GM Cutting Workforce, Closing Factories After Getting $514 Million Windfall from GOP Tax Law
WASHINGTON - Today, General Motors announced that it would cut 15 percent of its salaried workforce and close production facilities in three states to “increase the long-term profit and cash generation" of the company.
Yet, the company received more than $514 million in tax savings in 2018 after Republicans slashed corporate taxes by 40 percent with their tax law.
In response to the announcement, Not One Penny spokesperson Ryan Thomas released the following statement:
“General Motors’ decision to gut its workforce epitomizes the bad corporate behavior Republicans in Congress have incentivized for generations. Instead of using its massive tax savings to increase employee wages or invest in its workforce, GM is shuttering plants and cutting jobs to increase profits and further enrich shareholders.
“Workers in Maryland, Michigan, and Ohio are already paying too high a price for Republicans’ corruption and corporations’ greed. Now, as drug prices skyrocket and the cost of health care premiums surge, thousands of people across the country will find themselves unemployed and with fewer social safety nets available—even as the rich get richer from the GOP’s tax law.
“The American people will not forget that Republicans in Congress permitted these morally reprehensible and irresponsible actions.”
Additional Background on GM:
- General Motors reported $6 billion in income and a tax cut of $514 million in the first three quarters of 2018.
- GM CEO Mary Barra received $22 million in compensation in 2017—or 295 times more than the median GM employee salary.
- So far in 2018, General Motors has spent $100 million enriching its shareholders by purchasing back its own stock.
- It has previously announced buyouts for 18,000 employees.
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