In December of last year, the Republicans passed major tax reform legislation. Then, all hell broke loose — if you believe House Minority Leader Nancy Pelosi. After the bill was sent to conference, in what we suppose to be a reaction to the fact that people won’t be arrested anymore for not paying their “Obamacare fees,” she said “This is the end of the world. The debate on health care is live/death; this is Armageddon.”
After the bill was passed, millions of lives were destroyed. Every major American city was leveled in a catastrophic disaster that claimed heaps of lives. The survivors were forced to live in a dystopian world where violence ruled the day. It was reminiscent of “The Walking Dead.”
Then, Pelosi awoke from her long nap, realizing that none of it was real. She was, in fact, living her worst nightmare: the reality that the GOP’s tax reform legislation was benefiting the American public. It turns out that allowing people to keep more of their money doesn’t quite have the impact of a massive thermonuclear strike.
What was Pelosi going to do?
The apocalypse she predicted hadn’t materialized. Not only were people able to keep more of their hard-earned money, but the biggest companies in the nation were also — *gasp* — giving out bonuses and increasing wages! But, Pelosi had an idea: she would downplay the positive impact of tax reform.
Nancy Pelosi: Tax Reform Bonuses Are “Crumbs”
On Friday, the House Minority Leader began her campaign of misinformation. She tweeted:
“Pretty obnoxious the GOP thinks workers should be weak-kneed with gratitude for corporations giving them pennies while pocketing a multi-billion dollar tax break stolen from the future of the middle class. #GOPTaxScam”
At a town hall, she explained her position on the bonuses, “There’s a little mousetrap who’s got a little piece of cheese on there, and there’s a mouse about to take it, and that’s called the middle class.” She continued, “And around it are fat cats, they look a lot like elephants, but anyway, around there. And that’s the thing. Get this little thing, and we get this big bonanza. You get the crumb; we get the banquet.”
So basically, most of America is mice, and we are being led into a trap being set by overweight felines who resemble elephants. Many in the audience wondered if Pelosi was talking about tax reform or the plot of a badly-written children’s book. Nevertheless, Pelosi — who is worth $29.35 million — continues to denigrate the bonuses that many American workers are receiving. But is she right? Let’s see.
Companies Who Have Given “Crumbs”
USA Today reported that more than three dozen of the United States’ largest companies used part of their tax savings to give one-time bonuses to their employees. The table below includes the companies who have provided the amount of the bonus they are giving to their workers as well as the number of employees who will benefit.
|Company||Amount of Bonus||# Of Recipients||Total Amount Paid|
|Bank Of America||$1,000||145,000||$145,000,000|
|Discover Financial Services||$1,000||15,000||$15,000,000|
|Fifth Third Bank||$1,000||13,500||$13,500,000|
|Hartford Financial Services||$1,000||9,500||$9,500,000|
|Kansas City Southern||$1,000||6,485||$6,485,000|
|PNC Financial Services||$1,000||47,500||$47,500,000|
|Total System Services||$1,000||11,500||$11,500,000|
All in all, American companies are giving over $1 billion in bonuses to their employees. But that’s not all.
It’s Not Just The Bonuses
In addition to giving one-time bonuses, several companies have decided to give their employees higher wages and stock ownership. These are longer-term benefits that come directly from the tax reform legislation.
Apple — who is moving much of its operation back to the United States because of lower taxes — is giving $2,500 in stock to its employees. Verizon is giving 25 shares of stock to part-time employees and 50 shares to full-time workers. FedEx has stated that it will spend over $3 billion in bonuses, increased wages, and more hiring.
Associated Bank declared that along with a $500 bonus, they would increase its minimum wage from $10 per hour to $15 per hour. American Savings Bank is giving a $1,000 bonus to its employees and increasing their minimum wage from $12.21 to $15.15.
But we’re not done yet.
Aquesta Financial Holdings is also giving $1,000 bonuses to their workers and increasing their minimum wage to $15 per hour. The same holds true for Wells Fargo, Bank of Hawaii, BB&T Corp, Central Pacific Bank, and OceanFirst Bank. Western Alliance is increasing the wages for the lowest-paid 50% of employees by 7.5%.
There’s more, but I’m sure you’re too busy to read a long list of crumbs.
These Aren’t Crumbs, Nancy
Pelosi’s comments on the tax reform bonuses reveal a distinct lack of understanding of average Americans. Sure, a $1,000 bonus would be a drop in the bucket for people like the House Minority Leader — but to most, it is a significant benefit. Additionally, increased wages and stock ownership provide a long-term benefit to workers.
Democrats portray the GOP’s tax reform law as a piece of legislation that only benefits corporations and the wealthy. However, it is clear that lowering corporate tax rates has helped everyday Americans — and will continue to do so in the future. The left will continue to tell us that the tax reform law is nothing but a giveaway to greedy corporations, but their claims will ring false every time we open our wallets.