NEW YORK, NY – The Trump tax bill continues to be a drain on this countries finances while an incentive for companies to relocate out of the USA. Large corporations are using the profits gained for massive stock buybacks and not to add jobs in this country.
To get the tax cut bill passed, corporations made promises to create new jobs and raise wages. Although President Trump said businesses would use the tax bill profits to bring back jobs from overseas, instead, the tax bill actually contained provisions that created incentives for companies to offshore jobs. Companies took the profits, raised corporate salaries and continued moving factories overseas and laying off American workers.
CWA President Chris Shelton appearing on Washington Post Live said “Employers were coming out saying they were going to give everyone a $4,000 wage increase. That just hasn’t happened and isn’t on the horizon to happen. They said they were going to increase jobs. One of our employers, AT&T, where we have about 110,000 people, said they were going to create 7,000 jobs for every billion dollars in the tax cut. Well, AT&T got a three billion dollar tax cut, and we’ve seen 6,000 layoffs since the tax cut happened.”
Workers across the country are feeling duped by the tax cut. Not only are salaries not increasing but companies are continuing to set up operations outside the USA. General Motors continues to downsize in our country while setting up huge factories in Mexico that build cars for the American market. Harley-Davidson is closing their Kansas City plant and laying off 800 workers while relocating in Thailand. Mondolez Foods (Nabisco) rather than invest $130 million in modernizing the plant in Chicago, where Oreos have been produced for the past 100 years, built a factory in Mexico. The result: a loss of 600 well-paying jobs in Chicago.