WASHINGTON, DC – As President Trump heads to Cleveland, Ohio this weekend to tout recent corporate tax cuts, U.S. Senator Sherrod Brown (D-OH) today is calling on the President to join him in urging General Motors to use their massive windfall from recent tax cuts to keep jobs in Ohio.
Brown’s calls come after a USA Today article published last month found that tax cut savings are not flowing to American workers as promised after passage of the GOP tax bill. In fact, reports show the tax cuts have gone to shareholders over workers by a margin of 3-to-1. According to a recent CNBC report, companies dedicated $305 billion to share buybacks and cash mergers compared with $131 billion in wage growth in the first quarter of 2018.
“I hope President Trump will join me in calling on GM to save these jobs when he is in Ohio tomorrow,” said Brown. “GM is getting billions in tax cuts. They can write off the entire cost of retooling the plant to save these jobs and meet market demands in the same year they make the investment. There’s no excuse for them not to do it.”
In April, GM announced plans to lay off 1,500 Ohioans at the Chevy Cruze plant in Lordstown, and eliminate potentially hundreds of additional auto supply chain jobs across Ohio. After the GOP tax overhaul, GM is able to bring their $6.9 billion in overseas cash back to the U.S. at less than half of the tax rate the corporation would formerly have paid and immediately deduct the cost of any new investments in plant and equipment. Despite these tax cuts and the company’s record revenues as reported in their 2016 SEC filing, GM is still moving forward with these layoffs.
Brown has demanded answers from GM, arguing that Ohioans deserve answers as to why the Lordstown plant is cutting jobs despite having more cash on hand following the GOP tax cuts. Brown said GM cannot pocket billions of dollars in tax cuts and turn around and fire Ohio workers whose livelihoods depend on these jobs.