More Layoffs By Corporations That Profited Enormously From Trump’s Tax Law
February 11, 2020
Trump promised that his tax breaks for big corporations would spur investment and the profits would trickle down to workers. Now we have even more evidence that was a lie. Deere & Co. and AT&T together laid off tens of thousands of workers despite raking in tens of billions of dollars as a result of Trump’s tax law.
Deere & Co announced that it will lay off hundreds of workers in Iowa, even after Trump’s tax law helped cut its tax bill to zero in its first year.
Associated Press: “Deere & Co. plans to lay off 105 more workers in Dubuque… It would be the third round of layoffs at the plant in the past few months. In October the company said more than 110 workers would be laid off by Nov. 18, and in December the company announced that nearly 60 workers would be laid off effective Jan. 6.”
NBC News: “The Moline, Illinois-based Deere, which was started in 1837 by blacksmith John Deere, who made farming plows, reported earning $2.15 billion in U.S. income before taxes. It owed no U.S. taxes in 2018 and reported that it was owed $268 million from the government, after taking into consideration various deductions and credits, according to its annual filing with the Securities and Exchange Commission. The company reported global profits of $2.37 billion.”
AT&T slashed business investment and laid off tens of thousands of workers despite pocketing $42 billion from Trump’s tax law.
VICE: “AT&T’s earnings report released Wednesday makes it clear that AT&T’s promised tax-cut driven investment never occurred. Despite a steady parade of government favors, the company’s network investment has been steadily declining since 2016, dropping to $3.8 billion in the fourth quarter of 2019—the lowest levels in roughly a decade. AT&T has told investors that the company’s shrinking investment is slated to continue in 2020, with the telecom giant spending $3 billion less in capital expenditures this year.”
VICE: “Little if any of that savings appears to have found its way to employees, customers, or the company’s network. The Communications Workers of America, the telecom sector’s biggest union, says AT&T’s promised jobs never arrived either. Union officials today complained that AT&T earnings show the company has laid off 37,818 employees worldwide since the tax cut was passed in 2018, with 4,040 pink slips sent out to employees worldwide in the fourth quarter of 2019 alone.”
CBS News: “AT&T as a whole profited handsomely, becoming one of the biggest corporate beneficiaries when it pocketed an estimated $42 billion tax windfall.”
Trump repeatedly cited AT&T as the poster child for how his corporate tax cuts were supposed to trickle down to workers. He was wrong.
Trump: “AT&T plans to increase U.S. capital spending $1 billion and provide $1,000 special bonus to more than 200,000 U.S. employees, and that’s because of what we did.”
Trump: “It started with, well, AT&T. We might as well give them credit. But they gave thousand-dollar bonuses to their employees, and that’s a lot of employees. Then, all of a sudden, other companies came along.”
Trump: “And I must say, AT&T was the first one and they did it — $1,000 per employee; they have hundreds of thousands of employees. And many companies followed immediately thereafter, and now they’re following.”