Workers Want it Guaranteed
Corporations Stop Laughing Long Enough to Respond
In what has to be one of the most illogical and unsupported economic theories the Trumpies say that by massively cutting business taxes all of that money will be given to workers. See, since 2009 corporate profits soared. And since 2009 worker's incomes have been stagnant. So naturally increasing profits will result in higher incomes.
This week, the Communications Workers of America asked several companies that employ its members to promise to give workers a pay increase if the cut in the corporate tax rate goes through. The request, while unlikely to be heeded, highlights a critical question over who would benefit the most from the tax bill: shareholders or workers?
Seems reasonable enough to us. And the response, seems expected to us.
In a letter sent this week to the top executives of Verizon, AT&T and six other companies, the communications union asked them to pledge a $4,000 annual pay increase for employees for every year that the corporate rate rests at 20 percent. The union, which has called the tax measure “an outrageous money grab” and urged lawmakers to reject it, also asked the companies to say that they will not take advantage of other changes in the corporate code to send American jobs to other countries.
The companies largely declined to comment or dismissed the letter as a stunt.
Jim Gerace, chief communications officer for Verizon, said that the company would take up the wage issue with the union when contract negotiations begin in 2019, “regardless of the outcome of tax reform legislation,” and that “it’s just too early to speak to the impacts on our business” from the tax bill.