Sen. Marco Rubio is backpedaling from his claim that there’s no evidence yet that the tax cuts aimed at corporations are benefiting workers. The comment was seized on by Democrats, who love tax cuts about as much as Dracula loves garlic arranged in a cross pattern under a sun lamp. Rubio’s spokesperson “clarified” his criticism, saying the Senator does support the corporate tax cuts to make America more competitive, but just wants to balance the cuts for business with lower taxes for families.
I can certainly agree with him on that. And many companies are using their tax savings for stock buybacks and shareholder dividends. But it’s hardly accurate to say that the corporate tax cuts aren’t benefiting average Americans.
Over half of Americans own stock, so higher dividends are good news for retirees and people with 401Ks. Also, it’s only May; the tax cuts have barely gone into effect. Aside from the bonuses, raises and benefit increases announced by many companies right after the bill passed (and dismissed as “crumbs” by Nancy Pelosi), corporations are moving money and jobs back to the US. In the past year, 14 states have hit record-low unemployment, with a number of states chalking up jobless numbers below 3%. Black and Latino unemployment are at decades-long lows. That doesn’t just mean people who spent the Obama years either looking for work or holding down three part-time jobs can now find decent jobs. It means that businesses now have to compete to attract and keep the best workers, instead of hundreds of applicants competing for one job. That means better pay, benefits and other inducements for all good workers.
Here’s a perfect example of that: a hair-cutting franchise where employees on all levels are receiving raises of up to 33% thanks to the booming economy fueled by the tax cut.
And how does that compare to the Democratic model? In New York City, 100 restaurant owners just sent an open letter to Mayor Bill DeBlasio, begging him to let them add a clearly-marked 5% surcharge to bills to cover the cost of numerous government-mandated minimum wage hikes that are killing jobs and driving restaurants out of business. Their spokesman, who runs 38 Appleby’s restaurants, says it’s necessary for the restaurants “simply to survive,” noting that neither DeBlasio nor New York Gov. Andrew Cuomo “has ever run a business in his life.” Although to be fair, they have run plenty of them into bankruptcy, or into other states.
One final example, for any young people thinking of voting the House back into the hands of Nancy Pelosi while you still need to pay off all that student debt: Under the Republican economy, the Union Pacific and BNSF Railroads are so desperate for workers, they’re offering signing bonuses of up to $25,000 for certain positions.
Even Nancy Pelosi might look at 25 grand as more than a crumb. Granted, to her, it might just be a Twinkie, but it’s still more than a crumb.
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