And Now Kamala Wants to Repeal TCJA and Raise the Corporate Tax Rate
The Trump tax cuts helped McDonald’s expand its employee tuition benefit program. But now Kamala Harris wants to kill those tax cuts and raise taxes.
The McDonald’s tuition benefit expansion is one of over 1,200 examples of good news arising from the Tax Cuts and Jobs Act in a compilation maintained by Americans for Tax Reform.
But Kamala Harris has vowed repeatedly to repeal the TCJA and raise the U.S. federal corporate income tax rate to 28%, higher than China’s 25%.
Let’s look at how TCJA helped McDonald’s employees:
As noted by the Cleveland daily newspaper, The Plain Dealer on March 29, 2018:
McDonald’s is the latest company investing millions in its employees thanks to savings from the Trump tax cuts.
The fast-food giant announced commitment of $150 million over five years towards Archways to Opportunity. The program gives employees access to a variety of free educational services as well as high school and college tuition assistance.
As noted by Axios on April 2, 2018:
McDonald’s is the latest company to use the tax breaks it’s received as a result of the GOP’s tax bill to dole out extra money toward employees’ college tuition, reports CNN.
As noted by the Detroit Free Press on March 30, 2018:
McDonald’s said it will invest $150 million to the Archways to Opportunity global education program. This new investment was “accelerated by changes in the U.S. tax law,” put in place by the Trump Administration, which lowered corporate taxes, the company said in a news release.
The company also announced changes in eligibility that will benefit more employees, according to the release. McDonald’s will lower the employment eligibility requirements from nine months to 90 days. Weekly shifts also will be reduced to 15 hours from the previous 20-hour minimum requirement. McDonald’s also announced plans to “extend some of those education benefits to restaurant employees’ family members.”
As noted by Nation’s Restaurant News on March 29, 2018:
Driven by President Trump’s corporate tax cut, McDonald’s is tripling its tuition perks for eligible employees as part of a plan to allocate $150 million over five years to help workers further their education.
The Oak Brook, Ill.-based quick-service operator said Thursday it will increase tuition assistance for eligible restaurant workers from $700 to $2,500 a year. Assistance for eligible managers will increase to $3,000 a year, compared with $1,050 under the three-year-old Archways to Opportunity program.
The $150 million “allocation was accelerated by changes in the U.S. tax law,” McDonald’s said.
As noted by the Associated Press on March 29, 2018:
McDonald’s, citing the new U.S. tax law and the tightening job market, is expanding its 3-year-old education benefits program, tripling the amount of money some workers can get each year to help pay for college or trade school tuition.
The fast-food company is also changing its eligibility rules, which it said will double the amount of workers who qualify to 400,000, or about half the people who work at McDonald’s in the U.S.
Kamala Harris corporate tax rate increase will hurt America’s competitiveness
The Kamala Harris-proposed federal corporate tax rate of 28% is higher than the Asia average corporate tax rate of 19.8%, the EU average of 21%, the world average of 23.5%, and the OECD average of 23.7%. (See the Tax Foundation’s comprehensive listing here.)
The Harris federal 28% rate is also higher than Canada (26.2%), the UK (25%) Sweden (20.6%), and even Russia (20%), Afghanistan (20%), and Iraq (15%).
After adding state corporate income taxes, the combined federal-state tax burden in most states will easily exceed 30% under the Harris plan.
The Harris rate hurts the USA vs. China with its 25% rate. And note: Industry sectors of strategic use to the Chinese government pay an even lower rate of 15%.
Visit Kamalanomics.org for updates.
Visit ATR.org/list for tangible examples of TCJA good news.
