Union Demands Large Wage Increase if Corporate Tax Rate Is Cut

December 01, 2017

In what may be the beginning of a trend that could spark social media campaigns targeting other large employers, the Communications Workers of America sent letters to eight companies asking them to guarantee a $4,000 pay raise for every bargaining-unit employee if Congress lowers the corporate tax rate to 20 percent.  The letter, which cites a White House report by the Council of Economic Advisors and tax cut proponents, also calls for the companies to "ensure that the [tax] bill's treatment of overseas profits will not result in domestic job loss."  According to the letter, the tax bill would set the tax rate for profits earned at overseas operations to zero, with some exceptions, which would incentivize companies to shift work abroad.  The letter concludes with what could become a future social media warning for the C-Suite: "Whether the corporate tax rate cut will in fact trickle down to workers or whether the tax structure for offshore profits will in fact encourage offshoring are matters entirely within your control, at least with respect to your own workforce."