West Virginia Examples of Tax Reform Good News
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 West Virginia. (Additions to this list can be sent to jkartch@atr.org)
Warwood Tool (Wheeling, West Virginia) – Creating a new line of products:
The tax cuts have given the company and its customers enough optimism for the future that Warwood Tool is developing a new line of products. – May 3, 2018, The Intelligencer article excerpt
West Virginia American Water (Charleston, West Virginia) – The utility will pass tax savings on to customers:
West Virginia American Water Company announced a settlement plan last week which — if approved by the PSC — would result in an average savings of $3.77 a month for water and sewer customers in the state.
Panhandle Cleaning and Restoration (Wheeling, West Virginia) – Purchasing new trucks and equipment:
While Panhandle is often called upon for clean-up services after national disasters, Contraguerro told Jenkins the company relies on its day-to-day operations. Their employees, trucks and equipment are called to local homes and businesses each day following water-line breaks or other incidents, and Panhandle doesn’t wait for hurricanes to hit, he said.
The company plans to invest the money it receives from the tax cuts into more trucks and equipment.
“We will be reinvesting in the business,” he told Jenkins. “There is a huge benefit to reinvesting.” -- May 3, 2018, The Intelligencer article excerpt
Potomac Edison (Martinsburg, West Virginia) - The utility is passing on tax savings to customers:
‘More than 85,000 Potomac Edison customers in the Eastern Panhandle should see lower bills in the coming weeks thanks to federal tax reforms adopted in December.
The West Virginia Public Service Commission announced Friday that it approved rate reduction settlements for utility companies totaling almost $85 million annually, starting next month.
"Bottom line: starting Sept. 1, the tax reduction will lower bills for typical ... residential customers by nearly $2 per month," FirstEnergy spokesman Todd Meyers wrote in an email on Friday. FirstEnergy is the parent company of Potomac Edison.
"That means our average residential customer using 1,000 kilowatt-hours per month will see their monthly (bill) fall to $108.25 from $110.22," - August 24, 2018, Herald Mail Media
Eagle Manufacturing (Wellsburg, West Virginia) – Creating new jobs and purchasing new equipment:
The company traditionally has sought to buy used equipment at low prices when replacement of machinery was necessary, according to Trimmer.
“Because of that tax break, we can invest and buy our next machines,” he said. “My department is now looking to buy a $2 million machine, rather than a 1990 classic. It will pay for itself in a short manner of time.”
Trimmer said the company is about to sign some government contracts that will put Eagle cabinets and metal products on the next generation of U.S. naval destroyers.
This could result in as many as 25 jobs being created, he said. – May 3, 2018, The Intelligencer article excerpt
Doss Enterprises (Jane Lew, West Virginia) – Hiring new employees and purchasing new equipment:
The benefits of the Tax Cuts and Jobs Act are evident just from looking around the Doss facility, Capito said.
“When I saw their board of (new) hires, there must have been 20 or 30 names on there, just April and May,” she said.
The company has chosen to reinvest its tax savings in its employees and into new equipment, Capito said.
“All of the employees are seeing (it) in their paychecks,” she said. “(Doss) has also bought some new equipment with his money, which is a great investment. He’s going to be hiring at least another 30 people.” – May 2, 2018, WVNews.com article excerpt
Davis Trust Company (Elkins, West Virginia) - 3% across the board pay raises (on top of existing compensation structure.)
Appalachian Power Co. (Milton, West Virginia) – the utility will pass along tax reform savings to customers.
Appalachian Power Company saved $235 million dollars from the federal tax cuts and the company is proposing passing the money back to its customers in a variety of ways.
The multi-pronged proposal is in a filing with the state Public Service Commission due Wednesday. The PSC is requiring all utilities to tell it their tax cut savings and what they plan to do with it.
West Virginia Consumer Advocate Jackie Roberts told MetroNews the money clearly belongs to the customers.
“They (the utilities) had taxes in their rates and now the taxes in their rates have significantly decreased—so they shouldn’t be able to keep collecting and keeping those higher taxes in their rates,” Roberts said.
Appalachian Power Company Communications Director Jeri Matheney agrees–the $235 million Appalachian Power will save belongs to its customers.
“It is customer money. What we propose to do is provide a method to keep rates as stable as possible over the longterm and as much as possible eliminate the need for rate increases,” Matheney said.
The Appalachian Power distribution proposal for West Virginia customers includes:
–$131 million to completely offset the company’s fuel and vegetation control program funding request that was part of an April filing with the PSC
–$19 million reduction in the company’s base rate case filed earlier this month (taking the $115 million request down to $96 million)
–$51 million to reduce next year’s fuel recovery cost rate case
–$1 million for a pilot economic development grant program
–$30.1 million to return to customers over the next three years – May 30, 2018, MetroNews article excerpt
U-Haul (81 locations in West Virginia) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Citizens Bank of West Virginia (Elkins, West Virginia) -- $1,000 bonuses for all 66 employees:
Citizens Bank of West Virginia issued a bonus of $1,000 to each of their 66 employees, joining a number of U.S. companies to pass along savings from the federal tax reform to its staff. The announcement was made in a surprise staff meeting by the bank’s president & chief executive officer.
“One of the best investments we can make is in our employees who are dedicated to making sure our customers have great banking experiences at Citizens,” said President & CEO Nathaniel S. Bonnell. “This $66,000 investment demonstrates our thanks and appreciation to our team for their tireless efforts and commitment to the bank.”
The bank’s board of directors said it was an easy decision to reward the dedicated and hard-working employees of Citizens Bank. “There are several ways we will put the tax savings to work for Citizens,” stated Board Chairman Max L. Armentrout. “However, we are most excited about paying this bonus to the great employees we have working at our bank, serving our customers and shareholders.”
Employee reaction was overwhelming as they were excited to have $1000 checks arrive the same day as the announcement.
“This was totally unexpected!” said Assistant Trust Officer Crystal Kimbleton as she choked back tears. “This check will definitely help with upcoming high school graduation and college expenses.”
“It’s the best day ever!” exclaimed Alec Rader, Deposit Operations Administrative Assistant. “One thousand dollars, a pizza luncheon – this is not how I was expecting this day to go; what a great surprise!”
Head Teller Amanda Riffle stated she was totally speechless and shocked. “This money is going to go a long way in helping me pay down my college loan. It’s greatly appreciated!”
“I’m so grateful and it’s so amazing!” stated teary-eyed Mortgage Loan Processor Anita Jones. “I am going home to Indonesia this summer and this money will help tremendously with the cost of that trip!” Anita has not been home in nine years.
Lisa Plum, Deposit Operations Administrative Assistant II, says the employees of Citizens couldn’t ask to work for a better organization. “This was just wonderful news. I’m now going to be able to take a vacation this year that was not going to happen. We are so fortunate to work for a bank that cares so much for their employees.”
The overall sentiment of the employees throughout the bank was shock and gratitude. – Feb. 2018 Citizens Bank of West Virginia statement
Walmart – West Virginians employed at 43 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.
AT&T -- $1,000 bonuses to 880 West Virginia employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Home Depot - Six locations in West Virginia, bonuses for all hourly employees, up to $1,000.
Lowe's -- 2,000 employees at 18 stores in West Virginia. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance.
Ryder (Three locations in West Virginia) -- Tax reform bonuses for employees.
Starbucks Coffee Company (25 locations in West Virginia) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
T.J. Maxx – Four stores in West Virginia – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Cintas (Multiple locations in West Virginia) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Chipotle Mexican Grill (Multiple locations in West Virginia) - Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Comcast (Multiple locations in West Virginia) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
FedEx (Multiple locations in West Virginia) – Accelerated and increased compensation; pension plan contributions:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release
McDonald’s (101 locations in West Virginia) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
Note: If you know of other West Virginia examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
A Trump Ban on Flavored E-Cigarettes Will Cost Him the 2020 Election: Data on 12 Important Swing States
Over the past week, President Donald Trump has been considering an outright ban on nearly every electronic cigarette and vapor product on the market. Not only would the implementation of a flavor ban be disastrous for public health, but it may cost Trump the election in 2020.
In a piece for the Washington Examiner, I explained:
"Internal polling conducted by Americans for Tax Reform in October 2016, just five months after the Obama administration announced their own timeline for a de facto e-cigarette ban, found that 4 out of 5 adult vapers' vote-moving issue was where a politician stood on the issue of taxing, regulating, and banning e-cigarettes."
What might that mean in 2020? If you look at the 12 states which will likely determine the outcome of the election, based on the margin of victory or loss by Donald Trump in 2016 and changing political currents, there are at least 4.15 million adults in battleground states that use electronic cigarettes, according to FDA-funded survey data. Those states include Florida, Pennsylvania, Ohio, Michigan, North Carolina, Wisconsin, Georgia, Minnesota, New Hampshire, Maine, Arizona, and Nevada.
Here's how that breaks down per state (click to enlarge):
If voter turnout holds flat in 2020 over 2016, there are roughly 2.55 million vaper voters scattered across these 12 key battleground states. The data on the number of adult vapers may underestimate the true figure because adult use of these products has increased in the last two years. To ignore that these adults have used e-cigarettes to quit smoking cigarettes, something that they're proud of and strongly believe in would be among the biggest political miscalculations of the presidential campaign in 2020. Not only do these people rightly attribute the use of flavored nicotine products to saving their lives, but their family members, friends, and neighbors have likely heard their stories as well.
If Trump wants to depress voter turnout or turn voters away from his winning message in states where the margin of victory could be just a few thousand votes, banning flavored nicotine e-cigarettes would be a great way to go about it.
More from Americans for Tax Reform
In major win for consumers, Trump revokes California’s waiver on auto emissions standards
This morning President Trump announced that his administration will revoke California’s waiver that permits the state to set its own fuel economy regulations separate from national standards. This action from the president brings the U.S. closer to a single, unified fuel economy standard.
“The Trump Administration is revoking California’s Federal Waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially SAFER,” The President stated on twitter. “Many more cars will be produced under the new and uniform standard, meaning significantly more JOBS, JOBS, JOBS! Automakers should seize this opportunity because without this alternative to California, you will be out of business.”
Issued under President Obama, the California waiver forces auto manufacturers to build more expensive cars in compliance with California’s regulations. Under the waiver, auto manufacturers can comply with federal standards yet still barred from marketplace in California.
However, no other state is permitted a waiver from federal rules, meaning if another state would like to set less stringent fuel economy rules compared to federal requirements, it does not have that option. As auto manufacturers can’t economically build two separate vehicle fleets, the waiver effectively allows California to dictate national requirements for vehicles in 49 other states.
Grover Norquist, President of Americans for Tax Reform issued the following statement in response to President Trump’s announcement:
"Today’s decision by President Trump is a major win for consumers and the US economy. Letting California dictate emission standards for the 49 other states is a proven disaster for jobs, vehicle safety and affordability.
No one living in Ohio, Michigan or Florida voted for California’s nanny state politicians. Gavin Newsom’s bureaucrats have no business telling them what car they can or can’t drive. That decisions rightly belongs to consumers. Americans for Tax Reform applauds President Trump for revoking California’s waiver and freeing consumers from Californian bureaucrats."
Revoking California's waiver is step one of the administration’s anticipated reform to the Corporate Average Fuel Economy (CAFE) standards, with step two expected to be finalized later this year.
The administration’s proposed rule to freeze CAFE standards at 2020 levels is projected to save American consumers nearly $2,500 on the price of a new vehicle, putting more Americans behind the wheel of newer and safer cars. If finalized, the Department Transportation projects the rule would lead to a reduction of up to 1,000 lives lost annually in fatal vehicle crashes.
Photo Credit: Gage Skidmore
More from Americans for Tax Reform
Stephen Colbert Calls Out Warren for Dodging Middle Class Tax Question
In a face-to-face interview, CBS's Stephen Colbert called out Elizabeth Warren on The Late Show for repeatedly refusing to answer the question of whether or not she would impose tax increases on middle class Americans:
Here is the key exchange:
Stephen Colbert: "You keep being asked in the debates 'How are you going to pay for it? Are you going to raise the middle class taxes?' How are you going to pay for it? Are you going to raise the middle class taxes?"
Elizabeth Warren: "So, here's how we're going to do this. Costs are going to go up for the wealthiest Americans, for big corporations."
Colbert: "Taxes which will be in those costs?"
Warren: "Yeah. Hard working, middle class families are going to see their costs go down."
Colbert: "But will their taxes go up?"
Warren: "Well, but here's the thing."
Colbert: "No, but here's the thing. I've listened to these answers a few times before, and I just want to make a parallel suggestion for you about how you might defend the taxes that perhaps you're not mentioning."
This is at least the sixth time Warren has dodged the middle class tax question.
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.
Video: Warren Dodges MSNBC’s Middle Class Tax Questions
Warren's contentious exchange with MSNBC's Chris Matthews
Elizabeth Warren keeps dodging the middle class tax question. In the most recent Democrat debate on Sept. 12 in Houston, Warren dodged the question twice.
But an especially heated exchange between Warren and MSNBC’s Chris Matthews took place on July 30 following the CNN Dem debate. Matthews grilled warren asking if she would increase taxes on the middle class in order to shovel money to “Medicare For All.”
[Click here to view]
Chris Matthews: "Your pay won't go up. You dodged that tonight. Jake Tapper kept saying how much are your taxes going to go up.”
Elizabeth Warren: "How much are your costs going to go down?"
Matthews: "No, no, no, different question. How much will your taxes go up?"
Later in the interview, Matthews explicitly asked Warren: "Will you pay more in taxes?"
When she dodged the question, Matthews fired back and stated "Why don't you want to answer that question?”
During the CNN debate, Warren repeatedly dodged Jake Tapper's question asking if the middle class would pay more in taxes as a result of Medicare for All.
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.
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.
See more:
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”
Bill De Blasio: “As President, I would issue a robot 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
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
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.”
ATR Supports Trump Administration's Schedule B Reform
The Trump Administration has proposed a rule to streamline the nonprofit filing process and prevent future administrations from targeting organizations by leaking sensitive information. Under this proposal, many nonprofits including 501(c)(4)s, 501(c)(5)s, and 501(c)(6)s would no longer be required to submit a Schedule B form to the IRS.
The IRS has no need for the donor information and can enforce tax laws without it. On top of having no use for it, the IRS has inappropriately used the information. In 2014, the IRS had to pay the National Organization for Marriage $50,000 after disclosing their donors to an oppositional organization who published it.
Further, according to a 2016 study by the Government Accountability Office, the IRS has disproportionately targeted organizations based on religious, educational, and political views, specifically Tea Party groups.
The information that is public will not change under the proposed rule, though money and time will be saved on both sides by eliminating this tedious process. In fact, The Institute for Free Speech estimates that nonprofits would save about $63 million if Schedule B were repealed.
Critics have falsely stated that the rule will allow for illegal foreign transactions. However, there are already measures in place to track these transactions, and it is highly unlikely that anyone will admit to funneling illegal money on the form. Even if the IRS did suspect laws were being broken, it has no authority to share the information it collects with the FCC and the DOJ, the two agencies with the ability to enforce campaign finance laws.
The proposed rule would hold the IRS more accountable and protect free speech of donors and those working for non-profits. American citizens have the right to associate with and donate to organizations freely and privately. If a Schedule B is leaked, the IRS can and has faced legal consequences. In 2014, the IRS had to pay the National Organization for Marriage $50,000 after disclosing their donors to an oppositional organization who published it.
The proposed rule, “Guidance Under Section 6033 Regarding the Reporting Requirements of Exempt Organizations” will be open for comments until December 9. ATR urges support for Schedule B reform to eliminate the unnecessary time and effort of the process, while protecting privacy and free speech.
Photo Credit: Flickr - Martin Haesemeyer
60+ Groups to Congress: Defend American Workers from Union Coercion and Oppose the PRO Act
Today, a coalition of more than 60 groups and activists, led by Americans for Tax Reform, sent a letter to Congress. The letter urged members of Congress to vote against the PRO Act because of the harm the Act would do to American workers.
The full letter can be found here or below:
September 16, 2019
Dear Member of Congress,
We are writing in opposition to the Protecting the Right to Organize (PRO) Act. Senator Patty Murray and Congressman Bobby Scott introduced the PRO Act in the Senate (S. 1306) and House of Representatives (H.R. 2474) on May 2, 2019.
We oppose the PRO Act because the legislation would harm workers and taxpayers by codifying many of the Obama-era rules and decisions that led to higher unemployment and a stagnant economy. Representatives who vote for this bill are simply helping labor union bosses, their campaign contributors, at the expense of American workers.
For example, one of the Act’s harmful provisions would codify the National Labor Relations Board’s 2015 Browning-Ferris Industriesdecision. That decision expanded the definition of joint employer and increased liability for many businesses, especially franchises. In fact, the International Franchise Association has found that the expanded joint employer rule costs the franchise sector as much as $33.3 billion annually and has led to 376,000 lost job opportunities. Codifying this NLRB decision would effectively eliminate this business model, putting many employees and small businesses out of work. However, big labor would benefit from this provision because they could unionize these employees more easily.
This bill would also force all private sector workers to pay fees to labor unions, whether they wanted to support them or not. This would effectively invalidate all state Right-to-Work laws and would deny First Amendment rights to these workers. This provision hurts workers because right-to-work laws have benefited workers. From 2008 – 2018, for example, the percentage growth in the number of people employed in right-to-work states was 10.8%, while the percentage for those in forced-unionism states was much lower at 5%. Invalidating these laws would, therefore, hurt workers and employers, but would provide more dues to unions.
Another business model that is severely threatened by this legislation is the gig economy. The PRO Act would codify California’s new “ABC” test to determine who is an independent contractor and who is an employee. This test makes it harder for employers to hire independent contractors, but makes it easier for unions to unionize workers. According to the Federal Reserve, about 3 in 10 Americans work in the gig economy, and these workers would be at risk for losing their jobs.
One final example is the provision that would codify the Obama-era ambush elections rule. That rule shortened the time frame of an election to unionize workers and provided the contact information of workers without their consent to labor unions. This rule harmed workers by providing them with an inadequate amount of time to learn how unionization would affect them. In addition, unions would be able to violate the privacy of workers once they had their contact information. Once again, with a shortened time frame and the contact information of workers, labor bosses could more easily unionize these workers.
Because the legislation harms workers in order to help labor union bosses, we strongly urge Members of Congress to vote against the PRO Act.
Sincerely,
Grover G. Norquist
President, Americans for Tax Reform
James L. Martin
Founder/Chairman, 60 Plus Association
Melodie Bowler
Associate Director, Alaska Policy Forum
Phil Kerpen
President, American Commitment
Lisa B. Nelson
CEO, ALEC Action
Tom Giovanetti
President, Americans for a Strong Economy
Rick Manning
President, Americans for Limited Government
Scot Mussi
President, Arizona Free Enterprise Club
John Palatiello
President, Business Coalition for Fair Competition
Garrett Ballengee
Executive Director, Cardinal Institute for WV Policy
Andrew F. Quinlan
President, Center for Freedom and Prosperity
Timothy Lee
Senior Vice President of Legal and Public Affairs, Center for Individual Freedom
Olivia Grady
Senior Fellow, Center for Worker Freedom
Catrin Wigfall
Policy Fellow, Center of the American Experiment (Minnesota)
Bob Luebke
Director of Policy, Civitas Institute (North Carolina)
David McIntosh
President, Club for Growth
Russell Hollrah
Executive Director, Coalition to Promote Independent Entrepreneurs
Nathan Benefield
Vice President & COO, Commonwealth Foundation (Pennsylvania)
Trey Kovacs
Policy Analyst, Competitive Enterprise Institute
Matthew Kandrach
President, Consumer Action for a Strong Economy (CASE)
Tom Schatz
President, Council for Citizens Against Government Waste
Katie McAuliffe
Executive Director, Digital Liberty
Grant Callen
President, Empower Mississippi
Peter J. Ferrara
Dunn Liberty Fellow in Economics, The King’s College
Senior Fellow, Heartland Institute
Senior Fellow, National Tax Limitation Foundation
Brian Minnich
Executive Vice President, Freedom Foundation (California, Oregon, Washington)
Adam Brandon
President, FreedomWorks
Victor Riches
President and CEO, Goldwater Institute (Arizona)
J. Scott Moody
CEO, Granite Institute (New Hampshire)
Tim Chapman
Executive Director, Heritage Action for America
Mario H. Lopez
President, Hispanic Leadership Fund
Fred Birnbaum
Vice President, Idaho Freedom Foundation and Idaho Freedom Action
Heather R. Higgins
CEO, Independent Women's Voice
F. Vincent Vernuccio, J.D.
President, Institute for the American Worker
Chris Ingstad
President, Iowans for Tax Relief
Sal J. Nuzzo
Vice President of Policy, The James Madison Institute (Florida)
Brett Healy
President, The John K. MacIver Institute for Public Policy (Wisconsin)
Becki Gray
Senior Vice President, John Locke Foundation (North Carolina)
Dave Trabert
President, Kansas Policy Institute
Connor Boyack
President, Libertas Institute (Utah)
Michael J. Reitz
Executive Vice President, Mackinac Center for Public Policy (Michigan)
Matthew Gagnon
CEO, Maine Heritage Policy Center
Carl Copeland
Executive Director, Massachusetts Fiscal Alliance
Jameson Taylor, Ph.D.
Vice President for Policy, Mississippi Center for Public Policy
Robert Fellner
Policy Director, Nevada Policy Research Institute
Douglas Kellogg
Executive Director, Ohioans for Tax Reform
Daniel J Erspamer
CEO, The Pelican Institute for Public Policy (Louisiana)
Lorenzo Montanari
Executive Director, Property Rights Alliance
David Y. Denholm
President, Public Service Research Council
Mike Stenhouse
CEO, Rhode Island Center for Freedom and Prosperity
Paul J. Gessing
President, Rio Grande Foundation (New Mexico)
Bette Grande
CEO, Roughrider Policy Center ND
Karen Kerrigan
President & CEO, Small Business & Entrepreneurship Council
Maureen Blum
Founder and Principal, Strategic Coalitions & Initiatives, LLC
Tim Andrews
Executive Director, Taxpayers Protection Alliance
Lynn Taylor
President, Tertium Quids (Virginia)
Christian N. Braunlich
President, Thomas Jefferson Institute for Public Policy (Virginia)
Carl Bearden
CEO, United for Missouri
Suzi Voyles
Georgia President for Eagle Forum
Georgia State Director for Maggie’s List
Rick Esenberg
President and General Counsel, Wisconsin Institute for Law and Liberty
Worker Rights Alliance (Washington)
Heather Greenaway
Executive Director, Workforce Fairness Institute
Carol Platt Liebau
President, Yankee Institute for Public Policy (Connecticut)
Norquist Letter to Romney Regarding Capital Gains
Today, ATR President Grover Norquist sent a letter to Senator Mitt Romney (R-Utah) regarding indexing capital gains taxes to inflation. The full text of the letter can be found here and below:
To: Senator Mitt Romney
From: Grover Norquist
Cc: Republican Members of Congress
September 13, 2019
Dear Senator Romney,
A few weeks ago you said you were “looking at” joining the hard left in the Democrat party in imposing a national energy tax on all Americans – a carbon tax – along with Elizabeth Warren, Kamala Harris, Joe Biden, and Pete Buttigieg.
Today in a letter you not only undermined Senator Ted Cruz and 20 other Senate Republicans, you misstated President Trump’s position on ending the taxation of inflation in capital gains.
President Trump has repeatedly, correctly stated that he knows he has the legal authority to end the taxation of inflation in capital gains by allowing taxpayers to calculate cost as “cost plus inflation.”
The President is aware that the Supreme Court of the United States ruled that agencies have that power in Verizon v. FCC in 2002. Even before that finding, Supreme Court lawyer Chuck Cooper made it clear that the President and Treasury Secretary have this authority. That was only made more obvious with the 2002 Verizon decision which Cooper detailed in his updated 2012 legal memo.
You also used regrettable left-wing rhetoric. According to the IRS 24,139,920 American households had a capital gains filing in the most recent year of available data. Eighty-two percent of these households made less than $200,000 that year and 56 percent made less than $100,000.
In your home state of Utah, 181,300 households had a capital gains filing. Eighty-four percent of these Utah households made less than $200,000 per year and 57 percent made less than $100,000 per year.
As noted by the Tax Foundation, “the lower rate on capital gains does not mitigate the inflation issue, as taxpayers still face tax liability whether they made a real gain or real loss.”
As also noted by the Tax Foundation: “Indexing provides important protection for all citizens, even those who have no capital gains, by reducing government’s ability and incentive to raise effective tax rates by inflating the currency.”
White House economists and Congressional Republicans together with free market groups and the business community in all 50 states will continue to push this initiative forward and get it enacted before the 2020 election.
You are putting yourself on the wrong side of the two biggest divisions between the two parties today: Democrats want to tax energy with a carbon tax while Republicans are unified in opposition. Democrats like Joe Biden want to increase the capital gains tax burden, and Republicans want to reduce the capital gains tax burden. The only way to reduce the capital gains tax burden between now and 2020 is through executive action.
It is wrong for the government to tax inflation. Ending the inflation tax will help create jobs and raise wages. ATR will continue to highlight the tens of millions of Americans who will benefit directly from ending the inflation tax, many of whom live in Florida, Pennsylvania, Michigan, Ohio, Wisconsin, and Minnesota. Good policy is good politics.
Ending the inflation tax on capital gains has broad and deep support. The growing list of supporters will not be discouraged by your letter.
Sincerely,
Grover G. Norquist
President, Americans for Tax Reform
Photo Credit: Gage Skidmore
Czech Republic Introduces Digital Tax on American Tech Companies
The Czech Republic joins a growing number of European countries that are imposing a harmful digital services tax on American tech companies. The Czech Ministry of Finance has drafted a law introducing a 7 % digital tax on revenue from online advertising, the sale of user data, and inter-mediation services, following the European Commission’s similar proposal from 2018.
The Czech government expects the levy to be introduced in mid-2020 and estimates the tax will generate CZK 2.1billion ($90 million) in additional revenue in 2020, and CZK 5 billion ($215 million) annually after that.
The tax hits companies with global turnover higher than 750 million euro annually and with sales within the Czech Republic over 1.9million euro.
Finance Minister Alena Schillerova is following the French approach saying that the tax will apply until global tax measures are agreed at the OECD level.
Make no mistake that the Czech digital tax is discriminatory. By using revenue as a proxy for nationality, the Czech Republic is looking to pillage the accounts of American tech companies in order to get their “fair share” of tax. While the OECD is working to develop a global consensus on the issue, the Czech have decided to go ahead and follow France, risking worsening the Czech-American relationship and a massive blow back on future trade.
Photo Credit: 3D_Maennchen
Podcast: Lessons from the Battleground. Ohio Cuts Taxes, Regs, But Ups Spending.
The Buckeye State is making progress for taxpayers, with some tax cuts, regulatory reform, and more. While setting some good examples, the state's Medicaid expansion and rising spending levels aren't examples other states want to follow. Buckeye Institute's Greg Lawson joins the podcast to talk about all this and more.
Elizabeth Warren is Still Dodging the Middle Class Tax Question
Democrat presidential candidate Elizabeth Warren yet again dodged questions asking if the middle class would see a tax increase under her proposed “Medicare for All” plan during the ABC debate on Thursday night.
Here is the key exchange:
George Stephanopoulos: “Senator Warren, let me take that to you, particularly on what Senator Biden was saying there about health care. He's praised Bernie Sanders about being candid, says that Senator Sanders has been candid about the fact that middle class taxes are going to go up and most of private insurance is going to be eliminated. Will you make that same admission?”
Elizabeth Warren: [dodge]
Stephanopoulos: “Direct question. You said middle class families are going to pay less. But will middle class taxes go up to for pay for the program? I know you believe the deductibles and premiums go down.”
Warren: [dodge]
Americans for Tax Reform president Grover Norquist said: "If Elizabeth Warren will not admit the obvious—that her wild spending will require broad-based tax hikes on the middle class—in a Democrat debate, will she ever tell the truth in a general election?"
While Warren won't admit that the middle class will pay more in taxes as a result of Medicare for All, Sanders openly admits it.
“Yes, [the middle class] will pay more in taxes,” Sanders said during the June Democratic debate on NBC.
Jeff Greenfield from Politico 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.
See more:
Video: 2020 Democrats Promise Higher Taxes
Biden Caught Lying about GOP Tax Cuts
Bill De Blasio: “As President, I Would Issue a Robot Tax”
Bill De Blasio: “As President, I would issue a robot 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
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
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.”
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