Remember when Republicans claimed their tax law would create jobs? Just over a month later, one large employer is using its corporate tax cut to eliminate 5,000 jobs.
Kimberly-Clark, the maker of Huggies and Kleenex, is laying off about 13 percent of its work force and shedding factories worldwide, amid declining birthrates that are affecting diaper sales and a retail price war that is weighing on profits.
Again, that’s 5,000 or more jobs. But how does the Republican tax scam enter into it?
Restructurings typically come with upfront costs for the companies, as they pay workers severance or renegotiate leases. In a conference call with analysts on Tuesday, Kimberly-Clark’s chief financial officer, Maria Henry, said “cash flow benefits” from the Republican tax cut would help fund “the restructuring program over the next few years.” She said the tax savings would also be used to make capital investments and to “allocate significant capital to shareholders.”
So shareholders will get a windfall and workers will get severance.
What an amazing jobs bill that tax plan was!