Report: Corporate Tax Cuts Boost CEO Pay, Not Jobs

House Speaker Paul Ryan is proposing to cut the statutory federal corporate tax rate from 35 to 20 percent. President Trump wants to slash the rate even further, to just 15 percent. Their core argument? Lowering the tax burden will lead to more and better jobs.

To investigate this claim, this report is the first to analyze the job creation records of the 92 publicly held U.S. corporations that reported a U.S. profit every year from 2008 through 2015 and paid less than 20 percent of these earnings in federal income tax. Did these reduced tax rates actually lead to greater employment within the 92 firms? The data we have compiled give a definitive — and sobering — answer.

Key findings: 

Tax breaks did not spur job creation

  • America’s 92 most consistently profitable tax-dodging firms registered median jobgrowth of negative 1 percent between 2008 and 2016. The job growth rate over those same years among U.S. private sector firms as a whole: 6 percent.
  • More than half of the 92 tax-avoiders, 48 firms in all, eliminated jobs between 2008 and 2016, downsizing by a combined total of 483,000 positions.

Tax-dodging corporations paid their CEOs more than other big firms

  • Average CEO pay among the 92 firms rose 18 percent, to $ 13.4 million in real terms, between 2008 and 2016, compared to a 13 percent increase among S&P 500 CEOs. U.S. private sector worker pay increased by only 4 percent during this period.
  • CEOs at the 48 job-slashing companies within our 92-firm sample pocketed even larger paychecks. In 2016 they made $ 14.9 million on average, 14 percent more than the $ 13.1 million for typical S&P 500 CEOs.

Job-cutting firms spent tax savings on buybacks, which inflated CEO pay

  • Many of the firms in our sample funneled tax savings into stock buybacks, a financial maneuver that inflates the value of executive stock-based pay. On average, the top 10 job-cutters in our sample each spent $ 45 billion over the last nine years repurchasing their own stock, six times as much as the S&P 500 corporate average.

ExxonMobil hiked CEO Tillerson’s pay while dodging taxes, slashing jobs

  • The oil giant paid an effective tax rate of only 13.6 percent during the 2008-2015 period, at the same time cutting more than a third of its global workforce (the company does not reveal U.S. jobs data). After pumping nearly $ 146 billion into stock buybacks, Exxon CEO Rex Tillerson, now the U.S. secretary of state, took home $ 27.4 million in total compensation in 2016, 22 percent more than he collected in 2008.

AT&T is the top job-cutter among the tax-dodging firms

  • The telecommunications giant managed to get away with an effective tax rate of just 8.1 percent over the 2008-2015 period, while cutting more jobs than any other firm in our sample. After accounting for acquisitions and spinoffs, the firm had nearly 80,000 fewer employees in 2016 than in 2008. Instead of job-preserving investments, the firm shoveled profits into stock buybacks ($ 34 billion over the past nine years) and CEO pay. AT&T chief Randall Stephenson pulled in $ 28.4 million in 2016, more than double his 2008 payout.

GE cut jobs while funneling offshore tax-dodging proceeds into CEO pay and buybacks

  • Through extensive use of overseas tax havens, General Electric achieved a negative effective tax rate during the 2008-2015 period, meaning the firm got more back from Uncle Sam than it paid into federal coffers. The company spent $ 42 billion repurchasing its own stock, which helped boost CEO Jeffrey Immelt’s pay to nearly $ 18 million in 2016. Meanwhile, the company’s employee count dropped by about 14,700 over the past nine years.

Read the full report here [PDF].
Find shareable graphics here.
Explore all Executive Excess reports from 1994 onward.

|||||||http://feedproxy.google.com/~r/IPS/latest/~3/OHy6qg0r1T0/

New Report Finds Corporate Tax Cuts Boost CEO Pay, Not Jobs

FOR IMMEDIATE RELEASE

Full report and graphics

Washington, D.C. — When President Donald Trump launches his tax cut campaign today in Missouri, he will no doubt repeat the Republican mantra that slashing the corporate tax rate will lead to more and better jobs. He has proposed cutting the statutory federal corporate tax rate from 35 to 15 percent, while House Speaker Paul Ryan has called for a 20 percent rate.

To investigate this jobs claim, the Institute for Policy Studies has analyzed the employment records of the 92 publicly held U.S. corporations that exploited loopholes to pay less than a 20 percent effective U.S. tax rate from 2008 through 2015, despite making a profit every year.

Key findings: 

Tax breaks did not spur job creation

  • America’s 92 most consistently profitable tax-dodging firms registered median jobgrowth of negative 1 percent between 2008 and 2016. The job growth rate over those same years among U.S. private sector firms as a whole: 6 percent.
  • More than half of the 92 tax-avoiders, 48 firms in all, eliminatedjobs between 2008 and 2016, downsizing by a combined total of 483,000 positions.

Tax-dodging corporations paid their CEOs more than other big firms

  • Average CEO pay among the 92 firms rose 18 percent, to $ 13.4 million in real terms, between 2008 and 2016, compared to a 13 percent increase among S&P 500 CEOs. U.S. private sector worker pay increased by only 4 percent during this period.
  • CEOs at the 48 job-slashing companies within our 92-firm sample pocketed even larger paychecks. In 2016 they made $ 14.9 million on average, 14 percent more than the $ 13.1 million for typical S&P 500 CEOs.

Job-cutting firms spent tax savings on buybacks, which inflated CEO pay

  • Many of the firms in our sample funneled tax savings into stock buybacks, a financial maneuver that inflates the value of executive stock-based pay. On average, the top 10 job-cutters in our sample each spent $ 45 billion over the last nine years repurchasing their own stock, six times as much as the S&P 500 corporate average.

ExxonMobil hiked CEO Tillerson’s pay while dodging taxes, slashing jobs

  • The oil giant paid an effective tax rate of only 13.6 percent during the 2008-2015 period, at the same time cutting more than a third of its global workforce (the company does not reveal U.S. jobs data). After pumping nearly $ 146 billion into stock buybacks, Exxon CEO Rex Tillerson, now the U.S. secretary of state, took home $ 27.4 million in total compensation in 2016, 22 percent more than he collected in 2008.

AT&T is the top job-cutter among the tax-dodging firms

  • The telecommunications giant managed to get away with an effective tax rate of just 8.1 percent over the 2008-2015 period, while cutting more jobs than any other firm in our sample. After accounting for acquisitions and spinoffs, the firm had nearly 80,000 fewer employees in 2016 than in 2008. Instead of job-preserving investments, the firm shoveled profits into stock buybacks ($ 34 billion over the past nine years) and CEO pay. AT&T chief Randall Stephenson pulled in $ 28.4 million in 2016, more than double his 2008 payout.

GE cut jobs while funneling offshore tax-dodging proceeds into CEO pay and buybacks

  • Through extensive use of overseas tax havens, General Electric achieved a negativeeffective tax rate during the 2008-2015 period, meaning the firm got more back from Uncle Sam than it paid into federal coffers. The company spent $ 42 billion repurchasing its own stock, which helped boost CEO Jeffrey Immelt’s pay to nearly $ 18 million in 2016. Meanwhile, the company’s employee count dropped by about 14,700 over the past nine years.

“CEOs have used the proceeds from tax savings to enrich themselves at the expense of job-creating investments,” notes report author Sarah Anderson. “The debate over corporate taxes should focus on ensuring that the corporations these CEOs run pay their full and fair share.”

This 24th edition of the annual IPS Executive Excess series also includes the most comprehensive available catalog of CEO pay reforms, including proposed legislation to eliminate the CEO bonus loophole.

Full report and graphics.

About the lead author: Sarah Anderson directs the Global Economy Project at the Institute for Policy Studies and co-edits the IPS web site Inequality.org. She has been the lead author on all 24 of the Institute’s annual Executive Excess reports. Her executive compensation analysis has been featured recently in the New York TimesFortune, and the Los Angeles Times.

More Information:

Sarah Anderson, sarah@ips-dc.org(202) 787 5227
Domenica Ghanem, press@ips-dc.org(202) 787-5205
Jessica Pierre, jessicah@ips-dc.org

The Institute for Policy Studies (IPS-DC.org) is a multi-issue research center that has conducted path-breaking research on executive compensation for more than 20 years. IPS also provides a constant stream of inequality analysis and solutions through our Inequality.org web site and weekly newsletter.

# # #

|||||||http://feedproxy.google.com/~r/IPS/latest/~3/VKy3cGi-RDg/

It’s a Myth That Corporate Tax Cuts Mean More Jobs

corporate-taxes-job-cuts

Photo: Shutterstock

“The arithmetic for us is simple,” AT&T’s chief executive, Randall Stephenson, said on CNBC in May. If Congress were to cut the 35 percent tax on corporate profits to 20 percent, he declared, “I know exactly what AT&T would do — we’d invest more” in the United States.

Every $ 1 billion in tax savings would create 7,000 well-paying jobs, Mr. Stephenson went on to say. The correlation between lower corporate taxes and more jobs, he assured viewers, runs “very, very tight.”

As Congress prepares to take up tax legislation this fall, including an effort to reduce the corporate tax rate, this bold jobs claim merits examination. Notably, it comes from the chief executive of a company that’s already paying comparatively little in federal taxes.

According to the Institute on Taxation and Economic Policy, AT&T enjoyed an effective tax rate of just 8 percent between 2008 and 2015, despite recording a profit in the United States each year, by exploiting tax breaks and loopholes. (The company argues that it pays significant taxes, at a rate close to 34 percent in recent years, but that includes deferred taxes and state and local levies.)

Read the full article on the New York Times’ website.

|||||||http://feedproxy.google.com/~r/IPS/latest/~3/oIiWYWbdebo/

Automation kills jobs and brings mass poverty. Call that progress?

robot-welding-automation-factory

(Photo: Factory_Easy / Shutterstock)

Throughout America’s small towns and suburbs, you can see the ominous markers of a coming sea change. Empty storefronts. Gutted strip malls. Vacant shopping complexes.

Indeed, nothing captures America’s perverse economic picture better than the transformation happening in the retail sector. Brick-and-mortar retailers are hemorrhaging jobs: 90,000 since last October. That’s 15,000 lost jobs per month.

Meanwhile, Jeff Bezos, the founder of online retailer Amazon, has become the nation’s second richest man—and a virtual lock to be No. 1 within a few years, if not months. Bezos’s wealth has tripled in just over two years, a tidy $ 50 billion increase. That’s over $ 1.5 billion per month.

It’s the real-life embodiment of a Tom Tomorrow cartoon I saw years ago: the One Rich Guy Who Owns Everything. “Over the years, income inequality continued to rise,” the comic begins, “until finally, one rich guy owned as much as the rest of the planet combined.”

The strip was meant to be an extrapolation of wealth inequality to its most absurdly concentrated point. It was satire. But the more absurd thing is that we’re actually trending in that direction.

|||||||http://feedproxy.google.com/~r/IPS/latest/~3/cDYYBcqlwj0/

Jobs and Trade on the Campaign Trail – New York Times


New York Times
Jobs and Trade on the Campaign Trail
New York Times
Recent economic research shows that workers who live near manufacturing hubs in Midwestern states like Ohio and Michigan have suffered high unemployment and low wages because of the transfer of manufacturing in the last 20 years, principally to

and more »

|||||||http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNHupdEr0kAq78O0M-oCK_BCVv9BDA&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52779073498893&ei=kxoAV6i6BIiLhAHLk4PwAQ&url=http://www.nytimes.com/2016/04/03/opinion/sunday/jobs-and-trade-on-the-campaign-trail.html

Why it would be tough for Trump to bring jobs back from China – WSBT-TV


WSBT-TV
Why it would be tough for Trump to bring jobs back from China
WSBT-TV
While employment in the sector may grow somewhat, the nation won't regain its status as a manufacturing center, said David Autor, an MIT economics professor who co-authored the study with Hanson. Many of the jobs lost were in factories that made toys, …

and more »

|||||||http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNH6fcmZBb8QBuD2636Mq_o54wpULA&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52779046189093&ei=Yo-_VtjrGMeHwQH2w4GAAQ&url=http://www.wsbt.com/news/business/why-it-would-be-tough-for-trump-to-bring-jobs-back-from-china/37965008

NT salt mine will mean 350 jobs – NT News

NT salt mine will mean 350 jobs
NT News
Mr van der Merwe said Tellus would establish a training program to skill local Aboriginal workers and aimed to exceed the 10 per cent target in time. The mined salt will travel by rail to Darwin and be shipped from the port to mostly Asian countries.

and more »

|||||||http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNHOdQaYVZZS1MZQueVjvM12sfz5Wg&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52778974233024&ei=vAYsVqD4DOqQwAGfpoT4Cg&url=http://www.ntnews.com.au/business/nt-salt-mine-will-mean-350-jobs/story-fnk2tq5v-1227576283001

Study: Bird flu costs $427 million, 8500 jobs – Pilot Tribune


Pilot Tribune
Study: Bird flu costs $ 427 million, 8500 jobs
Pilot Tribune
The avian flu outbreak, which forced the depopulation of 34 million birds on 77 Iowa farms, won't just raise the price for eggs and poultry for up to the next three years; it also is costing the nation's largest egg-producing state nearly 8,500 jobs

and more »

|||||||http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNFkLcAgktAjoWhC7G26mSIPX-1XUA&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52778930945806&ei=JJ3YVfG_JMW0wAH0q4DADw&url=http://www.stormlakepilottribune.com/story/2223574.html

Looking Beyond the Headlines on Black Jobs and Workers in America

black worker holds hand drill

(Image: Flickr / The Library of Congress)

From recent numbers, we learned that the unemployment rate for African Americans fell to single digits (9.6 percent) for April 2015. This is the lowest rate in nearly seven years, and the lowest of the Obama presidency.

Some in the media have touted this as a great success. In reality, this good news masks a much larger and historic problem facing African Americans and the workforce. Despite the improvement, the African American jobless rate is still double the unemployment rate of white workers, which has remained consistent since February at 4.7 percent. In fact, since the 1960s, the black unemployment rate has ranged from 2 to 2.5 times the rate for whites.

This harsh historical reality that gets buried in the day-to-day headlines has led some prominent black economists from across the country to label the job situation for blacks in the U.S. a crisis. Algernon Austin, one of those economists, states the situation succinctly “African American communities face a chronic and severe crisis of people who want to work but cannot find jobs.”

If one looks only at individuals with a bachelor’s degree, the black unemployment rate still approaches twice that of the white unemployment rate. One reason? Because individual effort on the part of black workers cannot change the minds of the remaining discriminatory employers. Given the structural barriers that remain to the entry of African Americans into the workforce, Austin concludes, “Bringing equal opportunity to blacks in terms of the relative number of jobs will demand a strong national commitment to creating jobs for black workers.”

But as with many crises there is great opportunity. Two new reports released in May (#BlackWorkersMatter and And Still I Rise: Black Women Labor Leaders’ Voices, Power and Promise) shed a great light on the opportunities for black workers to collectively take a much stronger hold of their own economic destinies, organize into unions, and seek to reverse these trends and improve all economic indicators — not just for themselves, but for all Americans.

The plight of African American workers in today’s changing economy should be of great concern to all moderate and progressive institutions. Workers of color have been particularly hard hit by the rising tide of inequality. Among the most important things that black workers need to survive and grow in today’s economy are targeted racial and economic justice programs and projects designed to foster, expand and support opportunities for black-worker organizing and collective action.

The potential for black workers to help rejuvenate the U.S. labor movement and transform it into the ultimate working class and civil rights vehicle is enormous. Just as in the 1960s, today, a new, bold generation of young black leaders, many of them women, is emerging. And, even in these extremely difficult times for organizing, we can see some encouraging signs of their success.

While not in the context of labor organizing, the explosion of protests and activism coming out of Ferguson, Baltimore and cities like it can also be seen as amazingly encouraging. It is remarkable that with so few resources, largely young, low-income African Americans have succeeded in sparking a national conversation about racial justice and the historic economic disparities that stem back to the very founding of this nation.

#BlackWorkersMatter offers a comprehensive picture of the status of both black workers and the struggle for economic opportunity for African Americans. The first and longest section of the report focuses on black worker organizing, its history, and the challenges it faces, relying heavily on interviews with activists and leaders prominent in the worker organizing field.

It is followed by four sections that address various aspects of the black jobs crisis, its causes, its effects and the potential for black worker organizing to provide a path to its resolution. The final section of #BlackWorkersMatter provides recommendations to expand black worker power and opportunity.

And Still I Rise: Black Women Labor Leaders’ Voices, Power and Promiseis the flagship report of the Institute for Policy Studies new Black Worker Initiative. The report profiles 27 amazing black women activists from across the country who are in different stages of their careers and work in a range of different sectors. The report also features the results of a national survey of more than 450 black women in the labor movement about their experiences.

The main purpose of the report is two-fold:

– To stimulate investment in organizing black women because they are the most receptive group of workers to forming unions and have the highest union election win rate of any other group (nearly 90 percent when organized by other women of color);

– To bring the expertise of black women more fully to bear in strategies to advance economic justice within organized labor and the broader civil rights and progressive movement.

What is needed today is a bold investment in opportunities for black workers and the communities in which they reside. Organizations such as labor unions and the civil rights groups need to take up the economic justice mantle even stronger today than in days past. Race matters and diversity, equity and inclusion must truly prevail in all its public and private thinking and action. The final story on jobs has yet to be written but with bold action we can all have our voices heard in the narrative.

The post Looking Beyond the Headlines on Black Jobs and Workers in America appeared first on Institute for Policy Studies.

Marc Bayard is an associate fellow and the director of the Black Worker Initiative at the Institute for Policy Studies.

|||||||http://feedproxy.google.com/~r/IPS/latest/~3/3vPT5hzvvs4/

Nike says it will create 10000 US jobs if trade deal passes – KYTX


KYTX
Nike says it will create 10000 US jobs if trade deal passes
KYTX
… from reality President Obama is when it comes to TPP," said Murshed Zaheed of Credo Action, a progressive activist group. "The symbolism of his speech is staggering — the Nike brand was built by outsourcing manufacturing to sweatshops in Asia." …

and more »

|||||||http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNEEcn-DMiCZTXTweZYMPfeoXgrjtA&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52778832287713&ei=hcNOVaitMq3DwAHAh4H4CA&url=http://www.cbs19.tv/story/29016402/nike-says-it-will-create-10000-us-jobs-if-trade-deal-passes