Before Trump signed the GOP tax bill into law, Nobel Prize-winning economist & NY Times columnist, Paul Krugman, warned Americans. In a Twitter thread, Krugman explained how the GOP’s reform depends on the deflated theory of “trickle-down economics,” which erroneously speculates that giving the wealthiest Americans more money will lead to dollars “trickling down” to the lower classes.
So far, a handful of corps has given their employees minuscule bonuses, while most CEOs have decided to reinvest the extra money into the company. The case of Kimberly-Clark Corporation, a multinational group that produces mostly paper-based products, is the perfect example of the GOP tax scam at work.
Kimberly-Clark admins decided to use the extra tax savings to fund their restructuring program. When they say “restructuring,” they mean laying off between 5,000-5,5000 employees, or a roughly 12% decrease in American workers.
Senate Minority Leader Chuck Schumer (D-NY), cited the Kimberly-Clark situation in a speech, saying that the corp’s plan is “evidence that big corporations are not turning their new tax cut into jobs for the middle class.”
Kimberly-Clark Chief Financial Officer Maria Henry is focused on shareholders before employees. She said the plan “provides us flexibility to continue to allocate significant capital to shareholders.”
Kimberly-Clark expects to spend approximately $1.5 billion by 2020 to layoff employees and “restructure” the company. Maybe, the laid-off employees can purchase some stock in the company after getting fired.