The new Republican tax law will help settle a long-standing debate between liberals and conservatives. Liberals argue that while lower taxes are good for the stock market, workers get the short end of the stick.
If corporations sit on their extra earnings, then the Trump push to lower taxes will be a 1%-enriching farce.
Several corporations rushed to try to reassure American workers, giving out holiday bonuses, or raising their company-wide minimum wage in support of the tax cut.
But now we know at least one major company was doing it to cover its tracks.
Per reports, AT&T plans to lay off and fire more than a thousand workers starting early in 2018.
600 Midwestern workers were told they were being laid off by the company as much as a week before AT&T announced the “Trump bonus” gimmick.
The same ploy was also being used to “butter up” for the President, who has the future of the tech giant in his hands to some extent.
A corporate spokesman told the Chicago Tribune that AT&T isn’t prepared to say what its workforce will look like in 2018. The New York Post also reported that the company “pink-slipped more than 700 DirecTV home installers.”
Newsweek captures the angry union sentiment and the political climate around AT&T:
“How can you lay people off and then give them $1,000 and say that there’s going to be more jobs available? I wish someone could tell me how that’s possible because I have to explain that to my members, and right now at this time of year, this is a difficult pill to swallow,” Joseph Blanco, president of Local 6360 Communication Workers of America Union in Kansas City, told Fox 4 on Thursday.
As reported by Reuters, AT&T is vying to acquire media conglomerate Time Warner Inc., but the Justice Department sued to prevent the $85.4 billion acquisition in November for fears that AT&T might charge rival networks “hundreds of millions of dollars more per year” for Time Warner’s catalog of movies and T.V. channels if the merger would stand.
And Twitter didn’t miss its chance to knock the President.
AT&T: We are giving all our workers a $1K bonus!
TRUMP: See, I told you, my corporate tax cut is working!!!
[3 days later]
AT&T: Oh yeah, and we are also laying off 1,000+ workers. And probably a lot more next year
TRUMP: [Out golfing]https://t.co/gNhxd4ZT7h
— Judd Legum (@JuddLegum) December 27, 2017