Trump's Full Court Press on Tax Reform

[Remus West]

AT&T is trickling down already.

Hey, ImLawBoy you going to spend that $1K on me as a thanks for voting for Trump?

I'm sure you know this already, but for those that don't, the union negotiated the bonus already, but now AT&T is claiming they're awarding it because of the tax bill. They're not. The union did it.

That's not accurate (at least, not fully accurate). The union may have negotiated some for of bonus for union employees, but many (most?) of the employees receiving this bonus will not be union employees. The union can't claim credit for that. As for me, it doesn't trickle up to my level, so I don't get the bonus - it goes to union employees, non-management, 1st and 2nd level managers. Third level and up don't get the bonus.

That said, given the capital that AT&T and most large corporations are sitting on, I'm guessing we had the money to do this even without the tax cut.

Not saying they deserve credit but are you sure the union does not? Typically they negotiate for levels rather than member so that more people will be impacted by their work and thus more likely to join (and thus pay dues). Could also be that AT&T decided to pay everyone to avoid disgruntled empoyees when only the Union got paid - which would also be a credit to the union although less of one.

[ImLawBoy]

That said, given the capital that AT&T and most large corporations are sitting on, I'm guessing we had the money to do this even without the tax cut.

It's also a bit strange to see everyone using the $1000 example of how the tax reform is already (somehow magically) working, however no one really seems to be talking about the 4600 layoffs that are scheduled. Weird, right?

That article is from years ago. It includes this tidbit:

The San Antonio-based company said in a regulatory filing that it plans to take a $374 million first-quarter pretax charge against earnings due to the job cuts. The company reports first-quarter earnings on Tuesday.

The company had 309,500 employees at the end of last year. When it announced the acquisition of BellSouth in 2006, it has said it would cut 10,000 jobs over three years from the combined company to eliminate overlap. But the combined workforce grew by 7,000 last year, as the company built up its growing wireless and TV divisions even as land lines shrank in the face of competition from wireless and cable phone service.

It's been a long time since we were based in San Antonio, and I think the 3 years of job cuts we announced in 2006 are probably done by now.

[ImLawBoy]

AT&T is trickling down already.

Hey, ImLawBoy you going to spend that $1K on me as a thanks for voting for Trump?

I'm sure you know this already, but for those that don't, the union negotiated the bonus already, but now AT&T is claiming they're awarding it because of the tax bill. They're not. The union did it.

That's not accurate (at least, not fully accurate). The union may have negotiated some for of bonus for union employees, but many (most?) of the employees receiving this bonus will not be union employees. The union can't claim credit for that. As for me, it doesn't trickle up to my level, so I don't get the bonus - it goes to union employees, non-management, 1st and 2nd level managers. Third level and up don't get the bonus.

That said, given the capital that AT&T and most large corporations are sitting on, I'm guessing we had the money to do this even without the tax cut.

Not saying they deserve credit but are you sure the union does not? Typically they negotiate for levels rather than member so that more people will be impacted by their work and thus more likely to join (and thus pay dues). Could also be that AT&T decided to pay everyone to avoid disgruntled empoyees when only the Union got paid - which would also be a credit to the union although less of one.

I'm pretty sure that this extra bonus for non-union people would not have been granted absent the tax cut. We have a very well established bonus system, and the company would not have chosen to pay out all that extra money to keep up with the unions - management knows that unions have different compensation structures, and we really don't worry about it.

I also haven't seen the source showing that this was already guaranteed in the union contract. I haven't had much time to do any looking into it (I do actually have to do my job at some point), but if anyone has a reliable source on that, I'd be interested in seeing it.

[Remus West]

You are our reliable source, damn it! That's why we ask you questions.

Someone call Isgrimnur.

[Isgrimnur]

Phone-only posting today, so bear with me...

[ImLawBoy]

This article appears to contradict the claim that this bonus was already part of the union contract.

The bonuses are not a part of a union contract agreement announced last week, said a spokeswoman for the Communications Workers of America. But, the group said, they are a result of conversations between CWA President Christopher Shelton and AT&T's Stephenson.

[Isgrimnur]

ThinkProgress

AT&T’s latest announcement comes on the heels of a December 14 agreement struck between the company and the Communications Workers of America. The union agreement, if signed by January 12, will afford 21,000 CWA union member employees a 10 percent raise and a $1,000 lump sum, in addition to the special $1,000 bonus announced this week.

However, a CWA spokesperson noted in an email to ThinkProgress that AT&T executives had agreed to the special bonus only after CWA argued that its employees should be given the “$4,000 wage increase promised by the Republican corporate tax cut.”

[ImLawBoy]

So it appears that this may have been a handshake agreement between the CWA and AT&T, but not actually in the contract. In other words, if the tax cut had not passed, AT&T would not have agreed to pay the bonus. Also worth noting, the contract under discussion only covers 21,000 of our CWA represented employees, so only a fraction of our union work force. Even if it were included in that contract, the bonus would not automatically apply to all union contracts.

I opposed this tax bill, but let's at least play fair.

[Smoove_B]

That article is from years ago. It includes this tidbit

My bad! I heard AT&T layoffs on the radio and that was the first article that came up when I did a search. I guess maybe they were talking about this? Or this?

[ImLawBoy]

That article is from years ago. It includes this tidbit

My bad! I heard AT&T layoffs on the radio and that was the first article that came up when I did a search. I guess maybe they were talking about this? Or this?

From your first article:

"All affected employees will be offered the opportunity to work in our centers in San Antonio or Earth City, Mo.; and a relocation allowance."

The second article affects 700 employees. Out of 273,000 employees. Guess what? Large companies hire and fire people all the time, particularly when they have diverse businesses with shifting manpower needs.

[Smoove_B]

Oh yeah, I was just clearing up how I mixed the two stories. What's happening now is absolutely a different scale than what I first posted (that was not current). Once again I was duped by FAKE NEWS.

[ImLawBoy]

Gotcha. And I don't mean to minimize the pain for those who do lose their jobs like this (especially around Christmas time). I feel bad for them personally, even if I understand why the company does these kinds of things on a macro level (and as I pray they don't do it to me next!).

[naednek]

Oh yeah, I was just clearing up how I mixed the two stories. What's happening now is absolutely a different scale than what I first posted (that was not current). Once again I was duped by FAKE NEWS.

yes, and thanks to you, i posted it to a trump fanboi already claiming victory with the tax bill. I had to quickly delete once I found that the article was over 2 years old thanks to their commenting system.

[Smoove_B]

Hey, you know my internet is slow.

[stessier]

Hey, you know my internet is slow.

Just to be clear, we're not talking about the Bush tax cuts. And i really feel for you when you find out who won the 2016 election.

[Freyland]

Hey, you know my internet is slow.

Just to be clear, we're not talking about the Bush tax cuts. And i really feel for you when you find out who won the 2016 election.

Lol. Like, x2.

[msteelers]

Trump signing it today.

[El Guapo]

I had thought that he wasn't going to sign it until January, on account of the bill apparently triggering massive automatic spending cuts which would (further) crater GOP chances in an election year.

[Isgrimnur]

Per Gary Cohn, they’re going to try and get Paygo waived in the spending bill.

[malchior]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

[ImLawBoy]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

[malchior]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

Sure but not pretty much within hours of them doing it. And never before with a President who craves this type of fawning.

[LawBeefaroni]

It's a new twist to adopt a bonus program that is meant to mimic a purported policy benefit.


Policy lie: "You'll get more from lower taxes!"
Corporate overlords: "Here is more money!"
Masses: "Yay policy!"

[ImLawBoy]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

Sure but not pretty much within hours of them doing it. And never before with a President who craves this type of fawning.

Please. This is business/politics as usual. AT&T lobbied hard and publicly for this bill as good for business and the general public, including pledging an additional $1B is capital spending if it was passed. It's seen as a major victory for corporations, and telecoms are one line of business that is expected to do especially well with it. You would have seen the same response from AT&T had this been passed under the administration of President Pence, President Cruz, or President Rubio.

[malchior]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

Sure but not pretty much within hours of them doing it. And never before with a President who craves this type of fawning.

Please. This is business/politics as usual. AT&T lobbied hard and publicly for this bill as good for business and the general public, including pledging an additional $1B is capital spending if it was passed. It's seen as a major victory for corporations, and telecoms are one line of business that is expected to do especially well with it. You would have seen the same response from AT&T had this been passed under the administration of President Pence, President Cruz, or President Rubio.

To be clear I'm not picking on AT&T. The dig was at Trump's expense and how his narcissism has a potential effect on public policy. Big money has far, far too much power already. This disgusting Great Leader behavior potentially magnifies that.

[GreenGoo]

If it helps, Drumpf is already making a bunch of noise about how he's not getting nearly enough credit for the tax cuts. He is so freakin' damaged.

[ImLawBoy]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

Sure but not pretty much within hours of them doing it. And never before with a President who craves this type of fawning.

Please. This is business/politics as usual. AT&T lobbied hard and publicly for this bill as good for business and the general public, including pledging an additional $1B is capital spending if it was passed. It's seen as a major victory for corporations, and telecoms are one line of business that is expected to do especially well with it. You would have seen the same response from AT&T had this been passed under the administration of President Pence, President Cruz, or President Rubio.

To be clear I'm not picking on AT&T. The dig was at Trump's expense and how his narcissism has a potential effect on public policy. Big money has far, far too much power already. This disgusting Great Leader behavior potentially magnifies that.

I get that. I just don't think that AT&T's announcement is related to Trump's ego. It's more about positive press for the company.

[malchior]

I get that. I just don't think that AT&T's announcement is related to Trump's ego. It's more about positive press for the company.

Positive press about a labor deal, sure. Talking about the exact thing the proponents were trumpeting at practically the moment he signed it...that certainly feels it was all about Trump ego stroking.

Edit: I notice that many other big Corporate players are airdropping money now. This certainly feels like an investment against blow back on the huge unpopularity of the bill.

[ImLawBoy]

I get that. I just don't think that AT&T's announcement is related to Trump's ego. It's more about positive press for the company.

Positive press about a labor deal, sure. Talking about the exact thing the proponents were trumpeting at practically the moment he signed it...that certainly feels it was all about Trump ego stroking.

AT&T was one of those proponents doing the trumpeting all along. We actually had a company town hall with our CEO "interviewing" Paul Ryan and Steve Mnuchin about the tax bill during this process. I think you're misreading this.

[ImLawBoy]

Edit: I notice that many other big Corporate players are airdropping money now. This certainly feels like an investment against blow back on the huge unpopularity of the bill.

Notice how many are doing one-time bonuses vs. increasing actual yearly wages. The companies will continue to get the benefit of this year over year, while employees are getting grand on a one-time basis.

[malchior]

I get that. I just don't think that AT&T's announcement is related to Trump's ego. It's more about positive press for the company.

Positive press about a labor deal, sure. Talking about the exact thing the proponents were trumpeting at practically the moment he signed it...that certainly feels it was all about Trump ego stroking.

AT&T was one of those proponents doing the trumpeting all along. We actually had a company town hall with our CEO "interviewing" Paul Ryan and Steve Mnuchin about the tax bill during this process. I think you're misreading this.

I totally get that. It is the timing. In effect, 'We championed this and you got it done. As part of the thank you we will announce xyz right as you sign it' is where I see that as related to his behavior. I understand it is more complicated. But it certainly feels like it is a component to an extent.

Edit: To amplify - you can't announce a bonus like this without executive signoff, etc. These aren't spur of the moment decisions. This is orchestrated. I just don't buy this is normal business as usual.

[ImLawBoy]

I get that. I just don't think that AT&T's announcement is related to Trump's ego. It's more about positive press for the company.

Positive press about a labor deal, sure. Talking about the exact thing the proponents were trumpeting at practically the moment he signed it...that certainly feels it was all about Trump ego stroking.

AT&T was one of those proponents doing the trumpeting all along. We actually had a company town hall with our CEO "interviewing" Paul Ryan and Steve Mnuchin about the tax bill during this process. I think you're misreading this.

I totally get that. It is the timing. In effect, 'We championed this and you got it done. As part of the thank you we will announce xyz right as you sign it' is where I see that as related to his behavior. I understand it is more complicated. But it certainly feels like it is a component to an extent.

Edit: To amplify - you can't announce a bonus like this without executive signoff, etc. These aren't spur of the moment decisions. This is orchestrated. I just don't buy this is normal business as usual.

And again, I think AT&T would have had the same response (with the same timing) regardless of who was in office.

[edit for your edit]This was definitely all planned in advance, but that doesn't mean it was planned to stroke Donnie's ego. If anything, this was a reward to provide cover for the congresspeople who voted for this unpopular bill. "Look! It's already helping the bottom lines of Lunch Pail Larrys everywhere!"[/edit for your edit]

[Kraken]

If it helps, Drumpf is already making a bunch of noise about how he's not getting nearly enough credit for the tax cuts. He is so freakin' damaged.

As the midterms draw near, Congress will scramble to lay the blame for the tax bill at Trump's feet -- unless their gamble that public sentiment will turn around pans out. Something like 80% of voters WILL receive at least modest tax decreases in '18 and '19, US economic growth is expected to remain strong as the rest of the world's economy picks up, and wages should start ticking up as the labor market stays tight and immigration is repressed. Meanwhile, the Fed still can't explain why it's struggling to raise inflation to 2%. The tax bill only gooses GDP by an estimated 0.2%, but they'll credit their tax cuts for the boom economy anyway.

If that rosy scenario does play out, Trump might have something to sulk about.

[Zarathud]

AT&T was one of those proponents doing the trumpeting all along. We actually had a company town hall with our CEO "interviewing" Paul Ryan and Steve Mnuchin about the tax bill during this process. I think you're misreading this.

Not helping your cause. At all.

[Isgrimnur]

I’m trying to give him the benefit of the doubt that it’s not just because they pay him.

[Max Peck]

This AT&T announcement is a trend in Trump appeasement politics IMO. Every time he claims a victory on something an astute Corporate leader will step up and thank the Great Leader. Especially a company that was just handed a big regulatory change that likely benefits them.

Yes, before Trump, companies never boldly and publicly thanked politicians for big changes that benefited them.

Sure but not pretty much within hours of them doing it. And never before with a President who craves this type of fawning.

Please. This is business/politics as usual. AT&T lobbied hard and publicly for this bill as good for business and the general public, including pledging an additional $1B is capital spending if it was passed. It's seen as a major victory for corporations, and telecoms are one line of business that is expected to do especially well with it. You would have seen the same response from AT&T had this been passed under the administration of President Pence, President Cruz, or President Rubio.

To be clear I'm not picking on AT&T. The dig was at Trump's expense and how his narcissism has a potential effect on public policy. Big money has far, far too much power already. This disgusting Great Leader behavior potentially magnifies that.

If AT&T lobbied for the tax bill, maybe you should be picking on them. Just not necessarily for stroking Trump's ego -- that's plain old good business, and they'll probably get great value for the minor effort.

[ImLawBoy]

AT&T was one of those proponents doing the trumpeting all along. We actually had a company town hall with our CEO "interviewing" Paul Ryan and Steve Mnuchin about the tax bill during this process. I think you're misreading this.

Not helping your cause. At all.

I'm not in the mood for arguments based on vague statements, so if you want to raise a point (including whatever you think my cause is), please do so.

I’m trying to give him the benefit of the doubt that it’s not just because they pay him.

Same goes to you.

If AT&T lobbied for the tax bill, maybe you should be picking on them. Just not necessarily for stroking Trump's ego -- that's plain old good business, and they'll probably get great value for the minor effort.

Absolutely - pick on AT&T for supporting the tax bill. It makes good sense from a corporate standpoint, but it's reprehensible from a societal standpoint, and (as I stated previously) I certainly didn't support this bill personally. To say that AT&T's response was somehow materially influenced by Trump's narcissism, however, doesn't pass the sniff test. AT&T would have had the same response regardless of who was in office when this was passed.

[Moliere]

GOP Tax Plan Calculator

[Unagi]

paywall

[Smoove_B]

Everyone brace yourselves - the carried interest loophole wasn't closed (as promised) with the new tax reform. I wonder how that could have happened with all the careful planning and forethought that went into crafting this?

This week, as senior White House officials acclaimed passage of the tax overhaul in Congress, they also expressed one regret: failing to close the so-called carried interest “loophole” that benefits wealthy hedge fund managers and private equity executives. Despite Mr. Trump’s vows to eliminate a tax rule that allows some rich business leaders to pay lower tax rates than their secretaries, the president in this case was no match for the powerful lobbyists protecting the status quo.

“I don’t know what happened,” said Larry Kudlow, the conservative economist who crafted Mr. Trump’s campaign tax plan. “I don’t know how that thing survived,” he said, adding “I’m sure the lobbying was intense.”