The Corporate Tax-Cut Dividend
Wall Street Journal
December 21, 2017
"Nancy Pelosi has decided that no Democrat, not even the irrepressible Chuck Schumer, is going to outbid her in pouring forth denunciations of the tax reform of 2017. The bill, she says, reflects 'the greed of those with power, the cruelty that is in the heart of the tax scam.'…
"Alas for Rep. Pelosi, the business reaction so far to the tax bill is starting to look like the ending of 'It’s a Wonderful Life.' As we went to press, at least six large corporations had announced plans to do more for their employees, explicitly attributing their action to the tax bill’s business tax reforms.
"Boeing, saying the new law 'boosts Boeing’s competitiveness,' announced it will move up an additional $300 million of investments, dedicating $100 million to corporate giving; $100 million for worker development; and $100 million to enhance the company’s facilities.
"AT&T said it will increase its U.S. investments next year by $1 billion, plus pay a $1,000 bonus to some 200,000 employees. Comcast CEO Brian Roberts, explicitly citing tax reform and the FCC’s decision to end net-neutrality, pledged a $1,000 bonus to about 100,000 employees and vowed to invest 'well in excess' of $50 billion over five years.
"Wells Fargo and Fifth Third Bancorp said they would increase their minimum wage to $15 an hour, with Fifth Third also throwing in a $1,000 bonus for 3,000 hourly workers. Nexus Services is giving a 5% pay raise to its employees and hiring 200 more…
"If Nancy Pelosi ever did anything in her political career that produced this result from corporations, she’d be dancing down the aisles of the House of Representatives in a Santa Claus suit. Instead, the Democrats are dripping bile on the entire bill. 'There are only two places where America is popping champagne,' said Sen. Schumer, 'the White House and the corporate board rooms.'
"How any of this is bad is a mystery...Democrats used to be the party of hope. Now, by their daily admission, they have become the party of hoping that tax cuts will fail and private investment won’t help workers."
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Budget and Spending Taxes