Pennsylvania Examples of Tax Reform Good News

Posted by John Kartch on Monday, February 11th, 2019, 8:00 AM PERMALINK Follow @johnkartch

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

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

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

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

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

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

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

Ellwood Group (Ellwood, Pennsylvania) - Facility expansion:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The capital improvements include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Lowe's --13,000 employees at 84 stores and two distribution centers in Pennsylvania. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Twenty-eight locations in Pennsylvania) – Tax reform bonuses for employees.

Starbucks Coffee Company (357 locations in Pennsylvania) – $500 stock grants for all employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs, an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits, and parental leave.

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

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

McDonald’s (575+ locations in Pennsylvania) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:

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

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

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

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

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

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

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

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

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

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

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ATR Op-Ed in Townhall Urges California Pension Against Private Prison Divestment

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In his op-ed for Townhall, ATR’s Ryan Goff examined the result of politically motivated divestments from CalPERS’ portfolio, finding lost revenues exceeding $3.5 billion. As demonstrated in his piece, the state’s pension is only 70% funded and the prospect of further divestment away from private prisons — potentially renewed after the recent passage of Assembly Bill 32 banning state contracts with such prisons — only stands to exacerbate a critical problem. Read the full op-ed here.

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Pete Buttigieg grilled Elizabeth Warren for not answering the middle class tax question during the CNN/New York Times debate on Tuesday night.

Reporter: Mayor Buttigieg, you say Senator Warren has been "evasive" about how she's going to pay for Medicare for All, what's your response?"

Buttigieg: "We saw it tonight. A yes or no answer that didn't get a yes or no answer. Look, this is why people here in the Midwest are so frustrated with Washington in general and Capitol Hill in particular. Your signature, senator, is to have a plan for everything, except this. No plan has been laid out to explain how a multi trillion dollar hole in this Medicare for All plan that Senator Warren is putting forward is supposed to get filled in."

Warren is avoiding the reality that middle-class Americans would have to pay more in taxes -- as Bernie Sanders notes is necessary -- to fund “Medicare for All.”

"Yeah, [we'd have to] raise taxes on the middle class," Sanders told a CNN reporter after the July debate.

Yesterday, ATR released a compilation video of the 17 times that Warren has dodged the question.

Warren repeatedly dodged the question in September during an interview on The Late Show with Stephen Colbert. An exasperated Colbert tried to offer advice about the "taxes that perhaps you're not mentioning."

In July, Warren got into a heated exchange with MSNBC's Chris Matthews while refusing to answer Matthews' question on middle class tax hikes. She also dodged the question during the CNN and ABC debates.

In POLITICO Jeff Greenfield noted that Warren could be holding back an admission that Medicare for All will lead to higher taxes for the middle-class because she is worried about losing voters.

Greenfield wrote:

This leaves an obvious question that will follow her through the campaign: “Bernie Sanders is frank enough to acknowledge the obvious, and then explain it. Why won’t you?” The answer may be as simple as: If you say you will raise middle class taxes, an unmeasurable but likely significant number of voters simply will not bother to wait for the rest of your explanation.

As ATR noted earlier, Medicare for All would require anywhere from $32 trillion and $36 trillion in higher taxes over the course of the next decade.

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

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

Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question

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

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

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

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

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

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

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

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

VIDEO: 2020 Democrats Will Raise Your Taxes

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

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

Biden and Harris: Raise the Corporate Tax Rate

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

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

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

Julian Castro Caught Lying about GOP Tax Cuts

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

Kamala Harris: I Will Repeal “That Tax Bill”

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

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

Biden: I Will Raise Corporate Tax Rate to 28%

Kamala Harris Continues to Lie about Tax Cuts

Jay Inslee: “Repeal the Trump Tax Cuts”

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

VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts

Here’s what happens if Dems repeal tax cuts

VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA

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

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

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

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

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

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

Biden: Capital gains tax “much too low”

VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts

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

Joe Biden broke his middle class tax pledge

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

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

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

Posted by Adam Sabes on Tuesday, October 15th, 2019, 9:18 PM PERMALINK Follow @asabes10

Joe Biden said during the CNN/NYT Democratic debate that he'd double the capital gains tax rate to almost 40% from 20%.

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

In September, Biden said he'd double the capital gains rate to 40%.

Since the launch of his presidential campaign, Biden has repeatedly said the capital gains tax was “too low.” Biden’s comments and his long Senate voting record mean voters should expect him to push for capital gains tax hikes if elected.

During his time in the Senate, Biden consistently voted against tax cuts on capital gains.

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

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

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

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

Currently, long-term capital gains are taxed at zero percent, 15 percent, or 20 percent, depending on household income level the year the gain was realized. Households subject to Obamacare’s 3.8 percent Net Income Investment Tax pay a 23.8% rate.

In August Biden called for a capital gains tax rate increase to 39.6 percent. If Biden is elected and raises the rate to his most recently stated 40 percent, the top capital gains tax rate would end up at 43.8 percent.

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

Posted by Adam Sabes on Tuesday, October 15th, 2019, 7:47 PM PERMALINK Follow @asabes10

Elizabeth Warren dodged the middle class again during the CNN/New York Times Democratic debate, which is taking place in Otterbein, Ohio tonight.

Reporter: "Will you raise taxes on the middle class to pay for, it yes or no?"

Warren: Dodge

Reporter: "To be clear, Senator Sanders acknowledges he will raise taxes to pay for Medicare for all, will you acknowledge it too?"

Warren: Dodge

This is the 20th time that Warren has dodged the middle class tax question.

Warren is avoiding the reality that middle-class Americans would have to pay more in taxes -- as Bernie Sanders notes is necessary -- to fund “Medicare for All.”

"Yeah, [we'd have to] raise taxes on the middle class," Sanders told a CNN reporter after the July debate.

Yesterday, ATR released a compilation video of the 17 times that Warren has dodged the question.

In POLITICO Jeff Greenfield noted that Warren could be holding back an admission that Medicare for All will lead to higher taxes for the middle-class because she is worried about losing voters.

Greenfield wrote:

As ATR noted earlier, Medicare for All would require anywhere from $32 trillion and $36 trillion in higher taxes over the course of the next decade.

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

See more:

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

VIDEO: Warren Keeps Dodging the Middle Class Tax Question

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

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

Video: Warren Dodges Middle Class Tax Question Again

Biden Calls for Full Repeal of Trump Tax Cuts

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

Video: Media Fed Up with Elizabeth Warren Tax Dodge

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

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

Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question

Video: Warren Dodges MSNBC’s Middle Class Tax Questions

Elizabeth Warren is Still Dodging the Middle Class Tax Question

Video: 2020 Democrats Promise Higher Taxes

Biden Caught Lying about GOP Tax Cuts

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

Biden Endorses Carbon Tax

Kamala Harris Calls for Ban on Plastic Straws

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

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

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

Bill de Blasio Calls for Corporate Tax Rate Hike

Amy Klobuchar: Raise the Corporate Tax Rate to 25%

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

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

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

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

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

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

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

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

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

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

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

VIDEO: 2020 Democrats Will Raise Your Taxes

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

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

Biden and Harris: Raise the Corporate Tax Rate

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

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

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

Julian Castro Caught Lying about GOP Tax Cuts

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

Kamala Harris: I Will Repeal “That Tax Bill”

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

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

Biden: I Will Raise Corporate Tax Rate to 28%

Kamala Harris Continues to Lie about Tax Cuts

Jay Inslee: “Repeal the Trump Tax Cuts”

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

VIDEO: Ten Times Biden Threatened to Repeal Tax Cuts

Here’s what happens if Dems repeal tax cuts

VIDEO: 10 Times 2020 Democrats Have Threatened to Repeal TCJA

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

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

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

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

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

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

Biden: Capital gains tax “much too low”

VIDEO: Five Times Biden has Threatened to Repeal Tax Cuts

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

Joe Biden broke his middle class tax pledge

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

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

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

Posted by Alex Hendrie on Tuesday, October 15th, 2019, 1:00 PM PERMALINK

House Speaker Nancy Pelosi’s drug pricing legislation, HR 3, the “Lower Drug Costs Now Act,” imposes a new excise tax on manufacturers of up to 95 percent of sales for refusing government price setting.

This 95 percent tax is imposed on the sales of a drug. In addition, it can be applied retroactively, and is imposed in addition to income taxes.

As noted by The Congressional Budget Office, this tax is used by the government to enforce price controls on manufacturers:

"If manufacturers did not enter into negotiations or agree to prices by specified dates or if they did not meet other conditions, they would be subject to an excise tax of up to 95 percent of the sales of those drugs."

CBO offers no projection on the total revenue score of this tax. They assume that a manufacturer will either comply with government price setting (which will not trigger the tax) or leave the U.S. market entirely (resulting in a zero liability as the tax is on US sales):

“CBO and JCT anticipated that manufacturers would discontinue sales in the United States if the excise tax was levied on a drug, resulting in no revenue in that case.”

So, how does this tax work?

This tax is described in the legislation as a “Drug Manufacturer Excise Tax” under Section 102 of the legislation and is imposed “on the sale by the manufacturer, producer, or importer of any selected drug during a day.”
This tax applies to between 25 and 250 drugs as selected by the Secretary of the Department of Health and Human Services. Eligible drugs include the 125 most expensive “Covered Part D drugs” under Sec. 1860D–2(e) of the Social Security Act, the 125 most expensive drugs in the US, and approved insulin drugs.
The tax rate is set at 65 percent for the first 90 days of non-compliance, 75 percent for the 91st to 180th days of non-compliance, 85 percent for the next 181st and 270th days of non-compliance, and 95 percent beginning the 271st day of non-compliance.
The tax is triggered under the following “non-compliance periods”:
- If a manufacturer is out of compliance with the selected drug publication date – defined as April 15 of a plan year that begins 2 years prior to such year – and refuses to enter into negotiations;
- If a manufacturer does not agree to the government set price – described in the bill as the “maximum set price;”
- If a manufacturer fails to provide information on domestic and foreign sales of their drugs as requested by the HHS;
- If a manufacturer fails to provide a retroactive penalty to Treasury for having higher prices than in six countries (Australia, Canada, France, Germany, Japan, and the United Kingdom). Higher price is calculated as both net average price and volume weighted price;
- If the HHS Secretary asks for renegotiation of the price of a drug and the manufacturer does not comply;
The HHS Secretary is given the authority to apply the tax to sales outside of this period “in the case of a sale which was timed for the purpose of avoiding the tax.”
Unlike many other taxes in the code, this tax is not deductible when determining income taxes.
This tax is problematic for a number of reasons:
- It is imposed at such a high rate that it will result in income taxes above 100 percent of income even if applied to a portion of a business’s sales.
- It imposed retroactively, rather than prospectively. Taxes are typically imposed prospectively in order to promote consistency, certainty and fairness. All taxpayers deserve to make decisions based on a reasonable interpretation of the law with the expectation that the future changes to the law will not be applied looking backwards.
- It is imposed on sales, not income. Businesses are typically taxed on their income as it allows them to deduct expenses such as wages and other employee benefits, equipment, and machinery. A tax on sales is imposed irrespective of whether a business made any money.

Photo Credit: Brookings Institution - Flickr

Posted by Alex Hendrie on Tuesday, October 15th, 2019, 6:00 AM PERMALINK

ATR today released a coalition letter signed by 70 groups and activists in opposition to the Pelosi drug pricing proposal to create a 95 percent tax on pharmaceutical manufacturers.

As noted in the letter, this bill calls for a retroactive tax on sales that is imposed in addition to existing income taxes:

The tax is used to enforce price controls on medicines that will crush innovation and distort the existing supply chain as the signers note:

“The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.”

This proposal will create significant harm to American innovation to the detriment of jobs, wages, and patients, as the letter notes:

”[The Pelosi] proposal would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.

The full letter is found here and is below:

Dear Members of Congress:

We write in opposition to the prescription drug pricing bill offered by House Speaker Nancy Pelosi that would impose an excise tax of up to a 95 percent on hundreds of prescription medicines.

In addition to this new tax, the bill imposes new government price controls that would decimate innovation and distort supply, leading to the same lack of access to the newest and best drugs for patients in other countries that impose these price controls.

Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred. No deductions would be allowed, and it would be imposed on manufacturers in addition to federal and state income taxes they must pay.

The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.

If this tax hike plan were signed into law, it would cripple the ability of manufacturers to operate and develop new medicines.

It is clear that the Pelosi plan does not represent a good faith attempt to lower drug prices. Rather, it is a proposal that would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.

We urge you to oppose the Pelosi plan that would impose price controls and a 95 percent medicine tax on the companies that develop and produce these medicines.

Sincerely,

Grover Norquist
President, Americans For Tax Reform

James L. Martin
Founder/Chairman, 60 Plus Association

Saulius “Saul” Anuzis
President, 60 Plus Association

Marty Connors
Chair, Alabama Center Right Coalition

Bob Carlstrom
President, AMAC Action

Dick Patten
President, American Business Defense Council

Phil Kerpen
President, American Commitment

Daniel Schneider
Executive Director, American Conservative Union

Steve Pociask
President/CEO, The American Consumer Institute Center for Citizen Research

Lisa B. Nelson
CEO, American Legislative Exchange Council

Michael Bowman
Vice President of Policy, ALEC Action

Dee Stewart
President, Americans for a Balanced Budget

Tom Giovanetti
President, Americans for a Strong Economy

Norm Singleton
President, Campaign for Liberty

Ryan Ellis
President, Center for a Free Economy

Andrew F. Quinlan
President, Center for Freedom & Prosperity

Jeffrey Mazzella
President, Center for Individual Freedom

Ginevra Joyce-Myers
Executive Director, Center for Innovation and Free Enterprise

Peter J. Pitts
President, Center for Medicine in the Public Interest

Olivia Grady
Senior Fellow, Center for Worker Freedom

Chuck Muth
President, Citizen Outreach

David McIntosh
President, Club for Growth

Curt Levey
President, The Committee for Justice

Iain Murray
Vice President, Competitive Enterprise Institute

James Edwards
Executive Director, Conservatives for Property Rights

Matthew Kandrach
President, Consumer Action for a Strong Economy

Fred Cyrus Roeder
Managing Director, Consumer Choice Center

Tom Schatz
President, Council for Citizens Against Government Waste

Katie McAuliffe
Executive Director, Digital Liberty

Richard Watson
Co-Chair, Florida Center Right Coalition

Adam Brandon
President, Freedomworks

George Landrith
President, Frontiers of Freedom

Grace-Marie Turner
President, Galen Institute

Naomi Lopez
Director of Healthcare Policy, Goldwater Institute

The Honorable Frank Lasee
President, The Heartland Institute

Jessica Anderson
Vice President, Heritage Action for America

Rodolfo E. Milani
Trustee, Hispanic American Center for Economic Research
Founder, Miami Freedom Forum

Mario H. Lopez
President, Hispanic Leadership Fund

Carrie Lukas
President, Independent Women’s Forum

Heather R. Higgins
CEO, Independent Women’s Voice

Merrill Matthews
Resident Scholar, Institute for Policy Innovation

Chris Ingstad
President, Iowans for Tax Relief

Sal Nuzzo
Vice President of Policy, The James Madison Institute

The Honorable Paul R LePage
Governor of Maine 2011-2019

Seton Motley
President, Less Government

Doug McCullough
Director, Lone Star Policy Institute

Mary Adams
Chair, Maine Center Right Coalition

Matthew Gagnon
CEO, The Maine Heritage Policy Center

Victoria Bucklin
President, Maine State Chapter - Parents Involved in Education

Charles Sauer
President, Market Institute

Jameson Taylor, Ph.D.
Vice President for Policy, Mississippi Center for Public Policy

The Honorable Tim Jones
Leader, Missouri Center-Right Coalition

Brent Mead
CEO, Montana Policy Institute

Pete Sepp
President, National Taxpayers Union

The Honorable Bill O'Brien
The Honorable Stephen Stepanek
Co-chairs, New Hampshire Center Right Coalition

The Honorable Beth A. O’Connor
Maine House of Representatives

The Honorable Niraj J. Antani
Ohio State Representative

Douglas Kellogg
Executive Director, Ohioans for Tax Reform

Honorable Jeff Kropf
Executive Director, Oregon Capitol Watch Foundation

Daniel Erspamer
CEO, Pelican Institute for Public Policy

Lorenzo Montanari
Executive Director, Property Rights Alliance

Paul Gessing
President, Rio Grande Foundation

James L. Setterlund
Executive Director, Shareholder Advocacy Forum

Karen Kerrigan
President and CEO, Small Business Entrepreneurship Council

David Miller & Brian Shrive
Chairs, Southwest Ohio Center-right Coalition

Tim Andrews
Executive Director, Taxpayers Protection Alliance

Judson Phillips
President, Tea Party Nation

David Balat
Director, Right on Healthcare - Texas Public Policy Foundation

Sara Croom
President, Trade Alliance to Promote Prosperity

Kevin Fuller
Executive Director, Wyoming Liberty Group

Photo Credit: AFGE - Flickr

Posted by Bethany Patterson on Monday, October 14th, 2019, 3:04 PM PERMALINK

Americans for Tax Reform sent a letter to the Department of Justice in support of the T-Mobile/Sprint merger.

Companies should be able to merge or split without the government’s blessing, and as such, the T-Mobile/Sprint merger should be able to proceed without burdensome and unnecessary intervention.

The T-Mobile/Sprint merger will enhance competition, benefit consumers and create new jobs, while helping the United States maintain its position as the global leader in innovation and technology. Mergers are also pro-competitive, and as evidenced in the airline industry, lead to lower prices for consumers.

You can read the full letter below and linked to here.

October 10, 2019

Scott Scheele
Chief, Telecommunications and Broadband Section
Antitrust Division, U.S. Department of Justice
450 Fifth Street, N.W., Suite 700
Washington, D.C. 20530

Re: United States of America et al. v. Deutsche Telekom AG et al.; Case 1:19-cv-02232

Dear Mr. Scheele:

The T-Mobile–Sprint merger will facilitate healthy broadband competition, benefit Americans and help close the digital divide. Companies should be able to merge or split without government permission, and doom and gloom rhetoric should not stand in the way of innovation and job creation. For these reasons, I urge the Department of Justice to approve the merger.

By combining T-Mobile and Sprint into one company, the New T-Mobile will serve as a stronger competitor to the leading wireless companies. According to data from Strategy Analytics, the new company will have 126.2 million subscribers, allowing it to compete more fully with Verizon and AT&T, which each have approximately 150.5 and 141.6 million subscribers.[1]

Increased competition would incentivize these carriers to invest more in their networks, deploy 5G technology, develop new services and products, and offer competitive pricing.

The merger will lead to lower prices. T-Mobile and Sprint have a consistent historical record of providing innovative services at lower prices. The companies have made considerable voluntary commitments for their new network, including pledging to create a 5G network that covers 99 percent of Americans within six years[2] and to not raise prices for the next three years.[3]

Mergers are signs of healthy competition.[4] For example, within the airline industry, mergers have proven to be pro-competitive. Following recent airline mergers, ticket prices for Americans have decreased overall.[5] The New T-Mobile will have the same impact on the wireless industry.

Americans – particularly those in rural areas – stand to benefit from the combination in myriad ways, including shrinking the digital divide, rapid 5G deployment, and job creation across the nation. Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota have formally supported the consent decree. Leaders from Utah[6], Mississippi[7], the Navajo Nation[8], and other states have also shown their support.

T-Mobile and Sprint have committed to deploy a 5G network that will cover almost the entire country, with 97 percent of the United States population and 85 percent of rural America covered within three years.[9] These commitments will transform the lives of millions of Americans – many of whom reside in states that support the merger – who lack reliable internet access.

The T-Mobile–Sprint merger will also create jobs across the United States. The companies have pledged to create 12,400 jobs in small towns and rural America by 2021, create 7,500 customer care jobs by 2024, and open 600 new retail locations across the United States.[10]

This will bring life to many rural or underserved communities. As Navajo Nation President Jonathan Nez wrote in a letter to the Federal Communications Commission and Department of Justice, a post-merger T-Mobile will be “essential to [the Navajo Nation’s] economic recovery.”[11]

In short, the T-Mobile–Sprint merger will lead to increased broadband competition, greater connectivity, and economic growth.

I urge the Department of Justice to support free-market values and encourage you to approve the creation of the New T-Mobile. If you should have any questions or comments, please contact me or Katie McAuliffe by phone, 202-785-0266, or email, kmcauliffe@atr.org.

Onward,

Grover Norquist

________________________________

[1] Rani Molla, “A merged T-Mobile and Sprint will still be smaller than AT&T or Verizon,” Vox, April 30, 2018, https://www.vox.com/2018/4/30/17300652/tmobile-sprint-att-verizon-merger-wireless-subscriber-chart.

[2] “Re: Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer

Control of Licenses and Authorizations; WT Docket No. 18-197,” Federal Communications Commission, May 20, 2019, https://ecfsapi.fcc.gov/file/10520302189557/Redacted%20FCC%20Commitments%20Ex%20Parte%20(05.20.2019).pdf.

[3] John Legere, “New T-Mobile: Lower Prices and Better Service. Period.” NewTmobile.com, March 20, 2019, https://www.t-mobile.com/news/new-t-mobile-lower-prices-better-service.

[4] Patrick Hedger, “Will T-Mobile/Sprint Merger Increase Prices?”, Competitive Enterprise Institute, August 21, 2019, https://cei.org/blog/will-t-mobilesprint-merger-increase-prices.

[5] Dennis Carlton et. al, “Are legacy airline mergers pro- or anti-competitive? Evidence from recent U.S. airline mergers,” International Journal of Industrial Organization 63 (2019): 58-95.

[6] Utah Office of the Attorney General, “Utah Attorney General Reyes: The T-Mobile/Sprint Merger Will Benefit Rural Utah,” Utah Office of the Attorney General, August 9, 2019, https://attorneygeneral.utah.gov/t-mobile-sprint-merger-proceeding/.

[7] Mississippi Office of the Attorney General, “AG HOOD SETTLES CONCERNS ON T-MOBILE-SPRINT MERGER, INCREASES SERVICES AVAILABLE FOR MISSISSIPPIANS,” Mississippi Office of the Attorney General, October 9, 2019, https://www.ago.state.ms.us/releases/ag-hood-settles-concerns-on-t-mobile-sprint-merger-increases-services-available-for-mississippians/.

[8] Jonathan Nez to Federal Communications Commission and Department of Justice, August 28, 2019, https://ecfsapi.fcc.gov/file/10907790307322/Navajo%20Nation%20merger%20support.pdf.

[9] “Re: Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer

Control of Licenses and Authorizations; WT Docket No. 18-197,” May 20, 2019.

[10] T-Mobile and Sprint, “Creating Thousands of Jobs from Day One,” NewTMobile.com, https://newtmobile.com/our-plan-to-create-jobs/.

[11] Jonathan Nez to Federal Communications Commission and Department of Justice, August 28, 2019.

Photo Credit: Mike Mozart

Posted by Leigh Payne on Monday, October 14th, 2019, 1:59 PM PERMALINK

Americans for Tax Reform (ATR) congratulates IL-14 candidate Ted Gradel for signing the Taxpayer Protection Pledge, which is a written commitment to the people of Illinois to oppose higher income taxes.

Gradel joins Rep. Shimkus, Rep. Kinzinger, and Rep. LaHood in making this commitment to Illinois taxpayers.

“The American people are tired of the tax-and-spend policies coming from Washington and they are looking for solutions that create jobs, cut government spending, and grow the economy. Signing the Taxpayer Protection Pledge and holding the line on taxes is the first step in that process,” said Grover Norquist, President of Americans for Tax Reform.

Candidates running for public office like to say they will not raise taxes, but often turn their backs on the taxpayer once elected. The idea of the Taxpayer Protection Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing. It is offered to every candidate for state and federal office and to all incumbents. Nearly 1,400 elected officials have signed the Pledge.

“We are ecstatic about Mr. Gradel’s commitment to the taxpayers of Illinois. I challenge all candidates for Illinois’ 14th Congressional District to make the same commitment to taxpayers by signing the Taxpayer Protection Pledge today,” continued Norquist.

Photo Credit: Facebook

Posted by Adam Sabes on Monday, October 14th, 2019, 10:44 AM PERMALINK Follow @asabes10

Americans for Tax Reform today released a video compilation of the 17 times Elizabeth Warren has dodged the middle class tax question.

Warren has said on multiple occasions that she is “with Bernie” on Medicare for All, but refuses to answer if middle class taxes will go up under Medicare for All, as Bernie Sanders has openly admitted.

"Elizabeth Warren won’t admit the obvious. She will impose broad-based tax hikes on the middle class,” said Americans for Tax Reform president Grover Norquist.

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

See more:

VIDEO: Warren Keeps Dodging the Middle Class Tax Question

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

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

Video: Warren Dodges Middle Class Tax Question Again

Biden Calls for Full Repeal of Trump Tax Cuts

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

Video: Media Fed Up with Elizabeth Warren Tax Dodge

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

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

Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question

Video: Warren Dodges MSNBC’s Middle Class Tax Questions

Elizabeth Warren is Still Dodging the Middle Class Tax Question

Video: 2020 Democrats Promise Higher Taxes

Biden Caught Lying about GOP Tax Cuts

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

Biden Endorses Carbon Tax

Kamala Harris Calls for Ban on Plastic Straws

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

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

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

Bill de Blasio Calls for Corporate Tax Rate Hike

Amy Klobuchar: Raise the Corporate Tax Rate to 25%

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

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

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

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

Marianne Williamson Joins Dems Calling for TCJA Repeal

Kamala Admits Her Plan Would End Employer Insurance

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

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

Dem Socialized Healthcare Plan Will Lead to Middle Class Tax Hikes

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

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

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

VIDEO: 2020 Democrats Will Raise Your Taxes

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

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

Biden and Harris: Raise the Corporate Tax Rate

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

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

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

Julian Castro Caught Lying about GOP Tax Cuts

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

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Posted by Tom Hebert on Friday, October 11th, 2019, 4:47 PM PERMALINK Follow @tomhebertdc

President Donald Trump recently signed two executive orders (EO) that are an important step towards making government agencies transparent and accountable to the American taxpayer.

Trump’s “Improved Agency Guidance Documents” EO requires agencies to put guidance documents on an easily searchable website. Trump’s “Transparency and Fairness” EO prohibits federal agencies from enforcing rules that have not been made public in advance. Taken together, these actions are imperative in protecting Americans from bureaucratic abuse.

The Obama Administration was a nightmare for taxpayers. This maxim is especially true on the regulatory front, where federal agencies imposed thousands of costly mandates on taxpayers through a flurry of blogs, letters, brochures, and the like. These “guidance” documents are a way for federal agencies to bypass normal regulatory process, including public comments and cost-benefit analysis.

Bureaucratic abuse of American taxpayers via guidance documents was a commonplace activity in the Obama Administration. Here are four examples:

In 2011, Obama’s Department of Interior refused to renew a permit for Drakes Bay Oyster Company, a family owned-and-operated oyster farm that had operated in California for over 5 decades. The DOI used doctored data to deny renewal, arguing that courts didn’t have the jurisdiction to even hear the case. After three years of costly litigation, Obama’s DOI was unfortunately successful in its quest to shutter another small business.
In 2013, Wyoming taxpayer Andy Johnson built a bond for his daughters’ horses in his backyard, working with state engineers to ensure that the pond was environmentally friendly and ecologically beneficial. In 2014, Obama’s Environmental Protection Agency bureaucrats swarmed the Johnson family and threatened to hit them with a $20 million fine if they didn’t destroy their pond. The EPA only backed down after the left-wing New York Times published a cover story on how abusively the agency was treating the Johnson family.
In 2015, a Department of Labor blog post declared that many independent contractors should be classified as full-time employees. This new “guidance” blindsided thousands of small businesses all across the country, all of whom were denied the opportunity to offer any input on the guidance.
Finally, the Army Corps of Engineers prevented the growth of a small business in Alaska by deeming that permafrost was a “navigable water of the United States.” Richard Schok, hoping to expand his small, family-owned pipe fabrication business, purchased a plot of land with traditional wetlands in Fairbanks. The Corps cited an illegal guidance document known as the “Alaska Supplement” to argue that the wetlands AND permafrost were subject to the agency’s Clean Water Act jurisdiction. The courts have repeatedly upheld the government’s decision.

All three of these examples of regulatory abuse share a common thread — overzealous bureaucrats used off-the-books guidance documents to intimidate, threaten, and harass American small businesses. The American people should not be bound by murky “guidance documents” that they do not have the opportunity to influence via public comment, and agencies should not be allowed to use these documents to decimate American families and small businesses. Trump’s EO is an important step towards stopping the regulatory abuse of American taxpayers.

Photo Credit: Gage Skidmore