Only 2 percent of American adults reported receiving a bonus, a bump in pay or another perk due to the Republican tax overhaul passed in December, a new survey found.
Twenty-seven percent of respondents in the Reuters/Ipsos poll said they believe the legislation will increase the amount they pay in taxes, while 24 percent said they think they will pay less in taxes and 23 percent did not anticipate their tax payment will be altered.
A third of the respondents polled said the new legislation made them more likely to cast a ballot for a Democrat, while a quarter of those surveyed said the same for a Republican.
GOP lawmakers have commended companies like Walmart for announcing bonuses or additional employee benefits due to the tax law’s passage late last year. Democrats have slammed the legislation, which President Trump signed into law before the New Year, as a tax cut for the wealthy.
Oh yes, the bonuses. About that...
Courtesy of Vice:
Consider the one-time, $1,000 bonuses for employees that many companies, like Comcast and AT&T, have announced. First of all, one-time bonuses, while nice to have, are not wage increases. The promise of the tax cut was not that it would let companies throw a few bucks in the employee tip jar, but permanently raise pay. Bonuses don’t make up for stagnant wages, as Southwest Airlines’ mechanics union, which has been locked in a contract battle for over five years, told the company.
The Comcast and AT&T bonuses were also announced late last year, allowing them to be written off as a business expense in 2017. If a business gave a bonus in 2017, it went against the 35 percent corporate tax rate then in effect. If were to give one this year, the bonus would only go against the new 21 percent rate. In other words, it was cheaper for businesses to announce bonuses in December than January, suggesting we may not see much of their kind again.
But Comcast and AT&T in particular serve as the poster children for dishonesty in this matter. Because around the same time that they made a big show of rewarding employees with bonuses, both companies quietly engaged in layoffs. Comcast fired 500 members of its sales department before Christmas, and AT&T is eliminating “thousands” of jobs, according to its union, the Communications Workers of America. “We believe there's more than 4,000 people AT&T has (notified of layoffs) across the country,” Larry Robbins, vice president of CWA Local 4900, told the Indianapolis Daily Star.
Just to do the math on this, $1,000 bonuses to 200,000 AT&T workers is $200 million. Cancelling 4,000 jobs at the median US compensation of $59,000 per year (some of the workers affected likely earned less) would actually amount to a higher number, and unlike the bonuses, those layoffs are permanent. More to the point, any $1,000 bonus for workers is a drop in the ocean compared to chopping the corporate tax rate by 40 percent, as the Trump tax cuts will. AT&T, according to calculations from economist Dean Baker, will see $2.4 billion in annual savings from that tax cut, more than ten times the likely cost of its the one-time bonus. (Neither Comcast nor AT&T immediately responded to a request for comment.)
Also keep in mind that as Wal-Mart handed out bonuses, and promised a wage increase, they also suddenly closed Sam's Clubs all over the country, including every single one up here in Alaska.
Donald Trump is going to lie about all of this during his State of the Union speech, which is yet another reason I will be watching Netflix most likely at the time.
Source http://ift.tt/2BFiRHF
