Supercut: Team Biden Vows to Impose Carbon Tax
Joe Biden and Kamala Harris have endorsed a carbon tax on the American people.
And as shown in the video below, they are surrounding themselves with others pushing a carbon tax, including climate czar John Kerry, OMB pick Neera Tanden, and Treasury Secretary Janet Yellen:
A carbon tax would impose burdens on households due to higher costs of cooling and heating, transportation, and groceries.
Even Hillary Clinton in 2016 decided to oppose a carbon tax after she learned the following from an internal Clinton report prepared by policy staff:
The Hillary memo states that a carbon tax would devastate low-income households: “As with the increase in energy costs, the increase in the cost of nonenergy goods and services would disproportionately impact low-income households.”
The Hillary memo states that a carbon tax would cause gas prices to increase 40 cents a gallon and residential electricity prices to increase 12% - 21%: “In our analysis, for example, a $42/ton GHG fee increases gasoline prices by roughly 40 cents per gallon on average between 2020 and 2030 and residential electricity prices by 2.6 cents per kWh, 12% and 21% above levels projected in the EIA’s 2014 Annual Energy Outlook respectively.
The Hillary memo states a carbon tax would cause household energy bills to go up significantly: “Average household energy costs would increase by roughly $480 per year, or 10% relative to the levels projected in EIA’s 2014 Outlook.”
The Hillary memo states that a carbon tax would increase the cost of household goods and services: “The cost of other household goods and services would increase as well as companies pass forward the higher energy costs paid to produce those goods and services on to consumers.”
(Source: MEMORANDUM FOR HILLARY RODHAM CLINTON -- Jan. 20, 2015)
Carbon taxes are highly unpopular with voters. In fact, carbon tax advocates can’t even get a carbon tax passed in a single blue state, as this timeline shows.
Carbon taxes also saddle state and local governments with huge costs. For example, a school district in Canada was forced to kick 400 kids off the school bus program in order to pay a $3.3 million carbon tax bill.
It's no wonder conservative groups wrote a letter to Congress Stating: "We oppose any carbon tax." The official Republican Party platform also rejects "any carbon tax."
Biden's carbon tax will also shatter his pledge to each and every American making less than $400,000 that he will not raise a single penny of any tax.
Gov. Kim Reynolds Wants to Deliver Tax Relief in 2021
Taxpayers across the country are very likely to face a number of federal tax increases in the coming year. At least for taxpayers in Iowa, they can rest assured that they will not be facing any tax hikes at the state-level.
In her Condition of the State Address, Gov. Kim Reynolds assured Iowans that they would not see any state tax increases this year. “And remember, that unlike many states we’re starting from a good financial position,” explained Gov. Reynolds. “We aren’t looking at tough budget cuts and we’re certainly not looking at raising taxes.”
And making that promise even better, Gov. Reynolds said she would like to build on her pro-taxpayer reputation by delivering more tax relief. In 2018, Gov. Reynolds signed the largest state tax cut in Iowa history into law. Once fully implemented, that pro-growth tax reform package will provide Iowans with $2.1 billion in tax relief.
That tax law reduced the rate of every single one of Iowa's nine individual income tax brackets. This has been a huge win for individual taxpayers and families, as it allowed them to keep more of their hard-earned paychecks. It was also a big victory for small businesses, which file their taxes under the individual code, as it allowed them to invest more resources in jobs and higher wages.
In 2023, that law could do even more to help taxpayers and make Iowa a more attractive place to live, invest, and do business. Once fully implemented, it will reduce the number of individual income tax brackets from nine to four and lower the top rate from 8.53 percent to 6.5 percent. The catch here is that this component of the bill is subject to certain revenue triggers being met. While official projections have Iowa coming very close to reaching those triggers, if they fall even the slightest bit short, the tax cuts will be delayed.
Gov. Reynolds would like to guarantee that relief is provided and maybe go even further. “If anything, we need to continue the conversation about cutting taxes, and we can start by getting rid of the unnecessary triggers that were put in place in 2018,” said Gov. Reynolds. “Let’s make Iowa more competitive and guarantee our taxpayers that they can keep more of their hard-earned money.”
At present, Iowa’s top marginal individual income tax rate – the part of the income tax that is most commonly used to make decisions about investment – is in the top 10 highest in the country. To ensure that Iowa definitely becomes more competitive, Gov. Reynolds, at minimum, would like to remove the triggers to make sure the promised cuts take effect.
Even better news for Iowans is that newly elected Senate President Jake Chapman has always viewed tax relief as a top priority. In a recent interview with The Gazette, President Chapman explained:
“Now more than ever is when we need to be implementing tax cuts. We need to stir our economy as never before, and one of the ways we do that is through tax cuts. I’m talking about individual tax cuts, I’m talking about people who are paying capital gains, who are wanting to bring their business back or start a business. This is the time to really focus on how we can begin to implement tax cuts that will lead to the total elimination of income tax. My hope is that we do focus on how we can reduce taxes and eventually eliminate the income tax.”
Reducing and phasing out the state income tax would be a huge win for all Iowans. Putting the income tax on the path to zero would allow Iowa to compete with more states for businesses looking to expand, investors looking for growing economies, and families looking for better opportunities – all of which would bring new jobs and higher wages to the state.
Photo Credit: Iowa Public Radio Images
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Pete Buttigieg Puts Gas Tax Hike “On the Table” During Confirmation Hearing
Only two days in office and the Biden administration is already considering breaking President Biden’s campaign promise that “anyone making less than $400,000 a year won’t pay a penny more” in taxes.
During his Senate confirmation hearing for Transportation Secretary, Former Mayor Pete Buttigieg told members of the Commerce, Science and Transportation Committee that a gas tax increase is “on the table” as a means to pay for infrastructure spending.
When asked directly by Sen. Rick Scott (R-FL) if he supported increasing the gas tax and by what amount, Buttigieg replied, "I think all options need to be on the table, as you know, the gas tax hasn't been increased since 1993 and it's never been pegged to inflation."
“There are several different models, in the short to medium term that could include revisiting the gas tax, adjusting it, and or connecting it to inflation," Buttigieg continued when pressed by Sen. Scott to provide more detail.
Support for a federal gas tax increase would be a clear violation of President Biden’s pledge to not raise taxes on any individual earning less than $400,000 per year. According to the Congressional Budget Office, raising the tax rate on gasoline would “impose a proportionally larger burden, as a share of income, on middle- and lower-income households,” while also imposing “a disproportionate burden on rural households.”
Buttigieg’s consideration of a gas tax increase also directly contradicts other statements issued by President Biden on the campaign trail.
“I’ve tried this before, we’re not going to be able to raise the gas tax,” President Biden said at an infrastructure forum in Las Vegas in February. “I don’t think we’re going to be able to raise the gas tax from what it is now to what it would be had it been raised for inflation,” Biden continued.
During today’s hearing, Buttigieg also raised the possibility of creating a new “vehicle miles traveled” (VMT) tax that would charge drivers based on a per-mile tax but cautioned that the technology might not be ready to support implementing this policy while also raising privacy concerns.
Photo Credit: Wikimedia Commons
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Massachusetts' Flavor Ban Disaster
When Massachusetts implemented a ban on all flavored tobacco products, including menthol cigarettes and flavored smokeless tobacco, in the middle of 2020, experts predicted it would have no impact upon smoking rates despite what proponents of the ban claimed. Critics of the ban predicted that while failing to curb smoking, the ban would impose serious cost to the Commonwealth in the form of plummeting tax revenue caused by cross-border purchases and the creation of a booming black market.
With six months of data now available, these predictions have proven accurate. As a direct result of the ban, the Bay State is losing more than $10 million a month in tax revenue to neighboring states and criminal black-market syndicates, while smoking rates remain unchanged.
The data is undisputed. Since the flavored tobacco products ban took effect, Massachusetts retailers have sold 17.7 million fewer cigarette packets compared to the same six months in the prior year, while neighboring Rhode Island and New Hampshire have combined to sell 18.9 million more as Massachusetts residents stock up across state lines. The loss to the state, already in the midst of a fiscal crisis brought on by the Covid-19 pandemic, has thus far been a staggering $73,008,000. Given fewer than $5 million of the over $500 million the state collects in tobacco excise is spent on smoking cessation programs, the remainder allocated to the general fund, this shortfall will likely lead to further tax increases, hurting struggling families and businesses at the time the can afford it least.
While the states of Rhode Island and New Hampshire have been some of the biggest beneficiaries of Massachusetts’ ban, collecting close to $50 million in additional revenue, criminal syndicates have also benefited. Even prior to the ban, illicit tobacco accounted for over 20% of tobacco consumed in Massachusetts. Contrary to popular belief that tobacco smuggling a victimless crime consisting of someone purchasing a few extra cartons across state lines, in reality most tobacco smuggling is run by multi-million dollar organized crime syndicates. These networks, who also engage in human trafficking & money laundering, have also been used to fund terrorist and the US State Department has explicitly called tobacco smuggling a “threat to national security”.
The Massachusetts Department of Revenue is not the only loser, however. Thousands of Bay State small business owners operating convenience stores and gas stations, many of whom are already struggling amid the pandemic-driven downturn, are losing even further as they are unable to sell products their competitors across the state line are able to offer, or that can be found from an illegal seller.
In addition to lost revenue and the financing of criminal activities, another adverse effect of these bans is the disproportionate harm it inflicts upon minority communities. Approximately 80% of blacks and 35% of Latinos who choose to smoke prefer menthol cigarettes, and black adults are 60% of cigarillo and non-premium cigars smokers, with these products often flavored. For this reason, civil liberty organizations such as the ACLU and the Law Enforcement Action Partnership oppose flavor bans as they “disproportionately impact people and communities of color.”
With flavor bans failing to reduce smoking in Massachusetts (as they have failed in multiple other jurisdictions), it is time for regulators to look for a better way to reduce smoking rates. Fortunately, one exists. Reduced risk tobacco alternatives, such as personal vaporisers, have been overwhelmingly proven to be 95% safer than combustible cigarettes, and at least twice as effective as more traditional nicotine replacement therapies, leading to the sharpest declines in both adult and youth smoking on record. For this reason, they are and endorsed by 32 of the world’s leading medical bodies and promoted as a quit smoking aid by government agencies such as Public Health England. Extrapolating from a large scale analysis by the US’s leading cancer researches and co-ordinated by Georgetown University Medical Centre, if a majority of Massachusetts smokers made the switch to vaping, close to 150,000 lives would be saved; nationally the number would be 6.6 million
The ban on flavored tobacco in Massachusetts has done nothing to reduce smoking rates or youth uptake, but has led to a sharp plunge in tax collections and done unnecessary harm to small businesses. Massachusetts is a cautionary tale for other states, demonstrating the unintended negative consequences that ill thought out bans result in.
Photo Credit: Lindsay Fox
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Five Reasons to Oppose Biden’s Plan to Raise the Corporate Tax Rate
President Joe Biden has proposed raising the corporate tax rate from 21 percent to 28 percent as part of his plan to raise taxes by as much as $4 trillion over the next decade.
Any effort to raise taxes on businesses should be rejected. It will prolong the economic downturn and harm workers and businesses. It will make America a less competitive place to do business and could see a return of corporate inversions and an increase in foreign acquisitions. It will also harm Americans that have their savings in a 401(k) or IRA or have begun investing in the stock market.
Here are five reasons to reject efforts to raise the corporate tax hikes:
1. Raising the corporate rate will prolong the economic downturn
Now is the worst time to raise taxes on businesses because the economy is weak and millions of Americans are out of work. Raising the corporate rate will make it harder for businesses to hire new Americans, prolonging the economic downturn.
Because of government mandated lockdowns and restrictions, 140,000 jobs were lost in December according to the Bureau of Labor Statistics. While 11 million jobs have been recovered since the peak of the pandemic, this represents just half of the total jobs lost.
Make no mistake - there is significant work to be done in order for the economy to fully recover. In the meantime, businesses and workers remain vulnerable. Rather than pushing tax increases, we should be pushing policies that encourage investment and job creation.
Even former President Barack Obama has warned against tax increases during an economic downturn. As Obama noted:
"The last thing you want to do is raise taxes in the middle of a recession because that would just suck up, take more demand out of the economy and put businesses in a further hole."
2. Raising the corporate rate will harm workers and families
Biden’s plan to raise the corporate rate will harm workers and families, with the costs of the tax passed down to them.
Numerous studies have found that between 50 percent and 70 percent of the corporate tax is borne by workers with the remaining being borne by shareholders. This means that increasing the corporate tax rate harms workers and reducing the tax benefits workers.
Not only is the correlation between worker wages and business taxes seen in economic studies, it has been seen in the strong economic conditions following the Tax Cuts and Jobs Act (TCJA), which reduced the corporate tax rate from 35 percent to 21 percent.
After the TCJA was signed into law, American workers saw unprecedented prosperity.
The unemployment rate hit 3.5 percent in 2019, a 50-year low.
Median household income increased by $4,440 or 6.8 percent – the largest one-year wage growth in history. Average hourly earnings grew by 3 percent or more for 20 consecutive months between 2018 and the start of 2020, according to BLS.
The bottom 25 percent of wage earners saw 4 percent or greater annual monthly wage growth for 26 consecutive months under President Trump, according to the Atlanta Fed. This wage growth was greater than the top 25 percent of wage earners in every month.
Under this economy, there were more job openings than job seekers for 24 consecutive months. In March 2018, the ratio of unemployed persons to job openings dropped to 0.9. This ratio remained below 1.0 until the pandemic when it began to rise in March 2020.
Unfortunately, the COVID-19 pandemic put an end to this strong economy. However, the benefits in the years and months after the TCJA was passed are clear.
3. Raising the corporate rate will make the U.S. less competitive.
Biden’s plan to raise the corporate rate to 28 percent, which would be about 32 percent after state taxes, would give the U.S. one of the highest rates in the developed world.
The U.S. rate would be higher than key competitors such as the United Kingdom (19 percent), China (25 percent), Canada (26.5 percent), Ireland (12.5 percent), Germany (29.9 percent) and Japan (29.74 percent), according to data compiled by the Organisation for Economic Co-operation and Development (OECD).
Many countries also have lower rates for certain industries to encourage innovation and investment. For instance, China has a 15% rate for industries including high tech enterprises, while the United Kingdom has a 10 percent “patent box” rate for businesses that depend on patented inventions and innovations.
The U.S. is already lagging behind when it comes to promoting innovation. According to a Manufacturing Leadership Council study, the U.S. ranks 26thin research and development tax incentives when ranking the 36 developed countries in the OECD.
4. Raising the Corporate rate could lead to a return of foreign inversions and acquisitions
If Biden raises the corporate rate, it could cause a return of corporate inversions and see a surge in foreign acquisitions of U.S. businesses.
Concern over inversions grew during Obama’s second term because a number of large American businesses with combined assets of $319 billion announced plans to invert in 2014, according to the Congressional Budget Office.
Inversions occur when a U.S. business merges with, or acquires, a foreign business with the intent of incorporating the new, combined entity overseas. This happened because the U.S. tax code was uncompetitive and businesses were moving to countries with more competitive tax codes.
The inversion problem was solved when the TCJA was signed into law. In fact, after the TCJA, companies began to come back to America. The inversion problem was just one indicator of American uncompetitiveness. Prior to the TCJA, American businesses were vulnerable to foreign acquisitions.
According to a study released by EY, American companies also suffered a net loss of almost $510 billion in assets between 2004 and 2017. This was because the high U.S. rate and worldwide tax system meant non-U.S. companies could outbid U.S. companies.
If the corporate rate was lower between 2004 and 2017, the study estimates that U.S. companies would have acquired a net of $1.2 trillion worth of assets, meaning that more than $1.7 trillion in assets were lost because of the uncompetitive U.S. rate.
5. Raising the corporate rate will harm Americans with a 401(k) or invested in the stock market
Biden’s plan to raise the corporate rate will also harm the life savings of millions of Americans that are invested in the stock market or that are saving for retirement through a 401(k) or IRA. Raising the corporate tax rate will reduce the value of stocks, reducing the value of these life savings.
This has the potential to impact Americans across the country. According to recent data, 80 to 100 million Americans have a 401(k), while 46.4 million households have an individual retirement account.
A majority of the assets in these accounts are invested in stocks. 401(k)s hold $6.2 trillion in assets and almost 70 percent of these assets (or $4.3T) are in stocks.
Similarly, 53 percent of the more than $11 trillion in IRA savings are held directly in stocks while another 18 percent of savings are invested in funds that comprise stocks.
This is not the only source of life savings that could be reduced by Biden’s tax increase. 19 million Americans rely on public pension funds for their retirement and roughly half of the $4 trillion in savings is invested in stocks.
This could also impact younger Americans that have begun investing in the stock market to increase their savings. Half of Gen-Zers and Millennials have begun trading in stocks as a way to increase their life savings, according to recent reports. Across the entire country, as many as 53 percent of American households’ own stock, according to the Federal Reserve. In addition, over 70 percent of households in the “upper-middle income group” owned stocks and the median value of these portfolios was over $40,000.
Photo Credit: Matt Bargar
Fond Farewell to FCC Chairman Ajit Pai
Americans for Tax Reform would like to express our gratitude for the important work that Federal Communications Commission Chairman Ajit Pai accomplished throughout his tenure.
The following statement can be attributed to Grover Norquist, President of Americans for Tax Reform:
"During the Trump Administration, Ajit Pai’s nomination as Chairman of the FCC was second in importance only to Neil Gorsuch. Chairman Pai stood up to doomsayers prophesizing the destruction of the internet if the government didn't exert more control over the internet's infrastructure. Guess what — It didn’t happen. Even under the added stress of the pandemic, the internet not only worked, it thrived. Congratulations to Chairman Pai's many successes at the helm of the Commission, and I wish him well in his future endeavors."
The following statement can be attributed to Katie McAuliffe, Executive Director of Digital Liberty and Americans for Tax Reform’s Director of Federal Policy:
"Chairman Pai led the most transparent and productive FCC in years. No longer are DC insiders the only ones to know beforehand what the Commission is doing. Under his direction, proposed orders and rulemakings had to be publicly available three weeks in-advance of an FCC vote. Before, items were not public until after the Commission voted on them. For daring to remove excessive regulations on the internet, Chairman Pai faced harassment and threats of violence against him and his family. But it was those actions nonetheless that kept the internet working, while connecting more Americans than ever to broadband, throughout this pandemic. I thank him for his service and look forward to what the future has in store for such a dedicated public servant."
The Pai FCC has a long list of accomplishments ranging from internal agency reforms to deregulatory policies that maximized benefits to all Americans.
During the Pai FCC, the Commission doubled its productivity from previous ones. The average Commission meeting under Chairman Pai voted on 6 items while previous ones ranged 2 – 4. The Pai FCC did this while reaching record levels of bipartisanship as well.
Chairman Pai remarked that when he was just a staffer at the FCC, he was told dozens of times that agenda items could not be made public before Commission meetings. As Chairman, he changed that policy in the first two weeks to increase transparency. The result was that the American people now have the same access to agency plans that only lobbyists or DC insiders had before.
Chairman Pai also ensured the FCC would have access to sound economic analysis for agency decision making. During his tenure he advocated for the creation of the Office of Economics and Analytics at the FCC. This new office consolidated economists across the agency which increased independence and added to the professionalism of their work.
In 2018, the Pai FCC passed the Restoring Internet Freedom (RIF) Order, which repealed short-lived Obama-era regulations on internet-service providers. Activists on the left scare mongered that this would bring “an end to the internet” or that the internet would populate one word at a time. These claims were absolutely baseless. In actuality, in the two after passage of RIF, we saw increases in broadband investment, increases in network speeds, and 10x times the number of cell sites deployed than in previous years. This occurred despite the COVID-19 pandemic where internet traffic dramatically increased. In places like Europe where they held onto their utility-style regulation, they saw decreases in speeds, and had to take preventative measures to prevent networks collapsing.
The Pai FCC also took unprecedented steps to repurpose spectrum. Spectrum is a finite resource that is necessary for wireless communications. Repurposing spectrum is a must be done, but it can be immensely difficult. To quote the Chairman, “there is no more greenfield spectrum available. That means there are no easy solutions. Whenever you explore new uses for spectrum, you’re going to draw battles with incumbents or others worried about harmful interference.” In 2018 Chairman Pai promised to make more spectrum available for 5G over the next 3 years than what was already available. And he did it. The Pai FCC opened up almost 5,000 megahertz of spectrum for use by 5G technologies.
Americans now rely on the internet more than ever to go to work, go to school, and receive healthcare. The Pai FCC laid the groundwork to reverse-auction billions in funding to develop rural broadband and telehealth programs; ensuring that American tax dollars will be put to their best use in bridging the digital divide.
These accomplishments are just a handful of many that will improve the lives of American citizens and businesses in ways obvious, and no-so-obvious ways for a generation to come. We wish the Chairman the very best of luck on what the future has in store for him.
Photo Credit: Gage Skidmore
Despite Yellen Claim, Biden and Harris have called for Elimination of TCJA at Least 22 Times
Janet Yellen, Joe Biden's nominee for Treasury Secretary, said during today's Senate Finance Committee confirmation hearing that Biden has "been very clear that he does not support a complete repeal of the 2017 tax law."
However, Joe Biden and Kamala Harris have said at least 22 times that they want to repeal the entire Tax Cuts and Jobs Act.
WATCH:
Biden Treasury Nominee Janet Yellen Seeks Large Tax Increases
Members of the Senate Finance Committee are considering the nomination of Janet Yellen to be Secretary of the Treasury.
Yellen supports several tax increases including repeal of the Tax Cuts and Jobs Act (TCJA), which reduced taxes for middle class families and small businesses. Yellen also supports a $2 trillion energy tax that would increase the cost of electricity and consumer goods and services for Americans across the country.
Yellen opposes the Tax Cuts & Jobs Act, as noted in an April 2018 op-ed where she argued that there was no need for a tax cut because, “the economy was already at or close to full employment and did not need a boost.”
Americans who found jobs after the enactment of the tax cuts would disagree. After the tax cuts were signed into law in December 2017, the unemployment rate dropped from 4.1% down to 3.5% just before the pandemic hit. African American unemployment dropped from 6.7% to 5.8% and Hispanic unemployment dropped from 5.0% to 4.4%. Over 5.1 million jobs were created from December 2017 to February 2020. Median household income increased by $4,440 or 6.8% in 2019 -- the largest one-year wage growth in history.
It is important to note that this economic prosperity came despite significant headwinds to the economy. In fact, Moody’s Analytics Chief Economist Mark Zandi estimated that tariffs imposed by President Trump cost 450,000 jobs per year they were in effect.
Repealing the Tax Cuts and Jobs Act will repeal the 20 percent small business deduction and raise the corporate rate, which will prolong the economic downturn and hider growth and the creation of new jobs.
It will also directly increase taxes on American families.
American middle-income families saw significant tax reduction because of the TCJA. Specifically, taxpayers with AGI of between $50,000 and $100,000 saw their tax liability drop by an average of 13 percent. This is more than twice as much as taxpayers with AGI of $1 million or more, who saw their average tax liability drop by 5.8 percent.
In addition, repeal of the tax cuts means the individual mandate tax will come back into force, hitting five million households with a tax of between $695 and $2,085. 75 percent of these households make less than $50,000 per year.
Yellen also supports an Energy Tax of at least $40 per ton of Carbon. Yellen is a founding member of the Climate Leadership Council (CLC), an “international policy institute” lobbying Congress to pass this carbon tax, which would increase every year at 5% above inflation.” Yellen is also the author of a recent study commissioned by CLC, Exceeding Paris, that recommends a $43/ton carbon tax.
There is bipartisan recognition that an energy tax would harm low-income households and increase the cost of electricity and household goods. In 2016, Hillary Clinton decided to oppose a carbon tax after she learned the following from an internal Clinton report prepared by policy staff:
- The Hillary memo states that a carbon tax would devastate low-income households: “As with the increase in energy costs, the increase in the cost of nonenergy goods and services would disproportionately impact low-income households.”
- The Hillary memo states that a carbon tax would cause gas prices to increase 40 cents a gallon and residential electricity prices to increase 12% - 21%: “In our analysis, for example, a $42/ton GHG fee increases gasoline prices by roughly 40 cents per gallon on average between 2020 and 2030 and residential electricity prices by 2.6 cents per kWh, 12% and 21% above levels projected in the EIA’s 2014 Annual Energy Outlook respectively.
- The Hillary memo states a carbon tax would cause household energy bills to go up significantly: “Average household energy costs would increase by roughly $480 per year, or 10% relative to the levels projected in EIA’s 2014 Outlook.”
- The Hillary memo states that a carbon tax would increase the cost of household goods and services: “The cost of other household goods and services would increase as well as companies pass forward the higher energy costs paid to produce those goods and services on to consumers.”
Photo Credit: Gerald R. Ford School of Public Policy University of Michigan
Biden Pick Marty Walsh is Big Labor’s Top Choice To Lead DOL
President-elect Joe Biden has chosen Boston Mayor Marty Walsh to run the Department of Labor (DOL). As the first union member set to lead DOL in nearly 50 years, Walsh is the latest confirmation that the Biden administration will be a wholly-owned subsidiary of union bosses and Big Labor.
Throughout his campaign, Biden pledged to deliver for Big Labor’s anti-freelancer and anti-worker freedom priorities. On the day before the presidential election, Biden promised a group of union workers in Pennsylvania that he’d be the “most pro-union president you’ve ever seen.”
Biden’s pick has been praised by AFL-CIO union boss Richard Trumka, who said that Walsh “...will be an exceptional labor secretary for the same reason he was an outstanding mayor: he carried the tools. As a longtime union member, Walsh knows that collective bargaining is essential...”
Biden has even promised to bring Trumka with him in the Oval Office, saying “if I’m in the Oval Office, guess who’s going to be there with me? Unions, labor, you. Rich, the bad news for you is there’s no getting away from me...because I’ll be coming for you.”
Installing one of Trumka’s top allies at DOL to execute Big Labor’s agenda would be the perfect way to achieve Biden’s promise.
Biden has repeatedly endorsed the job-killing PRO Act, which would ban Right to Work Laws that protect 166 million workers in 27 states, more than half the U.S. population. Right to Work laws allow workers the freedom of employment without forced membership in a union or forced payment to a union boss.
Biden has explicitly called for the end of Right to Work, saying: "We should change the federal law [so] that there is no Right to Work allowed anywhere in the country. For real. Not a joke. Not a joke."
Biden’s real motivation for invalidating Right to Work laws is simple enough – Big Labor is one of Biden’s biggest backers, and unions have collectively spent hundreds of millions of dollars to get Biden elected. Forcing American workers to pay union dues that almost uniformly support Democrat candidates, whether they want to or not, is a clear return on that investment.
The PRO Act would also dismantle the gig economy by implementing California’s “ABC” test to determine whether or not a worker is an employee or an independent contractor. The ABC test, codified under California’s disastrous AB5 law, makes it harder for employers to hire independent contractors but easier for unions to unionize workers.
Thanks to AB5, countless freelancers and independent contractors have fled California to participate in the gig economy in other states.
ATR has collected 655 testimonials from Californians that detail how AB5 has pummeled freelancers and independent contractors. For example:
"I lost the career and relationship I was building with a content writing company." [Link]
"AB5 is why I had to pack my very ill husband with stage 4 cancer and autistic son and leave the state. There is no way I can take care of our family and work a 'traditional' type job." [Link]
"I'm a certified court interpreter. I've been very happily freelancing for 15 years. I can choose which agencies to work with, and work as much or as little as I want to spend time with my 3-year-old. AB5 is destroying my wonderful work/life combo." [Link]
If the PRO Act is implemented, expect these sad stories to come from all fifty states.
While Walsh may not yet be a household name, the radical agenda he and Biden supports has been crushing worker freedom and independent contractors for years. If Walsh is confirmed, workers will be once again forced to join unions and pay union dues whether they want to or not, and freelancers all across the country will see their livelihoods destroyed with the stroke of a pen.
The Senate should reject Walsh’s nomination.
Photo Credit: Matt Bargar
To Sell Tax Increases, Team Biden Tries to Rewrite Pre-Pandemic Economic History
As President-elect Joe Biden prepares to impose tax increases on the American people, his top economic adviser Brian Deese is attempting to rewrite pre-pandemic economic history.
Deese, tapped by Biden to serve as director of the National Economic Council, appeared for an interview on Fox News Sunday hosted by Chris Wallace. When Wallace questioned the wisdom of raising taxes, Deese said the pre-Covid economy wasn't working for most Americans:
WALLACE: "Unemployment was 3.5% before Covid hit back in February. Is raising taxes and increasing regulations -- both of which President-elect Biden has talked about -- is that really the answer to get back to what was a pretty strong economy before the pandemic?"
DEESE: "I think if you ask most American people, was that an economy that was working for them? The answer would be no."
Nice try, Mr. Deese.
Before the pandemic:
- 3.5% unemplyment, a 50-year low.
- In 2019, real median household income increased by $4,000 or nearly 7%. This wage growth exceeded the gains made throughout the eight years of the Obama-Biden administration, where wages increased by just $3,000 or 5%.
- African American and Hispanic Americans saw their median income hit record levels.
- The poverty rate declined to 10.5%, the lowest rate in decades.
- The bottom 25% of wage earners experienced wage growth faster than the top 25% of wage earners.
For more information about Biden's proposed tax increases, visit ATR.org/HighTaxJoe
How the Republican Tax Cuts Are Helping Wisconsin
Wisconsin is benefiting greatly from the Tax Cuts & Jobs Act enacted by Republicans in 2017:
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:
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.
- Increased Tuition Investment:
“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
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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