Though the New York Times editorial board dismissed the Republican tax bill as “crumbs” for most people, the paper admitted its tax bill dropped by half thanks to the legislation.
The New York Times Co. in its first quarter 2018 financial report stated its income tax expense liability dropped from $10.7 million during the same period in 2017 to $5.3 million this year.
“The decrease was primarily due to a reduction in the U.S. federal corporate income tax rate which took effect in 2018, and a tax benefit from stock-based compensation,” according to the report.
The Gray Lady announced a profit for the first quarter of $34.1 million, which was an increase of over $6 million from the same period in 2017.
In an op-ed in February, The New York Times editorial board derided the Republican tax bill, saying it is mainly a boon for wealthy investors.
Employing the same infamous language as House Minority Leader Nancy Pelosi, the editors wrote, “Republicans designed the law to principally benefit wealthy families while offering crumbs to low-income and middle-income families.”
Two provisions in the Tax Cuts and Jobs Act passed in December aimed directly at low and middle income families are nearly doubling the standard deduction and doubling the child tax credit, meaning millions of working families will have no income tax liability at all for 2018. In fact, many will receive a net payment back from the federal government.
The Times also argued only a “small sliver of money will find its way into paychecks of rank-and-file employees” from the corporate income tax being cut from 35 percent (the highest in the industrialized world) to 21 percent.
President Donald Trump and House Speaker Paul Ryan both indicated they were surprised when companies started announcing bonuses and pay raises after the law passed.
Trump said they knew “a lot of good things” would happen in terms of economic growth and job creation by making the U.S. tax environment more competitive on the world stage and lowering individual Americans’ tax rates across the board.
Companies that make higher profits, like The Times did this year, can hire more workers, increase workers’ salaries, and invest in ways that create jobs for other businesses.
AT&T was among the first corporations to announce a $1,000 bonus for each of its employees. At least 500 more companies have announced bonuses, pay raises and other benefit increases since.
In January, Apple revealed plans to invest $350 billion in the U.S. economy, create 20,000 new jobs and open a new campus over the next five years, due to the new tax environment.
Trump has not been shy about touting the nation’s strong economy, pointing out on multiple occasions the all-time record lows in the unemployment rate for African Americans and Hispanics, as well as an 18-year low for the unemployment rate for women.
The jobless rate overall dropped to 3.9 percent this week, marking the lowest level since Bill Clinton was president.
Additionally, consumer confidence increased in April keeping near a 17-year-high hit earlier this year.
Further, small business owner confidence remained near an all-time high of 61 on the index during the month, down just slightly from the 62 rating achieved during the first quarter of this year.
Even The Times ran a piece in January noting “the Trump effect,” recognizing “a wave optimism has swept over American business leaders” thanks to the new tax and regulatory climate ushered in by the nation’s 45th president.
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