Philadelphia, and we intend to grow here," Kevin Giordano, a company spokesman, told the Business Journal. "Spark numbers more than 450 employees, and we have ambitious growth plans to achieve our vision of creating a world where no life is limited by genetic disease. In order to further our investment in Philadelphia and accommodate our expected growth, Spark is working with Roche to assess opportunities to expand our footprint within the city. At this time, we are not commenting further on what space or locations are being considered."

The company is currently headquartered nearby in University City. Spark has said it plans on adding hundreds of new jobs in West Philadelphia.

The idea of converting 3000 Market into a life sciences building was a bit of an experiment for Brandywine but the company was able to move fast, have the real estate company’s development team evaluate it and move ahead with it, Sweeney said. The quick lease up and ability to move ahead with creating the space has prompted Brandywine to consider converting floors in other buildings into life-science space to capture demand.

“There has been no slowdown of activity with life science tenants,” Sweeney said.

The Bulletin Building and 3000 Market are part of Brandywine’s $3.5 billion Schuylkill Yards mixed-use development in University City, which is expected to eventually see 6.9 million square feet of new construction.

The company has queued up what it refers to as its West Tower that will have housing and office space and is working with a Qualified Opportunity Zone equity partner on that project. The building will have 419,000 square feet split between office and apartment space. It will also have 9,000 square feet of retail space and covered parking.

Brandywine also has in design for the development for another life science building and anticipates, conditions permitting, that will start during the first half of next year.

In 2018, Spark received a $2 million grant from the Pennsylvania Department of Community and Economic Development and a $7.5 million grant from the Redevelopment Assistance Capital Program to add 500 new jobs over the next five years.

Spark holds the distinction of being the first company to receive FDA approval for a gene therapy — Luxturna — developed to treat an inherited disorder. The genetic retinal disorder leads to blindness if untreated. -- April 23, 2020 Philadelphia Business Journal article

Iovance (Philadelphia, Pennsylvania) -- The cancer therapy firm is building an office and laboratory complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Cancer-therapy firm Iovance Biotherapeutics Inc. plans to open a sprawling office and laboratory complex in South Philadelphia’s Navy Yard complex, adding to the city’s growing clout as a biotechnology research-and-development hub.

Iovance, which specializes in the development and commercialization of cancer immunotherapies using cells known as tumor-infiltrating lymphocytes, will occupy a three-story, 136,000-square-foot building that will span about a block of the Navy Yard’s core business and research park.

The Navy Yard was also chosen because of the tax advantages that come from being within a Keystone Opportunity Zone, which can qualify companies for city and state tax breaks, as well as other financial incentives. -- May 30, 2019 Philadelphia Inquirer article

WinnDevelopment (Jersey City, New Jersey) -- The company announced they are building affordable housing units in an Opportunity Zone created by the Tax Cuts and Jobs Act:

One building was the old Liberty Hotel, built on Baltic Avenue in 1924 and listed in a 1950s “Green Book” of places welcoming to black travelers, one of 27 in Atlantic City.

Another was the old Illinois Avenue School, built in 1906.

The third was once the celebrated Northside YMCA on Arctic Avenue, built in 1927, a community gathering place that knit together the city’s historically thriving black neighborhood.

All three buildings later became affordable housing, and more recently, severely rundown properties described Wednesday by Mayor Frank Gilliam as “dismal, deplorable, subpar.”

“Living in squalor is not something any municipality should have to deal with,” Gilliam said.

But local and state officials announced Wednesday that WinnDevelopment would be acquiring all three properties as part of an opportunity zone investment, substantially rehabilitating the properties, and keeping them affordable housing for the required 30 years and, vice president Brett Meringoff said, beyond. -- May 30, 2019 Philadelphia Inquirer article

Brandywine Realty Trust (Philadelphia, Pennsylvania) -- The company is building a mixed-use space in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Brandywine Realty Trust opened Drexel Square, a $14.3 million park that will serve as the cornerstone of Schuylkill Yards, an ambitious 6.9-million-square-foot mixed-use community under development at the front door of University City.

The 1.3-acre park is the first phase of Schuylkill Yards, which Brandywine is developing in partnership with Drexel University. Its completion sets the tone for what the developer is hoping to accomplish with the project.

“Schuylkill Yards is a large-scale development, but it’s really about changing the existing perception of University City and Philadelphia,” said Jerry Sweeney, CEO of Brandywine Realty Trust, in an interview with the Philadelphia Business Journal.

Drexel Square was built on a dingy surface parking lot that was the first impression of University City for the millions of people who use 30th Street Station each year; in that way, Drexel Square is an initial step to alter perceptions.

The 12,064-square-foot elevated space has 23 redwood trees, raised planter beds and pathways that represent the meridians of the globe, symbolizing the connections Schuylkill Yards aims to create while also serving as ways to navigate the park. The space, which can accommodate 500 people, was designed by West8 and Shop Architects.

“We wanted to create a durable wow effect,” Sweeney said. “We want people to walk out of the train station and say, ‘Wow!’ ”

John Fry, president of Drexel University, said few developers would take what amounts to an extremely valuable piece of property, one that could easily accommodate a 50-story building, and instead create a public space. “It says a lot about our collective vision,” he said.

With the park finished, next up for Schuylkill Yards is the $43.3 million completion of the redevelopment of the former Bulletin building. Spark Therapeutics will occupy office and lab space in that structure and will be fully moved in by the end of the year. The first floor will house 35,000 square feet of retail space and several tenants are under consideration, including a food hall.

The next two projects Brandywine will focus on involve securing anchor tenants to fill one-third of a proposed 800,000-square-foot office tower and constructing a building that will have 325 apartments and creative office space. That second tower could start as early as next year since demand for apartments remains strong, Sweeney said. Longer-range, Brandywine plans to build a 300,000- to 400,000-square-foot life science building. It has partnered with Longfellow Real Estate Partners of Boston on that project.

Schuylkill Yards sits in a Keystone Opportunity Zone as well as a Federal Opportunity Zone, giving tenants tax breaks and another enticement to move into one of its office buildings. While those benefits are attractive, Sweeney said one of the biggest lures is its proximity to 30th Street Station. -- June 11, 2019 Philadelphia Business Journal article

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.

Seokoh Inc. (Scott Township, Pennsylvania) -- A cosmetics company is building a facility in the Pennsylvania town that will create at least 280 jobs, in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A Scott Twp. cosmetics company is expected to soon break ground on a $27.9 million expansion that's estimated to create at least 280 new jobs in the next three years, a township official said Friday.

Carl Ferraro,township administrator, said officials with Seokoh Inc. advised him they want to begin excavation work before winter.

"The excavation end of it is going to be massive," he said. "I expect them to start any day now."

The company, a subsidiary of the integrated cosmetic and pharmaceutical company Kolmar Korea, plans to construct two roughly 200,000-square-foot buildings on property adjacent to its existing factory located on Life Science Drive in the Scott Technology Park.

Gov. Tom Wolf touted the project Friday as an example of the competitive advantage Pennsylvania offers manufacturing companies.

"Our diverse workforce and central location make Pennsylvania a prime place to do business," Wolf said in a press release. "We are pleased to see Seokoh further grow its operations."

The company is a leading contract manufacturer and filler of premium cosmetics and personal care products. It employs about 290 people. In addition to the new facilities, Seokoh will renovate its existing plant and purchase new equipment.

State and local business officials helped entice the firm with several tax breaks, including an extension of Keystone Opportunity Zone benefits that provide temporary relief from certain state and local taxes through 2028. The Lakeland School District and Lackawanna County commissioners approved that extension last year. -- September 21, 2019 The Times-Tribune article

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

Erie Downtown Development Corporation (EDDC) (Erie, Pennsylvania) – The EDDC used benefits made possible by the Tax Cuts and Jobs Act to reinvest in their downtown area and attract new businesses:

"The EDDC is actively pursuing additional Downtown real estate for revitalization. It’s working with national investment funds, philanthropic organizations, and urban planning leaders to leverage investment through Opportunity Funds in the Downtown. It’s leveraging existing community-developed plans, including Erie Refocused, Emerge 2040, and the Erie Downtown Master Plan. The EDDC has a four part development strategy for downtown: Acquire and redevelop commercial and residential real estate; attract new businesses, residents & investment; support and enhance the public spaces; and create programming." – November, 2019, Governance Project

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

Erie Insurance (Erie, Pennsylvania)– The insurance company is investing $50 million in the Opportunity Zone investment fund to support a variety of projects in Erie:

“Erie Insurance CEO Tim Necastro announced the establishment of 50 million dollars to the Opportunity Zone Investment Fund.

The fund is designated to help financially support different projects within a portfolio. One of those projects is the Erie Downtown Development Corporation’s plan for North Park Row.

Erie Insurance is investing 2.6 million dollars into the project to create a Culinary Arts District, Foot hall, Market, and Apartments.

Necastro said money in the Opportunity Fund is considered an investment, not a donation.” – August 19th, 2019, Your Erie

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

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

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

More from Americans for Tax Reform

Pennsylvania Can't Afford Biden's Tax Increases

How the Trump Republican Tax Cuts Are Helping Wisconsin

How the Trump Republican Tax Cuts Are Helping Michigan

Video: Biden Will Destroy Pennsylvania Energy Jobs

Posted by John Kartch on Thursday, September 17th, 2020, 5:30 PM PERMALINK Follow @johnkartch

Watch: Joe Biden vows to end fracking and fossil fuels:

Posted by John Kartch on Thursday, September 17th, 2020, 5:10 PM PERMALINK Follow @johnkartch

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

Individual mandate tax relief: 82,060 Wisconsin households are no longer stuck paying the much-loathed individual mandate tax, thanks to the TCJA's elimination of this tax. 80% of Wisconsin households hit with this tax made less than $50,000 per year. Be warned, Joe Biden wants to bring this tax back from the dead, one of the many reasons Biden can't be trusted on taxes.

424,970 Wisconsin households are benefiting from the TCJA’s doubling of the child tax credit.

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

1,954,190 Wisconsin households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Wisconsin residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Madison Gas & Electric, Alliant Energy, Wisconsin, Superior Water, Light & Power, and We Energies (see below) all passed along tax cut savings to their customers.

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

MusicNotes (Madison, Wisconsin) – Salary increases for employees:

The new year brings a new salary increase for all 55 employees at Musicnotes, Inc., the worldwide leader in digital sheet music based in Madison, Wisconsin. Effective January 1st, the 3% salary increase is tied specifically to corporate tax reform and is in addition to Musicnotes' existing annual raises to eligible employees.

"We're genuinely appreciative of our loyal and gifted team at Musicnotes and we are thrilled to share the benefit of lower corporate taxes with them," said Executive Chairman, Tim Reiland. "It's the right thing to do and it's also smart business."

After a strong 2017 sales performance, Musicnotes was named to the Internet Retailer Top 1000 list for the 13th straight year in 2017 and garners over half of the worldwide digital sheet music market, according to traffic statistics from SimilarWeb. The company has sold products to over six million customers since 1998.

"Musicnotes has paid a full corporate tax rate over the past several years," indicated Reiland. "Beyond the Jan 1 salary increases, we will accelerate hiring plans and also have increased flexibility regarding technology projects and investment opportunities in 2018 and beyond." – Jan. 8, 2018 MusicNotes press release

Quad/Graphics (Sussex, Wisconsin) - Giving employees stock for their retirement accounts:

Quad/Graphics Inc., the international printing company based in Sussex, said this week that Instead of a one-time bonus, the company will transfer roughly $22 million in Quad/Graphics stock to its employees' retirement accounts.

In his fourth quarter 2017 earnings call with analysts this week, chairman, president and CEO Joel Quadracci said the stock gift was "made possible by tax reform legislation."

"We received a benefit from tax reform and decided it made sense to invest this back into our employee base who is helping drive our transformation as a company," said company spokeswoman Claire Ho.- February 23, 2018, Milwaukee Business Journal article excerpt

Trico (Pewaukee, Wisconsin) -- 401(k) expansions, bonuses, and creation of new jobs:

For example, as a direct result of the tax cuts, full-time employees at the Pewaukee-based Trico Corporation will receive $650 bonuses and increased contributions into their 401(k) accounts. The company will also hire more full-time workers to fill new positions. - April 17, 2018, Rep. Jim Sensenbrenner article excerpt

Brian's Electric (Stratford, Wisconsin) – The Tax Cuts and Jobs Act allowed the company to increase wages:

Jacobs told Budget & Tax News he has passed the benefits of TCJA along to his employees,

“I gave out, when you add it all up, about $150 an hour worth of wage increases,” Jacobs said. “Depending on how they have their taxes taken out of their checks, the lowest was around $14 a week in net take home pay, all the way up to $65 in net take home pay.” – Sept. 12, 2018, Heartland Institute article.

The Platform (Milwaukee, Wisconsin) -- The company is building a co-working space and food hall which is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Developers offered look Monday at the progress on a $16 million project to turn a cold storage building into a co-working space and food hall in the Milwaukee Junction neighborhood.

The first floor-to-ceiling window has been installed in the nine-story building at 2937-67 E. Grand Blvd. It will be among dozens of windows that will pour light into the long-abandoned building known for its rainbow-colored mural.

"It is a relatively small project but because it is out of the norm, it attracts a great deal of interest," said Peter Cummings, executive The Platform, the Detroit-based development group undertaking the project.

For example, the Chroma project falls under Opportunity Zone rules that allow investors to reduce or avoid capital gains taxes by investing in designated areas. Ferrari will participate in a session Tuesday on the topic of successful opportunity zone investments. -- April 30, 2019 Detroit News article

Koehler Flooring, Inc. (Green Bay, Wisconsin) – This family carpet and flooring company gave $1,000 bonuses to seven full-time employees:

“The tax reform bill is a huge win for the USA and will have positive effects on our floor covering business. Our customers have more capital to use for expansion and remodeling which is great news for all construction trades. There is more work to be done on the tax code but it's nice to see this recent reversal on punishing success. My crew was very happy to receive their tax reform good news.” -- David Koehler, President.

Americollect (Manitowoc, Wisconsin) $300 - $500 bonuses for 250 employees:

A Manitowoc-based company will give its roughly 250 employees a bonus following Congress's passage of the tax reform bill the Tax Cuts and Jobs Act.

In an email to employees Wednesday, Americollect President and CEO Kenlyn T. Gretz said: “Today, Congress passed the tax reform bill; our company will be taxed less because of it. Since we will now be taxed less, I wanted to take this opportunity and utilize this financial benefit to give back to each of you, our teammates, by directly impacting your paycheck in the form of a bonus!”

Gretz said: “We find great joy in being able to provide this bonus to the employees, who really are the heart and soul of what we do. Full-time employees can expect to see as much as a $500 bonus come 2019 and even part-time employees will be included.” -- Dec. 21, 2017 Manitowoc Herald Times article excerpt

Melron Corporation (Schofield, Wisconsin) -- The company was able to give employees a pay raise because of the Tax Cuts and Jobs Act:

Thanks to the trump tax cuts, I've been able to raise my employees wages so they got a pay raise and the tax cuts. Even in the face of the pandemic the president doubled down on his support for business. -- Debbie Flood Speech at RNC, Aug. 27, 2020

American Family Insurance (Madison, Wisconsin): 11,000 workers will receive a $1,000 bonus:

“American Family Insurance said Friday it will give 11,000 workers a one-time bonus of $1,000, becoming the latest U.S. company to pass some of the savings from federal tax reform to employees.

The Madison-based insurer said the reduction in the corporate income tax rate also would help fuel permanent changes to its employee benefits program, such as expanded tuition reimbursement, help paying student loans and scholarships for workers who pursue a post-high school degree.

In addition, American Family said its family leave program now will provide employees with paid leave to care for an ill child of any age or for a spouse or domestic partner.

“Our success rests with our people who are dedicated to helping our customers,” Bill Westrate, American Family Insurance president, said in a statement. “These changes demonstrate our commitment to our people, today and into the future, with expanded benefits and educational support, and to the communities where we do business.”

American Family said Friday the company will contribute $10 million to its Dreams Foundation, which supports programs and provides grants to nonprofits. This year, American Family said, the foundation will provide a one-time, two-to-one match for employee and agent donations to qualifying charities, a boost from the one-to-one match in place since the Dreams Foundation was established in 2016. – Jan. 26 2018, Milwaukee Journal Sentinel article excerpt

Twisted Path (Milwaukee, Wisconsin) – Because of the Tax Cuts and Jobs Act, the business is planning on hiring new employees:

With less than 20 days until the Craft Beverage Modernization and Tax Reform Act expires, local craft distillers are getting nervous. Brian Sammons, owner of Twisted Path Distillery in Milwaukee's Bay View area and president of the Wisconsin Distillers Guild, said the last few weeks have been scary for him and his small craft business.

"It's goofy to have this much business uncertainty just hanging in the balance," Sammons said.

…..

Sammons only has two full-time employees and four part-time. He is waiting to hire a full-time sales and marketing person because of the act's uncertain future.

Local distillers such as Sammons points to the political distractions in the House and Senate as a reason for the act's idleness. The act is bipartisan with 326 co-sponsors in the House and 73 co-sponsors in the Senate, more than three-quarters representation in each chamber. – Dec. 16, 2019, Milwaukee Business Journal article.

Sprecher Brewing Company (Milwaukee, Wisconsin) – The brewery used savings from the Tax Cuts and Jobs Act to reinvest in the company and create new jobs:

"Other breweries in this area are certainly doing the same thing with the savings they get as we are here," said Jeff Hamilton, president of Sprecher Brewing Company. "This act gave a bit of a tax break to all alcohol producers."

Right now, the team at Sprecher said the money saved from the tax breaks goes back into the business.

"Gives us additional funds that can be reinvested back into the company," Hamilton said. "Back into creating additional products, which on top of that creates new jobs." – Oct. 9, 2019, Fox 9 article.

RF Development (Menasha, Wisconsin) -- The company is redeveloping a building and creating commercial and residential space in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Alderman Stan Sevenich said the proposed $10 million redevelopment of the former Brin Building property could be one of the best things to happen in Menasha in the past 100 years.

"I actually think that this is probably going to be the catalyst that will really turn Menasha into the gem of the Valley," Sevenich told The Post-Crescent.

RF Development of Menasha, the same group that owns the former City Hall at 140 Main St., intends to construct a three-building commercial and residential complex on the Brin site at the southeast corner Main and Tayco streets.

Sevenich and the rest of the Common Council reviewed the proposal Dec. 16 and unanimously directed city staff to negotiate a development agreement for the project.

The agreement could come back to the council for approval as soon as January. Sevenich said RF Development could begin construction by late spring.

"This is going to be somewhat on the fast track," Sevenich said.

The development has a tentative completion date of spring 2021.

According to plan, RF Development would purchase the Brin property from the city for $1 and then redevelop it as follows:

Building 1: A three-story mixed-use building at the corner would have 8,148 square feet of commercial space on the ground floor and 16 market-rate apartments on the upper floors.

Building 2: A four-story residential building along Tayco would have 30 market-rate apartments. The two apartment buildings would be connected by a skywalk.

Building 3: A 3,000-square-foot restaurant near the Fox River navigational canal.

Parking: The development would have 40 underground stalls and 55 surface stalls.

Mayor Don Merkes said the project would set the tone for future developments and would offer connections to the city's trails and waterfront.

"I think it really sends a good message as you're coming into town that this is the entry to our downtown and this is what you can expect to see when you're downtown," Merkes told The Post-Crescent.

Sam Schroeder, the city's director of community development, described the proposal as "an iconic and influential project that will lead a path of urban renewal and growth in our downtown."

Menasha officials had been marketing the site to potential developers to create a new anchor for the downtown. The site lies in an Opportunity Zone, which provides investors with certain federal tax advantages. -- December 25, 2019 The Post-Crescent article

White Lotus Group (Milwaukee, Wisconsin) -- The company announced that they will be building 100 affordable apartments located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The former Fletcher School property near Northridge Mall in Milwaukee could be sold to developer White Lotus Group for 100 new affordable apartments and community spaces for local social service groups including the YMCA. White Lotus Group, based in Omaha, Nebraska, expects the project will cost $28 million, according to a city of Milwaukee report on the proposed property sale. The one-story school at 9500 W. Allyn St. has been vacant since 2009. The city would sell it for $500,000.

White Lotus has a “special affinity” for rehabbing vacant former schools into housing, and is exploring multiple opportunities to do that in Milwaukee, said Scott Henry, executive vice president of development in the company’s Chicago office.

“The real estate tends to be good, the buildings tend to be built well and solidly and they are beloved properties in the community that people want to see saved,” he said. White Lotus would build three vertical floors on top of the existing Fletcher school for a mix of one-, two- and three-bedroom apartments. The first floor would have about 70,000 square feet of community space dedicated for local social-service organizations. Those organizations could provide financial literacy training, or help people find jobs, for example, Henry said.

Potential partners for that space are the YMCA, Social Development Commission and CrossWay Church, according to the city report. The apartments would be for people making 50% to 80% of the area’s median income level, Henry said. It would become a modern housing option for people in the local workforce, he said. White Lotus must secure low-income housing tax credits to finance the development. It would apply in December to the Wisconsin Housing and Economic Development Authority to compete for them. If White Lotus succeeds in winning the credits, it would buy Fletcher School in August 2020.

Evers reveals businesses allowed to operate under Safer at Home order Businesses allowed to operate under the Safer at Home order include banks and health care operations COMING EVENT Power Breakfast June 19 White Lotus plans to use other public financing mechanisms to pay for the project. Those include the federal Opportunity Zone program, Henry said. The federal Opportunity Zone program offers tax breaks to investors who put money received from capital gains into developments in low-income areas. White Lotus usually works with larger corporations seeking to invest multimillion-dollar sums through the Opportunity Zone program. While that financing would be available for Fletcher School, Henry said there’s also room for local investors who may want to participate. -- November 11, 2019 Milwaukee Business Journal article

Madison Gas & Electric (Madison, Wisconsin) - The utility is passing along tax cut savings to customers:

Madison Gas & Electric will return a one-time credit of $9.23 to its residential electric customers and $4.80 to natural gas customers by July 31. After that, electric bills will dip about $1.56 a month and gas bills by about $1 a month in 2018, MGE spokesman Steve Schultz said. That totals about $8 million worth of credits, according to PSC calculations.

The money represents excess taxes the companies have been collecting from ratepayers. Utility rates, set in advance, anticipated a 35 percent corporate tax rate. But Congress, in its tax reform package, lowered the rate to 21 percent. – May 26, 2018 Wisconsin State Journal article excerpt

Great Lakes Distillery (Milwaukee, Wisconsin) – Used savings from the Tax Cuts And Jobs Act to add space and buy new equipment:

When the Craft Beverage Modernization and Tax Reform Act was passed two years ago, Great Lakes Distillery founder and owner Guy Rehorst was able to make a lot of advances to his business with the added savings. He added space to his Walker's Point distillery at 616 W. Virginia St. in Milwaukee. He also added new equipment and new personnel and began producing more product for future sale. – Dec. 10, 2019, Milwaukee Business Journal.

Stillmank Brewery (Green Bay, Wisconsin) – The owner of the brewery said that he was able to use savings from the Tax Cuts and Jobs Act to create new jobs and grow his company:

It did help us,” Brad Stillmank, Owner and Brewer at Stillmank Brewery in Green Bay said, “you know, accelerate our growth to where we are now.”

Stillmank added that his brewery currently produces between 1,500 and 2,000 barrels of beer annually, meaning that with the tax cuts, his business is saving almost $7,000 every year.

He explained that breweries are still taxed in other ways, despite the cut, “We’re still responsible for paying all the other taxes that any other business would have to, this is just a tax that’s above and beyond for our particular business segment.”

....

Stillmank says that over the past two years, he has been able to invest more in his business and the community, evening hiring extra personnel as a result of the tax breaks.

“For the last two years we’ve been doing our best to take advantage of the opportunity that we have had with that,” he explained, “and we have grown our company and we have added employees.”

Without the tax cuts, Scanzello told Local 5 he worries that that kind of growth will falter across the area, including in businesses that supply local breweries.

“Cleaning chemical companies, hop purveyors, or equipment manufacturers are all going to be impacted by anything that’s going to stunt the growth in the industry,” he said. – Dec. 11, 2019, CBS Green Bay Article.

Alliant Energy, Wisconsin (Madison, Wisconsin) - The utility is passing along tax cut savings to customers:

Alliant said its retail electric costs will rise by a total of $194 million in 2019 and 2020 as it brings on the 700-megawatt, natural gas-fueled West Riverside power plant near Beloit in the second half of 2019.

Alliant’s natural gas expenses are projected to rise $24 million over that period.

But rather than raising customer rates, the utility said it will cut costs via fuel savings and income tax reductions. - May 26, 2018 Wisconsin State Journal article excerpt

Superior Water, Light & Power (Superior, Wisconsin) – the utility is passing along tax reform savings to customers:

Residential customers of Superior Water, Light & Power will receive a $31.80 lump-sum credit on July bills as a result of savings accrued from the tax law Congress passed last year, according to an order issued Thursday by the Public Service Commission.

Customers in all categories will receive lump-sum and ongoing credits for each provided service. The largest electrical customer will receive a $61,807 lump sum credit and other non-residential customers will receive lump-sum electric credits varying from $13.70 to $3,106 depending on customer classification, according to the PSC order.

SWL&P estimated its total customer credits this year at $1.322 million. – May 29, 2018, Superior Telegram article excerpt

We Energies (Milwaukee, Wisconsin) – the utility is passing along tax reform savings to customers:

We Energies electric customers will receive a one-time credit in July and a slight decrease in electric rates in subsequent months from a portion of the savings from the company's lower federal corporate tax rate, state regulators decided on Thursday.

The Public Service Commission determined that 20 percent of the immediate savings from the lower tax rate should be passed on to customers.

The remaining 80 percent of the savings will go toward paying down deferred costs that stood at $424.5 million as of Dec. 31 but that are not included in current rates.

"It will be a win-win for our customers — providing an immediate bill credit while also helping to reduce future rate increases," Cathy Schulze, a We Energies spokeswoman, said in an email. - April 26, 2018, Milwaukee Journal Sentinel article excerpt

Central Standard Distillery (Milwaukee, Wisconsin) – The Tax Cuts and Jobs Act allowed the distillery to hire four new employees, invest in a new facility, and ordered a new bottling line:

Central Standard Distillery co-owner Evan Hughes said his business was able to grow faster than it normally would because of the act. He attributes four key growth areas to the success of the act, including: Central Standard hired four new employees, bringing staff totals to 22 people. The company invested in a 15,000-square-foot facility on Clybourn Street. In addition, Central Standard ordered a new bottling line for improved efficiency and offered health care to all of its employees.

"It gave us the courage to expand our business quicker than we normally would," Hughes said. – Dec. 10, 2019, Milwaukee Business Journal.

Associated Bank (Green Bay, Wisconsin) – a base wage increase from $10 to $15 per hour and $500 bonuses:

Associated Bank today announced plans to raise its minimum hourly wage from $10 to $15 per hour and to distribute a one-time bonus of $500 for all hourly, non-commissioned employees once tax reform legislation is signed into law.

The pay increase and one-time bonus are expected to be distributed during the first pay cycle of 2018. This combined investment in the company's workforce will positively impact 55% of its employees.

"Every day our customers share stories of our colleagues delivering a positive customer experience," said Associated Bank President and CEO, Philip B. Flynn. "Our ability to recognize their work in this way is something we are proud to do."

Flynn said the new tax legislation, particularly the reduction in business tax rates, allowed the company to share some of the benefits with its employees. It also helps position the company to further enhance the customer experience and its community investments in the future. -- Dec. 21, 2017 Associated Bank press release

Blue Harbor Resort (Sheboygan, Wisconsin) -- $1,000 bonuses:

The Forsythe Family today dedicated a one-time cash bonus of $1,000 to each eligible Blue Harbor employee.

The Forsythe Family’s financial dedication to Blue Harbor employees is in direct response to President Trump’s Tax Cuts and Job Act of 2017. – Jan. 25, 2018 MySheboygan.com article excerpt

Copperleaf Assisted Living (Stevens Point, Wisconsin) – $200 - $600 bonuses for 175 employees:

An assisted-living business will give its 175 employees bonuses up to $600 as a result of the tax reform package passed by Congress and signed by President Trump on Friday.

Krista Mendyke, who owns Copperleaf Assisted Living with her husband, Jim, said they will give away all of the company's estimated tax savings as a result of the legislation.

Copperleaf, which is based in Stevens Point, also has facilities in Schofield, Marathon City, Ripon and Adams.

"It's really to bring awareness to what's going on in our country and how it impacts them ... and that businesses and corporations do want to do the right thing," Mendyke said Friday.

Every employee will receive a bonus, which will start at $200 and be tiered based upon the worker's status of casual, part-time or full-time. About 60 full-time employees will receive the maximum bonus of $600, she said.

Mendyke said she and her husband will visit each facility on Tuesday to hand out the bonus checks.

In total, they are giving away $60,000 in bonuses, "our entire tax savings" estimated for 2018 based on changes to business income tax rates, she said.

"I called (our accountant) yesterday and I said, what does this mean for us, a company our size?" Mendyke said Friday. "They sent us a projection and we're going to go ahead and pass that on." – Dec. 22, 2017 Stevens Point Journal article excerpt

CUNA Mutual Group (Madison, Wisconsin) – $20 million in charitable contributions:

"CUNA Mutual Group said Tuesday the company is making its largest contribution ever to its philanthropic foundation, a $20 million donation made possible in part by federal tax reform." -- Feb. 13 2018, Journal Sentinel article excerpt

BMO Harris Bank – 200 locations in Wisconsin -- base wage raised to $15 per hour; increased charitable donations:

“BMO Harris Bank has joined an increasing number of financial institutions in raising its minimum hourly wage to $15.

The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.

The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto's BMO Financial Group, has more branches than any other bank in Wisconsin.

BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.

“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt

Johnson Bank (Racine, Wisconsin) – base wage raised to $15 per hour.

North Shore Bank (Brookfield, Wisconsin) -- $500 bonuses.

Plexus Corp. (Neenah, Wisconsin) – cash bonuses for non-executive employees:

“In order to reward employees for their contributions towards Plexus’ success, Plexus will provide existing, full-time, non-executive employees a one-time cash bonus. This bonus will be provided in the fiscal second quarter to nearly 16,000 employees, totaling approximately $13 million.” – Feb. 20 2018, Plexus press release excerpt

Robert W. Baird & Company (Milwaukee, Wisconsin) – Cash bonuses of up to $1,500; charitable contributions:

“Milwaukee's Robert W. Baird & Co. said it will pay cash bonuses of $500 to $1,500 to employees, joining the list of Wisconsin companies passing along some of the benefits of federal tax reform to their workers.

All full-time and part-time benefit-eligible employees of the financial services firm — except company leaders — will receive a $1,500 one-time cash bonus. Other part-time associates and long-term interns will receive a bonus of $500, Baird said.

Baird leaders will receive the benefit in the form of a $1,500 donation to the charity of their choice, which could amount to an additional $1.2 million being contributed to the community in 2018, the company said.

The one-time benefit will be awarded to Baird's more than 3,500 global employees and amounts to more than $5 million.” – March 2 2018, Milwaukee Journal Sentinel article excerpt

AT&T -- $1,000 bonuses to 2,684 Wisconsin 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

Home Depot -- 27 locations in Wisconsin, bonuses for all hourly employees, up to $1,000.

Lowe's -- 1,000 employees at 8 stores and one distribution center in Wisconsin. 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.

Apple (Apple store locations in Glendale, Madison, and Wauwatosa) -- $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.

Walmart – 89 stores in Wisconsin; Bonuses of up to $1,000; base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo – 51 locations in Wisconsin; 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.

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

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

Comcast (Multiple locations in Wisconsin) -- $1,000 bonuses; Nationally, at least $50 billion investment in infrastructure in next five year.

Ryder (Fourteen locations in Wisconsin) – Tax reform bonuses.

Starbucks Coffee Company (145 locations in Wisconsin) –$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 Wisconsin) – $1,200 bonuses for full-time employees, $500 for part-time employees.

McDonald’s (325+ locations in Wisconsin) – 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:

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.

Note: If you know of other Wisconsin 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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Posted by Alex Hendrie on Thursday, September 17th, 2020, 12:58 PM PERMALINK

Price controls on prescription medicines proposed by President Trump and House Speaker Nancy Pelosi (D-Calif.) could have a significant negative economic impact on key states including Florida, Pennsylvania, Michigan, and North Carolina.

President Trump recently signed a “most favored nation” executive order that adopts foreign, socialist price controls by tying the prices we pay for medicines to the artificially low prices set by other countries. In addition, Speaker Pelosi has proposed H.R. 3, legislation that would force manufacturers to accept government set prices on hundreds of medicines or face a 95 percent excise tax.

Ahead of the 2020 election, lawmakers should consider the impact such proposals would have on jobs and the economy.

Nationwide, the pharmaceutical industry directly or indirectly accounts for over four million jobs across the U.S, according to research by TEconomy Partners, LLC. This includes 800,000 direct jobs, 1.4 million indirect jobs, and 1.8 million induced jobs, which include retail and service jobs that are supported by spending from pharmaceutical workers and suppliers.

The average annual wage of a pharmaceutical employee in 2017 was $126,587, which is more than double the average private sector wage of $60,000.

These jobs support $1.1 trillion in total output, a significant contributor to the overall economy considering U.S. GDP at the end of 2017 was $19.7 trillion, according to the Bureau of Economic Analysis.

In addition to threatening jobs and the economy, price controls could have significant political impacts. For instance, in Michigan and Pennsylvania, the number of pharmaceutical jobs exceed Trump’s margin of victory in 2016. In Florida and North Carolina, the total number of direct, indirect and induced jobs exceed Trump’s margin of victory.

State	2016 Trump margin of victory	Number of direct pharmaceutical jobs	Number of direct, indirect, and induced pharmaceutical jobs
Florida	112,911	25,757	130,903
Pennsylvania	44,292	46,830	253,876
Michigan	10,704	15,982	86,485
North Carolina	173,315	44,969	251,053

Economic and political impacts of price controls in Florida

Pharmaceutical manufacturers directly employ 25,757 workers in Florida. When accounting for direct, indirect, and induced jobs, manufacturers are responsible for an estimated 130,903 jobs. These jobs contribute an estimated $29 billion in economic impact per year.
In the 2016 presidential election, Florida was decided by a margin of 112,911 votes. Donald Trump won the state by 48.6 of the vote, receiving 4,617,886 votes to Hilary Clintons 4,504,975 votes.
If all 25,757 workers directly employed by the pharmaceutical industry in Florida voted as a bloc, they could have had a significant impact on the outcome. If all 130,903 workers whose jobs were directly or indirectly related to the pharmaceutical industry as a bloc, they could have decided who won the state.

Economic and political impacts of price controls in Pennsylvania

Pharmaceutical manufacturers directly employ 46,830 workers in Pennsylvania. When accounting for direct, indirect, and induced jobs, manufacturers are responsible for an estimated 253,876 jobs. These jobs contribute an estimated $67 billion in economic impact per year.
In the 2016 presidential election, Pennsylvania was decided by a margin of 44,292 votes. Donald Trump won the state with 48.2 percent of the vote, receiving 2,970,733 votes to Hillary Clinton’s 2,926,441 votes.
If all 46,830 workers directly employed by the pharmaceutical industry in Pennsylvania voted as a bloc, they could have decided who won the state. If all 253,876 workers whose jobs were directly or indirectly tied to the pharmaceutical industry voted as a bloc, they would constitute a group five times the margin of victory.

Economic and political impacts of price controls in Michigan

Pharmaceutical manufacturers directly employ 15,982 workers in Michigan. When accounting for direct, indirect, and induced jobs, manufacturers are responsible for an estimated 86,485 jobs. These jobs contribute an estimated $22 billion in economic impact per year.
In the 2016 presidential election, Michigan was decided by a margin of 10,704 votes. Donald Trump won the state with a 47.3 percent of the vote, receiving 2,279,543 votes to Hilary Clinton’s 2,268,839 votes.
If all 15,982 workers directly employed by the pharmaceutical industry in Michigan voted as a bloc, they could have had decided who won the state. If all 86,495 workers whose jobs were directly or indirectly related to the pharmaceutical industry voted as a bloc, they would constitute a group eight times the margin of victory.

Economic and political impacts of price controls in North Carolina

Pharmaceutical manufacturers directly employ 44,960 workers in North Carolina. When accounting for direct, indirect, and induced jobs, manufacturers are responsible for an estimated 251,053 jobs. These jobs contribute an estimated $74 billion in economic impact per year.
In the 2016 presidential election, North Carolina was decided by a margin of 173,315 votes. Donald Trump won the state with 49.8 percent of the vote, receiving 2,362,631 votes to Hilary Clinton’s 2,189,316 votes.
If all 44,969 workers directly employed by the pharmaceutical industry in North Carolina voted as a bloc, they could have had a significant impact on the outcome. If all 251,053 workers whose jobs were directly or indirectly related to pharmaceutical industry as a bloc, they would make up a group about one and a half times the margin of victory.

Photo Credit: Chris Potter

Posted by Mike Palicz, Alex Fried on Thursday, September 17th, 2020, 12:33 PM PERMALINK Follow @Mike_Palicz

In an interview earlier this month on Tucker Carlson Tonight, Mayor Andrea Zupancich, one of six Democrat mayors from Minnesota who have endorsed President Donald Trump for reelection, explained that her support is tied to the Trump administration’s pro-mining agenda.

In the backdrop of the interview is a major decision awaiting the Trump administration as it's poised to make a permitting decision on Pebble Mine, the world’s largest undeveloped copper and gold mine.

Mayor Zupancich stated her endorsement is due to President Trump’s strong support for mining rights and the hard-working individuals of mining communities. Zupancich also criticized the Democrat Party for failing to represent her community and for ignoring the importance of copper and other precious metals critical for developing cleaner energy.

“We are sitting on billions of tons of copper, nickel, and precious metals. Everything that supports the green deal energy that everyone wants right now, and we are just not seeing the support on the other side,” Zupancich explained.

“You can’t have energy of any kind without copper,” host Tucker Carlson agreed. “And you supply it. That’s not a negotiable. You have to have it,” he continued.

Mayor Zupancich is not the only Minnesota politician touting the importance of the Trump administration’s pro-mining agenda. Congressman Pete Stauber (R-Minn.) recently stressed the importance of Polymet Mine, a proposed copper and nickel mine in Minnesota awaiting permitting approval from the Trump administration and estimated to generate more than $500 million in annual economic activity. Rep. Stauber told Forbes that opening the mine would be akin to “bringing the Super Bowl up to northeastern Minnesota every year.”

Rep. Stauber also urged the Trump administration to stay the course on permitting for critical mining projects such as Pebble Mine, explaining that Minnesotans are now watching what the Trump administration is doing on Pebble Mine and hoping that the President will reject pressure from the environmental left.

Stauber noted that “to see the administration allow outside influences change the course of this potential project without going through the normal regulatory process, without allowing science, facts and the truth to dictate” would be cause for great concern in his state. Stauber also echoed Mayor Zupancich’s criticism of Democrats for not backing American mining. “Projects in Minnesota continue to be delayed by outside, well-funded political machines and it was a hallmark of the Obama-Biden administration,” exclaimed Stauber.

Minnesota, like many other states, has a strong mining community made up of small towns that provides copper and critical minerals for our entire nation’s energy grid. The elected leaders of these communities, regardless of their political party, are beginning to make it clear that they stand with the Trump administration’s pro-mining agenda.

The exchange between Tucker Carlson and Mayor Zupancich is below:

DEMOCRAT MAYOR ANDREA ZUPANCICH – BABBITT, MINNESOTA: “It’s not a matter of who we are supporting. It is a matter of what the Democratic party is representing right now. President Trump is actually supporting our mining ways, our rights, and everything else we stand for up here. We are hard-working individuals. We’ve got an amazing workforce up here. And we just don’t see the backing with the minerals that we have up here. We are sitting on billions of tons of copper, nickel, and precious metals. Everything that supports the green deal energy that everyone wants right now, and we are just not seeing the support on the other side.”

TUCKER: “Right. You made two good points. You can’t have energy of any kind without copper. And you supply it. That’s not a negotiable. You have to have it.”

MAYOR: “We don’t want to be getting our minerals from somewhere where they have child labor working and no safety standards. When we have it all right here. We have the strictest environmental standards and everything else going on. I would much rather drink the water out of my tap than down in other metro areas.”

TUCKER: “For 100 years the Democratic party was the party that represented people in your town who worked in the Iron Range. People who worked. Now they [Democrats] are not [representing the area]. What happened?”

Photo Credit: Wikimedia Commons

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Posted by Katie McAuliffe on Thursday, September 17th, 2020, 10:20 AM PERMALINK Follow @DigitalLiberty

In a House hearing with the title “Trump FCC: Four Years of Lost Opportunities,” we all know this is a set up for political grandstanding.

The title is bogus. Completely false.

Americans for Tax Reform joined a coalition letter sent to the Subcommittee on Communications and Technology Chairman, Congressman Mike Doyle, and Ranking Member, Bob Latta, describing the long list of accomplishments from this FCC’s commissioners and staff.

These are hardly lost years.

Read the letter below.

September 17, 2020

Dear Chairman Doyle and Ranking Member Latta:

As the American economy continually demands more and faster internet connectivity, the Federal Communications Commission under Chairman Ajit Pai took that demand seriously even before the global pandemic struck. This is why the title of this hearing “Trump FCC; Four Years of Lost Opportunities” is a serious disappointment. We understand this is an election year, but there is no reason to politicize telecommunications and technology issues in an attempt to deny the Federal Communications Commission staff and all five commissioners rightful acknowledgement of their significant accomplishments.

Chairman Pai instituted unprecedented transparency by releasing orders three weeks ahead of open meetings. Prior to this FCC, the regular practice was for commissioners to vote on items, but the public had to wait until publication in the Federal Register before seeing the final text – text, which previously was often leaked to key lobbyists and friends of commissioners who could then lobby for changes while the rest of the public was left out of the loop. The launch of the transparency dashboard provides the public a better understanding of the interworking of the FCC and its process, limiting the power of insiders and democratizing the system. Other process reforms included the creation of the Advisory Committee on Diversity and Digital Empowerment and creation of Office of Analytics and Economics.

At a time when America is rethinking the role of law enforcement, this FCC was already making tangible steps for change. They instituted 988 as the national suicide hotline, which will be staffed by mental health professionals. Of utmost importance, this FCC legally limited the rates that federal prisons can charge inmates for calling services, dropping the per minute rate from $0.21 to $0.14 for debit, prepaid, and collect calls, capped for international call rates, and disallowed most ancillary charges, while imploring state authorities to do the same for intrastate rates in their prisons and jails.

During the pandemic, internet access is more important than ever. The FCC worked with providers to Keep Americans Connected, a hugely successful public-private partnership that enabled struggling Americans to remain online, even if they are unable to pay their bills. They opened up emergency use of spectrum to carriers and tribal nations on an unprecedented timeline and moved at an equal pace to make telehealth more widely available and transition to the connected care future.

Because of policies instituted prior to the pandemic by the FCC, American networks proved resilient, despite unexpected increases in internet traffic. While the Title II version of “net neutrality” has been a pet project of activists on the Left, time and data demonstrated that these policies would have harmed U.S. networks. In 2018, after the repeal of the very short-lived Title II regulations, investment in broadband networks shot up to $80 billion. New research released by US Telecom shows that the “most popular tier of broadband service costs 20.2 percent less and is 15.7 percent faster in 2020 when compared to 2015.” The U.S. jumped from 12th place globally to 7th in terms of internet speed after the implementation of the Restoring Internet Freedom Order. Further evidence of the success of this FCC’s approach to broadband is clear when examining the performance of US networks in contrast to the slower speeds and congestion Europe’s heavily regulated networks are currently experiencing during the pandemic.

Today, 94 percent of Americans have access to high speed internet. The goal of this FCC is 100 percent, but that is not a license for waste or political favoritism. Recent reforms targeting waste fraud and abuse have flushed out companies with no intent of providing service, and streamlining the permitting process allows both wireline and wireless to deploy more efficiently. Updating the Rural Digital Opportunities Fund with a reverse auction will increase the usefulness and availability of broadband subsidies, resulting in more Americans connected without budget increases.

The FCC has also considered novel approaches to provision broadband service that may be better suited than traditional means for connecting the unconnected in rural regions. Some of these methods include opening up TV whitespaces and licensing new satellite networks.

Finally, and most impressive of all, is the progress made on the 5G FAST plan. In the last four years available spectrum has entered the pipeline at an extraordinary rate, including the largest swath of unlicensed spectrum, 1200 MHz, released in 20 years. There is a bipartisan consensus that American leadership in the 5G arena both in standards setting and deployment, will significantly grow our economy. The mix of mid and high-band spectrum will be crucial for American innovation in the 5G space. The FCC’s 5G FAST Plan is a forward-thinking roadmap for the US to fully realize the promise of the 5G future.

While there are many more accomplishments we could list, we will stop here and urge you to thank all five FCC Commissioners, Chairman Ajit Pai, Commissioner Mike O’Rielly, Commissioner Jessica Rosenworcel, Commissioner Brendan Carr, and Commissioner Geoffery Starks, and the entire FCC staff for their valuable work that should not be dismissed as “lost opportunities.”

Respectfully,

Grover Norquist, President, Americans for Tax Reform

Doug Holtz-Eakin, PresidentAmerican, Action Forum*

Jennifer Huddleston, Director of Technology and Innovation Policy, American Action Forum*

Steve Pociask, President / CEO, American Consumer Institute

Krisztina Pusok, Director of Policy and Research, American Consumer Institute

Brent Wm. Gardner, Chief Government Affairs Officer, Americans for Prosperity

Andrew F. Quinlan, President, Center for Freedom and Prosperity

Thomas Schatz, President, Council for Citizens Against Government Waste

Ashley Baker, Director of Public Policy, The Committee for Justice

Jessica Melugin, Associate Director, Center for Technology & Innovation, Competitive Enterprise Institute

James Edwards, Executive Director, Conservatives for Property Rights

Matthew Kandrach, President, Consumer Action for a Strong Economy

Katie McAuliffe, Executive Director, Digital Liberty

Adam Brandon, President, FreedomWorks

George Landrith, President, Frontiers of Freedom

Mario H. Lopez, President, Hispanic Leadership Fund

Carrie Lukas, President, Independent Women’s Forum

Heather R. Higgins, CEO, Independent Women’s Voice

Tom Giovanetti, President, Institute for Policy Innovation

Seton Motley, President, Less Government

Brandon Arnold, Executive Vice President, National Taxpayers Union

Lorenzo Montanari, Executive Director, Property Rights Alliance

James L. Martin, Founder/Chairman, 60 Plus Association

Saulius “Saul” Anuzis, President, 60 Plus Association

Karen Kerrigan, President & CEO Small Business & Entrepreneurship Council

David Williams, PresidentTaxpayer, Protection Alliance

James Dunstan,General Counsel,TechFreedom

*Individual signatory. Organization listed for identification purposes only.

Photo Credit: Gage Skidmore

Posted by John Kartch on Wednesday, September 16th, 2020, 2:49 PM PERMALINK Follow @johnkartch

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High Tax Joe 2020

Posted by John Kartch on Wednesday, September 16th, 2020, 12:35 PM PERMALINK Follow @johnkartch

Joe Biden and Kamala Harris will raise your taxes. They will impose income tax hikes, small business tax hikes, capital gains tax hikes, corporate tax hikes, a carbon tax, and will even bring back the much-hated Obamacare individual mandate tax.

September 16, 2020: Video: Meet the "Harris-Biden" Administration

September 15, 2020: Biden's Corporate Tax Rate Hike Will Hurt Small and Midsize Local Businesses

September 14, 2020: Biden Vows to Raise Taxes on "Day One"

September 9, 2020: Biden's Like-Kind Exchange Tax Hike Will Harm Jobs and Growth

September 9, 2020: Biden's Plan to End Pass-Through Deduction Will Raise Taxes on Small Businesses

September 8, 2020: Biden Cannot Be Trusted on Taxes -- His $400,000 Pledge is Bogus

September 1, 2020: Biden vs. JFK on Taxes: Video Shows Democrats Have Veered Hard Left on Taxes

September 1, 2020: Yes, Biden and Harris Will Ban Fracking

August 28, 2020: Video: Biden Will Raise Your Taxes, Trump Will Cut Your Taxes

August 26, 2020: Kamala Harris Campaign Headquarters Located in Opportunity Zone Created by Trump Tax Cuts -- Which Biden and Harris Want to Repeal

August 20, 2020: Biden and Harris Threaten Millions of Uber Drivers and Riders

August 19, 2020: Video: Nine Crazy Kamala Harris Quotes in 45 Seconds

August 19, 2020: Kamala Harris on Trump Tax Cuts: "Get Rid of the Whole Thing"

August 19, 2020: Kamala Harris Admits She Will Strip Everyone's Private Health Insurance

August 14, 2020: HYPOCRITES: Biden and Harris Slam Uber and Lyft But Have Used Them Over 1,400 Times

August 13, 2020: Kamala Harris and Joe Biden Vow to Abolish Your Right to Work

August 12, 2020: Video: Kamala and Joe Vow to Raise Your Taxes

August 11, 2020: Kamala Harris: "Get rid of the filibuster to pass a Green New Deal."

August 4, 2020: Video: Biden Vows to Raise Taxes Despite Obama Warning

July 28, 2020: Biden Threatens Freelancers and Independent Contractors Nationwide

July 27, 2020: Video: Biden Vows to Sacrifice "Hundreds of Thousands" of Jobs in Order to Impose Green New Deal

July 15, 2020: Biden Will Impose Highest Capital Gains Tax Rate Since Jimmy Carter in 1977

July 13, 2020: Biden Broke His Middle Class Tax Pledge

July 9, 2020: Even in a pandemic, Biden vows to impose higher corporate tax rate than communist China

May 27, 2020: Biden Vows to Bring Back the Individual Mandate Tax, A Violation of His Middle Class Tax Pledge

May 22, 2020: Joe Biden said: "Let's repeal the Trump tax cut."

May 22, 2020: Joe Biden said he wants to raise the corporate tax rate.

May 8, 2020: Joe Biden lies about the Tax Cuts and Jobs Act

April 5, 2020: Biden Endorses Another Tax Hike on Middle Class

March 11, 2020: Video compilation: How High Will Biden Raise Your Capital Gains Taxes?

March 6, 2020: Video Compilation: Joe Biden is Not a Moderate

Feb. 24, 2020: Video Compilation: Biden Will Raise Your Taxes By Eliminating Your Tax Cut

Feb. 7, 2020: Joe Biden said: "I'm going to raise the capital gains rate so that you pay capital gains at what your tax rate is."

Jan. 22, 2020: Joe Biden lied about the Tax Cuts and Jobs Act, claims it only benefited "top 2% of nation"

Jan. 9, 2020: Joe Biden lied about the Tax Cuts and Jobs Act.

Jan. 7, 2020: Joe Biden lied about his healthcare plan, says "no middle class tax" will occur.

Jan. 7, 2020: Joe Biden said: “Get rid of the Trump tax cut. No, not joking.”

Dec. 6, 2019: Joe Biden said: "We should charge people the same tax for their capital gains as their tax rate is. And I think we should raise the tax rate back to, for example, I take it back to where it was before it was reduced. It could go higher, but at 39.5%, 40% basically if you have that as the capital gains, that raises, I brought along, I’m not going to bore you with it, but you’ve seen it, I brought along a graph is how much money each of these things raise."

Dec. 9, 2019: Joe Biden said the capital gains tax rate "could go higher" than 40%

Oct. 28, 2019: Joe Biden said Trump’s $2,000 middle class tax cut is “negligible”

October 24, 2019: Joe Biden said: "So reduce the corporate tax cut, the tax payment to 20%? It needed to be reduced, but if we raise it back up to 28%, it was 39%, we can raise hundreds of billions of dollars."

October 23, 2019: Joe Biden said: “[Corporations] don’t need their tax cut reduced to 20 percent, it should be raised back to 28 percent."

October 23, 2019: Joe Biden said: “So every single solitary person, their capital gains are going to be treated like real income and they are going to pay 40 percent on their capital gains tax."

Oct. 15, 2020: Joe Biden said: "I would raise the capital gains tax to the highest rate of 39.5 percent, I would double it."

September 27, 2019: Joe Biden said: “I’m gonna double the capital gains rate to 40 percent."

September 20, 2019: Joe Biden said: “What I’d be focusing on is eliminating the $1.9 trillion tax cut that [Trump] passed."

September 4, 2019: Joe Biden endorses a carbon tax.

August 21, 2019: Joe Biden said: “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."

August 9, 2019: Joe Biden said: “By eliminating just a few of the tax cuts,” Biden said, then added, “I’m going to eliminate most all of them. No, you think I'm joking? I'm not."

July 30, 2019: VIDEO: 2020 Democrats Will Raise Your Taxes

July 16, 2019: Joe Biden said: “I would raise the corporate tax. I think we should have lowered it from 36 to 28 percent, but it got lowered to 20 percent. If we just raised it back to 28 percent, we would raise about 600 billion dollars a year. Look at all of the needs we have and the opportunities we have. Ladies and gentlemen, it begins by reversing those cuts.”

July 5, 2020, Joe Biden said: "Yes. Yes, I'd bring back the individual mandate."

July 5, 2019: Joe Biden said: "Well, three things. One, I do raise the tax rate to 39.5 percent. I do, in fact, eliminate the ability for them to write off capital gains the way they do now. I would raise the -- and raise billions of dollars -- raise the corporate tax rate from 20 percent to 28 percent.”

July 3, 2019: Joe Biden and Kamala Harris agree on one thing: Raising taxes

July 2, 2019: Joe Biden is running ads to "Repeal Trump's Tax Cuts."

June 22, 2019: Joe Biden said: "And folks, on day one, I will move to eliminate Trump's tax cuts."

June 17, 2019: Joe Biden said: “First thing I would do as president is eliminate the president’s tax cut."

June 4, 2019: Joe Biden said: “You go out and you make a capital gain you make a little bit of money on an investment you made and you're about to go and cash it in. You cash it in, you pay - now it's down to 20% is too low - but you pay you used to pay them 28%,"

June 3, 2019: Joe Biden said: “If you make a gain, you buy something, you buy stock or anything else and that increases from $1 to $2 or $1 - $2 million, and you want to cash it in, get the cash, you got to pay a capital gains tax much lower than what you’d pay in your regular taxes. It’s much too low now in my view, but that’s a different issue.”

May 28, 2019: Joe Biden said: “You buy something, you buy stock at a dollar it goes to two dollars. You buy a Million, it goes to a million five. When you cash that in to make the gain you made, you have to pay a capital gains tax, which I believe is much too low.”

May 13, 2019: Joe Biden said: “When I’m president, if God Willing I am, we’re going to reverse those Trump tax cuts.”

May 4, 2019: Joe Biden said: “First thing I’d do is repeal those Trump tax cuts."

Posted by Alex Hendrie on Wednesday, September 16th, 2020, 8:30 AM PERMALINK

Median household income increased by $4,440 or 6.8 percent in 2019 – the largest one-year wage growth in history.

In addition, the poverty rate declined from 11.8 percent to 10.5 percent, hitting a 50-year low, according to recently released Census Bureau data.

The 6.8 percent wage growth in 2019 exceeds the wage growth experienced during the entire Obama Administration. In 2008, median income was $59,877. By 2016, it had grown to just $62,898 – an increase of just $3,021 or just 5 percent.

Since 2016, real median household income has increased by almost 10 percent and was $68,703 in 2019. While this is benefiting Americans at every income level, lower wage workers are seeing their incomes grow faster than higher wage workers according to the Federal Reserve Bank of Atlanta.

According to the Census data, real median income increased at record levels in key demographics. African-Americans saw 7.9 percent wage growth, Hispanic Americans saw 7.1 percent wage growth, and Asian Americans saw 10.6 percent wage growth.

This strong wage growth lifted 4 million Americans out of poverty in 2018 and 2019.

This good news again demonstrates that the Trump-GOP policies of tax cuts and deregulation work.

While the Coronavirus pandemic interrupted the strong American economy, there are already signs that we are recovering quickly.

Over 10 million jobs were created in the last four months and analysts are predicting third quarter annualized GDP growth of 30 to 35 percent.

Moving forward, we need to ensure that pro-growth policies remain in law so that workers and businesses can continue recovering and thriving. While President Trump and Republicans are promising to push policies that allow the economy to regrow and have pledged to create another 10 million jobs, Democrats and Joe Biden are pushing for at least $4 trillion in tax increases.

Biden has repeatedly promised to repeal the Tax Cuts and Jobs Act which would raise taxes on businesses and Americans at every income level.

Photo Credit: Gage Skidmore

Posted by Isabelle Morales on Tuesday, September 15th, 2020, 4:10 PM PERMALINK Follow @IsabelleAliciaa

Presidential candidate Joe Biden has proposed raising the corporate tax rate from 21 percent to 28 percent. This would impose on Americans one of the highest corporate tax rates in the developed world, even higher than Communist China's 25 percent.

Biden doesn't want voters to know that the vast majority of corporations are local and regional small and mid-sized businesses vital to communities.

According to the Congressional Research Service, "The majority of both corporations and pass-throughs in 2011 had fewer than five employees (55% of C corporations and 64% of pass-throughs). Nearly 99% of both corporations and pass-throughs had fewer than 500 employees, the most common employment-based threshold used by the Small Business Administration (SBA)." For reference, Amazon has one million employees and Walmart has 2.2 million employees.

The most dire effects of a corporate tax hike would be felt by smaller businesses that Biden has claimed to be a champion for. It would also have severe consequences on workers' wages and the economy as a whole.

Kevin A. Hassett and Aparna Mathur released a study on the corporate tax rate in 2015. The study, "A spatial model of corporate tax incidence," was published in Applied Economics, Taylor & Francis Journals. Here are some of their findings on the impact of a corporate tax rate raise:

A 1% increase in corporate tax rates leads to a 0.5% decrease in wage rates.
Both domestic and neighbor country tax rates are important in explaining the formation of domestic capital-labor ratios. Higher tax rates in neighboring countries have a positive and significant effect on capital formation in the domestic country. When the corporate tax rate is increased, businesses move operations out of the country.
All measures of corporate taxation, such as the top national corporate tax rate, the effective average and the effective marginal tax rate negatively affect capital formation. Higher top rates discourage capital formation and capital expenditure.

In other words, a Biden corporate tax increase would lead to a decrease in wage rates, businesses moving operations out of the United States, an overall decrease in capital expenditure and capital formation (leading to less investment in things like machines, tools, factories, transport equipment, materials, electricity, etc.), a GDP reduction, and hundreds of thousands of job losses. The effects could be especially severe due to the vulnerable state the pandemic has put the country in.

Given the disproportionate amount of corporations that are relatively small, this could end up hurting key local employers.

Americans for Tax Reform has collected several testimonials from small and mid-sized corporations who benefited greatly from the Tax Cuts and Jobs Act.

For example, Conger Construction Group based in Lebanon, Ohio was able to double the amount of employees, offer bigger bonuses, give more paid time off, and provide additional healthcare benefits to workers:

“Justin Conger, owner and president of Conger Construction Group in Lebanon, Ohio, a C corporation, attributes the explosion of his business to the TCJA’s flat corporate tax rate of 21 percent, and he thinks his company’s success indicates the health of the overall economy.

“Construction is a lagging indicator of the economy,” he told members of the House Committee on Small Business on Wednesday. “If our clients or other businesses are not growing, expanding, or re-investing in their facilities, there is no need for commercial construction services. There is a lot of work to be completed before a project can start; from an owner obtaining financing, to architectural drawings being completed, to regulatory approval from local jurisdictions. Businesses all over Ohio are growing and expanding by utilizing the benefits of the TCJA and reinvesting additional generated capital into their businesses. In talking with past, future, and current clients, over 80 percent indicate the reason for their investment in construction services is due to the economy and current tax structure.”

“Conger said the number of employees at his company doubled in the last year and a half, and he’s been offering bigger bonuses, more paid time off and better healthcare benefits to workers because business has been so good. Conger said they’re also expanding office space due to the increased number of employees.”

It's important to remember that when leftists cite "evil corporations that must be held accountable," they prefer to create the illusion that their policy preferences would only hit large multinational corporations. In reality, they leave out the small and mid-sized businesses that happen to be classified as corporations, the employees of these corporations, and those corporations' consumers--all of which will be expected to foot the bill for leftist policies.

Photo Credit: Bill Smith

Posted by Tom Hebert on Tuesday, September 15th, 2020, 10:15 AM PERMALINK Follow @tomhebertdc

Senator Ted Cruz (R-Texas) has introduced “The Reinvigorating the Economy, Creating Opportunity for Every Vocation, Employer, Retiree, and Youth (RECOVERY) Act,” legislation designed to help the American economy continue recovering from the Coronavirus pandemic.

Here are several provisions that will help the economy recover and get Americans safely back to work.

Tax credits for employee testing and personal protective equipment

The RECOVERY Act provides a $150 tax credit to businesses that test their employees for Coronavirus on a biweekly basis for the remainder of 2020. This tax credit provides a direct incentive for employers to implement robust testing programs that keep their employees safe.

In addition, the Cruz bill establishes several tax credits designed to foster the conditions for businesses to safely reopen and operate. Employers can claim 50 percent of the cost of qualified expenses as a credit against applicable employment taxes on a quarterly basis.

Employers can claim a credit between $500 to $1,000 per employee depending on the size of their business. Qualified expenses include providing personal protective equipment for employees as well as reconfiguring and retrofitting workspaces.

Right to Test Act and FDA reciprocity

The RECOVERY Act includes the “Right to Test Act,” legislation that would allow states to approve and distribute Coronavirus tests as long as the state or federal government has declared a public health emergency. This would empower states to bypass FDA approval and drastically ramp up our testing capacity.

We already know what happens when Washington bureaucrats are in charge of developing and producing Coronavirus testing. The Center for Disease Control (CDC) took weeks to develop a Coronavirus test after the pandemic reached our borders, only to contaminate the first round of testing kits and completely botch the rollout.

The RECOVERY Act also establishes a reciprocal marketing approval process for COVID-19 drugs, biological products, and medical devices. This bill allows the sale of COVID-19 treatments or cures in the United States that have not yet been approved by the FDA if the product has already been approved in other countries.

Product sponsors must meet several criteria in order to sell in the U.S.

The FDA is notoriously slow at approving new drugs. On average, it takes 90.3 months for pharmaceuticals to go through the development and approval process, imposing immense R&D costs on manufacturers. In the middle of a global pandemic, we simply can’t afford to have the government slow things down more than they already do.

Liability protection for businesses

The RECOVERY Act establishes a liability shield for businesses operating during the Coronavirus pandemic.

This provision prevents businesses and/or individuals from being held liable in any Coronavirus exposure action unless the plaintiff can conclusively prove that:

The businesses or individual were not making “reasonable efforts in light of all the circumstances” to comply with all applicable government standards at the time of the alleged exposure.
The business or individual engaged in “gross negligence or willful misconduct” that caused the accidental exposure to COVID-19.
The accidental exposure caused the plaintiff personal injury.

As our economy begins to turn the corner on COVID-19, a liability protection for businesses that have acted in good faith to keep their customers and employees safe is absolutely crucial to getting Americans safely back to work. This provision prevents trial lawyers from cashing in on the crisis with predatory and abusive legislation.

Payroll tax holiday for employers and employees

The RECOVERY Act temporarily suspends the payroll tax for employers and employees from the date of enactment through the end of 2020. This payroll tax holiday will lower the cost to businesses for hiring new employees, accelerating the reopening process and continuing to get Americans safely back to work.

This legislation builds on President Trump’s payroll tax executive order which deferred Social Security payroll taxes from September 1 to December 31, 2020. This proposal makes the moratorium permanent so that taxpayers do not have to pay back payroll tax relief next year.

Ways and Means Republican Leader Kevin Brady (R-Texas) has introduced similar legislation in the House of Representatives.

Indexing capital gains to inflation

The RECOVERY Act ends the taxation of inflationary gains by indexing the calculation of capital gains taxes to inflation. Under current law, the capital gains tax fails to account for gains that are based on inflation. This unfairly exposes taxpayers to additional taxation.

For example, an investor makes a capital investment of $1,000 in 2000 and sells that investment for $2,000 in 2017 will be taxed for a $1,000 gain at a top capital gains tax rate of 23.8 percent. After adjusting for inflation, the “true gain” is much lower – just $579. (1,000 in 2000 - $1,421 in 2017).

Ending the inflation tax would also benefit millions of middle class households. ATR looked at Internal Revenue Service data from 2017 (the most recent available data) to determine what percentage of middle class households had a capital gains filing:

25,494,330 American households had a capital gains filing
13,730,710 (53%) made less than $100k
20,466,770 (80%) made less than $200k

The breakdown for all 50 states is here.

Full business expensing

The RECOVERY Act would implement permanent full business expensing for qualified property. This would allow businesses to deduct the cost of new investments (machinery, equipment, etc.) in the year they are made.

There are several benefits to this policy. First, it incentivizes new investment, leading to greater economic productivity, job growth and higher wages. Second, it simplifies the tax code by equalizing the tax treatment of new investments with other business expenses such as wages, rent, and healthcare costs.

In a post COVID-19 world, full expensing will help businesses make vital investments in the coming months and years as they seek to bring workers back, onshore manufacturing capabilities, and ramp up production.

Deregulation

The RECOVERY Act would enact the “REINS Act,” legislation that overhauls the regulatory process and strengthen Congressional oversight of agency rulemaking.

The legislation also includes a provision that permanently repeals regulations that have been waived or suspended during the Coronavirus pandemic and creates a regulatory review commission for Congress to reinstate rules if they are truly needed. If for some reason the regulation is truly needed in order for agencies to function properly, Congress can reinstate the rule after recommendation from the commissions.

Instead of using the crisis to consolidate more power in the federal government’s hands, President Trump and his administration have made deregulation a central part of the Coronavirus response. State and local governments have followed suit, leading to the suspension of over 800 rules and regulations nationwide.

ATR has kept a running list of these waived regulations, which you can view here.

529 expansion

The RECOVERY Act allows Americans to use 529s for K-12 expenses for students engaged in home learning including students enrolled in public, private, or religious school and students that are homeschooled through the end of 2022.

529s are tax advantaged savings accounts that allow parents to save and invest after-tax income for education costs. Any money earned through 529 investment is tax-free, making these plans a popular choice for parents looking to save for future education expenses.

Qualified expenses include curriculum materials, books, online educational materials, tutoring costs, fees for standardized testing, and expenses for students with disabilities.

The coronavirus pandemic has resulted in additional costs for American families stemming from the need to ensure schools openly safely and the implementation of online and distance learning. These new costs are exacerbated by the financial hardships that Americans are experiencing across the country due to a lost job, or reduction in work hours.

Expanding HSAs by enacting the Pandemic Healthcare Access Act

The RECOVERY Act also includes Senator Cruz’s “Pandemic Healthcare Access Act,” legislation that would allow all healthcare plans to use Health Savings Accounts throughout the Coronavirus pandemic.

Currently, there is a mandate that any American wanting to open or contribute to an HSA must be on a high-deductible health plan.

Senator Cruz’s legislation would pause this mandate in order to help mitigate the pandemic by Americans in Medicare, Affordable Care Act health plans, TRICARE, the VA, Indian Health Service and any employer plan to use HSAs. It will also help individuals pay for their deductible or any increased health care costs, allow HSA funds to pay for direct primary care, and allow telemedicine below the deductible.

Photo Credit: Gage Skidmore