Author: Chris Macke

10 Trade Myths Destroying American Jobs: Myth #7…100% of Labor Savings Are Passed on to Consumers

A key but often unspoken assumption in arguments for free trade is that 100% of the labor cost savings associated with moving production overseas are passed on to consumers.  The argument goes like this:  Sending jobs overseas is okay and actually good for the U.S. because it increases the standard of living for Americans because the goods are cheaper.  In reality, however, companies make products in countries with lower labor costs to make more profits, not to offer American consumers lower priced goods. It is naïve to assume that 100% of the labor savings are passed on to consumers....

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Walmart, Carrier Firings Highlight Glaring Flaw of New Tax Bill

We warned Americans in a Dec. 7 piece in The Hill that the tax bill being considered and eventually passed by Congress and signed by President Trump would allow companies to fire Americans and receive massive tax cuts. Now it is happening. Walmart announced that it would fire an estimated 9,450 employees as it closed 63 Sam’s Club stores. Remember the Indiana-based heating and air conditioning company, Carrier Corporation, that received $7 million in incentives last year? It announced 215 firings. Surely this will impact the tax cuts they receive under the recently passed tax bill. After all, we were promised that the reduction of...

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Apple Hiring, Bonuses Come at Heft Cost to Taxpayers

 Apple Inc. announced that it planned to hire 20,000 employees over the next five years, give $2,500 bonuses in restricted stock to its existing employees and invest $30 billion in U.S. facilities over the next five years. President Trump promptly tweeted, “Great to see Apple follow through as a result of TAX CUTS.” Is Apple hiring 20,000 people, paying $2,500 in stock bonuses and investing $30 billion in U.S. facilities as a result of the tax cuts as the president claimed? Here is what Tim Cook said when pressed on the question: “There’s large parts of this that are results of...

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Broken Tax Plan The Result of a Runaway Campaign Finance System

Republican tax reform is either a profile in courage or a reflection of the need to change an out of control campaign finance system. A CNBC poll showed that Americans want Congress and the president to focus first on items other than tax reform. Other polls indicate that most Americans are against cutting the corporate tax rate and a majority don’t believe corporations will put the tax savings toward job creation. So why has Congress made a tax bill with two-thirds of the proposed tax cuts going to corporations their priority? It is all about finances. What is uncertain...

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The Wolf of Wall Street Could Bridge The Tax Bill’s Partisan Divide

The Senate passed its tax bill with no Democratic support. This should not be surprising considering that tax reform previously devolved into shouting matches between Republicans and Senators, including between Senators Orin Hatch (R-Utah) and Sherrod Brown (D-Ohio). It is emblematic of the yawning divide between Republican and Democratic views of the likely economic outcomes resulting from significantly cutting corporate tax rates. Republicans exude optimism when talking about the likely impact of tax cuts on employment and wage growth. A white paper from the president’s Council of Economic Advisers forecasts a $4,000 increase in wages for the average family. Republican optimism...

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