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Sun Jun 16, 2019, 07:45 PM

Bosses pocket Trump tax windfall as workers see job promises vanish

Stephen Smith worked at an AT&T call center in Meriden, Connecticut, for over 20 years before the giant telecoms company announced it was closing the cityís three call centers in February 2019.

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AT&Tís CEO, Randall Stephenson, promised in November 2017 to invest $1bn in capital expenditure and create 7,000 new jobs at the company if Trumpís hugely controversial tax cut bill passed. Many opponents had slammed the cuts as a corporate giveaway that benefited the super-rich. But big firms lobbied for it, saying Ė as AT&T did Ė that it would fund job-creating expansions.

The bill was voted into law in December 2017, reducing the corporate tax rate from 35% to 21%. AT&Tís benefit was a tax windfall of $21bn and an additional estimated $3bn annually. But instead of creating jobs and increasing investment into the company, AT&T has eliminated 23,328 jobs since the tax cut bill was passed, according to a recent report by the Communications Workers of America. The CWA also said AT&T reduced their capital investments by $1.4bn.

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AT&T is among several large corporations whose CEOs announced support of the Trump tax cut bill by claiming if the legislation passed, their companies would ensure workers reaped benefits from it. But a report published on 22 May by the Congressional Research Service, a non-partisan thinktank for members of Congress, found the tax cuts did not significantly affect the economy or boost wages, but benefited investors more than anyone else.

link
https://www.theguardian.com/business/2019/jun/15/job-losses-trump-tax-cut-at-t-general-motors-wells-fargo

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