Tuesday, January 23, 2018
 
Like Trump or Not, Corporate Tax Cut Already Having Desired Effect

WASHINGTON, D.C. Jan. 11 (DPI) – Walmart joined several other corporations in raising its base pay and doling out small bonuses to its workers, a clear sign that the corporate tax cut is already changing business behavior and benefiting rank-and-file workers.  And while the pro-business Wall Street Journal trumpeted the development, The New York Times kept the story off its index page, which itself is a sign that Trump won’t be getting credit from the American Left or independents anytime soon.

Walmart raised its base pay from $9 to $11 per hour, and handed out one-time bonuses of up to $1000 and expanded parental-leave policies. “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.,” the company said in a statement.

The landmark tax bill cut the corporate tax rate from 35% to 21%, creating a windfall for many corporations.

Readers on the WSJ site were somewhat typically supportive of the news that the tax bill was bolstering wages. The two most popular comments:

Democrats tried to force a minimum wage increase for years without success. Republicans put more money in the pockets of the private sector and in turn it turns into more money in the pockets of private citizens. Capitalism folks! Say what you want about some of the imperfections, but it works and I’ll take it over any other system!

When I voted for Trump, I was hoping this tax plan would create jobs, raise wages and get the next generation believing in the power of capitalism.  So far, my hopes are being exceeded!

Meanwhile, The Washington Post placed the story on its index page as well, but comments there were largely hostile to both Trump and the corporations. The most popular comments.

“The tax break allows them”? No, you could’ve done this *well* ahead of the tax break. You’ve been allowing the government and tax payers to pick up your costs via welfare, and now it’s coming home to roost as other stores provide better service and better wages than you and are undercutting your profits because you have *failed* to maintain Walton’s vision. Don’t act like the tax break is what’s allowing you to do this when your profits have been bolstered by cutting wages, cutting full time positions, and cutting benefits. You could’ve done this anytime if you actually *cared* about your employees.

I’m glad for the Walmart employees. However, this naked attempt of a right-wing company (see the Walton Foundation) to buttress Trump’s tax scam is pathetic. Target and other retailers already boosted starting wages as the economy recovered, while Walmart continued to encourage its employees to apply for government benefits rather than pay more.

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