While I fought against the Republican tax plan, I’m not personally against the idea of cutting taxes. I think, in certain instances, cutting taxes can make sense, especially in tough economic times, when those cuts are being directed at non-wealthy Americans, who are more likely to put the money they receive back into circulation, creating jobs, and boosting the overall economy. What I objected to about this most recent Republican tax plan was that a) it wasn’t necessary, given that the fact the economy was already growing, and b) the money could have been used better elsewhere, like assisting in our transition away from fossil fuels. [note: Global climate change is real.] And, of course, I objected to the fact that most of the $1.5 trillion in tax cuts would be directed toward America’s super-wealthy, at the expense of America’s non-wealthy, who would see programs that they depend upon cut as the government contracted to offset the loss in federal revenue. The Republicans, of course, argued that, ultimately, the non-wealthy would benefit as well, as the rich would take this new-found wealth, re-invest in their businesses, start paying better wages, and create new jobs, but, having lived through the lie of trickle down economics one time, I knew that was bullshit. The truth, as the economists told us going into this, was that the money being handed back to the rich would not, on the whole, be used to make the lives of non-wealthy Americans better, and that the money being given back to corporations would more likely be spent buying back corporate stock, to drive up share prices, than handing out pay raises to loyal employees. And, in the wake of the Republican tax bill passing, that’s pretty much what we’ve seen.
Yes, some corporations, at the urging of Republicans in Congress, are announcing employee bonuses. Generally speaking, however, it’s playing out exactly like some of us had feared. Sure, companies like War-Mart announced “$1,000 Bonuses” and minimum wage bumps, but, on the very same day, they also announced 7,500 layoffs and 63 store closings. And, just a day later, the company announced the firing of 3,500 co-managers and plans to eliminate 1,000 jobs at their Arkansas headquarters. Oh, and those $1,000 bonuses weren’t for everyone. They were just for people who had been with the company 20 or more years.
As some of you will no doubt argue, $1,000 bonuses can make a huge difference in the life of an hourly worker. And you’re absolutely right. Which is why I believe that the entire tax plan should have been directed at this segment of our population, and not at the wealthy, in hopes that they might do the right thing, and allow some of their new-found fortune to trickle down upon those beneath them. So, yes, it’s good that Wal-Mart is doing this, but, to be honest, it’s a drop in the bucket when you consider that the Republican tax deal, which dropped the corporate tax rate to 21%, is expected to save the retailer between $1 billion and $2 billion each and every year.
And Wal-Mart, by the way, isn’t alone in announcing significant layoffs. Since the Republican tax giveaway to the rich was signed into law, we’ve seen several companies announce layoffs. Macy’s announced the closure of 68 stores, and the termination of 10,000 jobs. [Yesterday, Macy’s raised their projection, adding 5,000 moe job cuts, and 7 new store closures.] And Toys R Us is closing 182 stores. And JCPenny announced it would be closing 138 stores. And it’s not just retailers that are laying people off in response to increased competition from online retailers like Amazon. AT&T announced plans to cut 80,000 more job. And Disney announced plans to layoff 5,000-10,000. And, just yesterday, Kimberly-Clarke announced that they’d be firing 5,500, and shuttering 10 manufacturing plants, in spite of having $3.3 billion in operating profit. Oh, and remember that Carrier plant in Indianapolis, where Trump went during the campaign and told the employees that he’d stop their jobs from being sent to Mexico? Well, he lied. The company just announced that another wave of jobs – this time 215 – would be moving across the southern border.
Oh, and here’s the sweetest part. The Republican tax bill, according to economists, is actually incentivizing American companies to move jobs outside our country’s border… American First, indeed… And, get this, Kimberly-Clark execs say they’ll be paying for their restructuring, which will cost 5,500 people their jobs, using the money they’ll receive from the Republican corporate tax cut.
So, yes, what Mitch McConnell and Paul Ryan are saying about a few companies giving 2018 bonuses as a result of the Republican tax bill may well be true. I would argue, however, it doesn’t change the larger narrative, which is one of wealth increasingly concentrating in the hands of the super-rich. And, here, with more on that, is an excerpt from USA Today.
A new billionaire is created every other day. The three richest Americans have the same amount of wealth as the poorest half of the U.S. population. And 82% of the global wealth generated last year went to just 1% of the world’s population.
These are among the findings of a study released Sunday by Oxfam, a British campaigning group, as political and business leaders, including President Trump, prepared to gather in Davos, Switzerland, for the World Economic Forum’s annual meeting. Income inequality will be a major topic at the conference, which runs from Tuesday through Friday.
“There’s a billionaire boom,” said Paul O’Brien, Oxfam America’s vice president for policy and campaigns. “A perfect storm is driving up the bargaining power of those at the top while driving down the bargaining power of those at the bottom. If such inequality remains unaddressed, it will trap people in poverty and further fracture our society.”…
So it was against this backdrop that our elected Republicans chose to hand $1.5 trillion over to the rich, instead of investing it in the American people. They could have passed laws that incentivized corporations to keep their jobs in the United States. They chose not to. Knowing that they retail sector was imploding, they could have invested these funds in green energy job training programs. Instead they handed it over to the super-wealthy. And, as a result, the division between rich and poor is once again becoming untenable, with the middle class, and the security it provided, once again fading away.
Again, I don’t have a problem with the Republican taking to social media to crow about these one-time bonuses being doled out by bug business. I just think, if they want to talk credit for that, they should also take credit for the other things that have happened since they passed their tax bill. They should also send tweets out, alerting people to the fact that, for instance, after receiving their $5 billion tax cut, Pfizer announced that they’d be firing 300 scientists, shutting down their Alzheimer’s and Parkinson’s research programs, and using their money instead to buy back their corporate stock. It’s only fair.