Nov 28 2018
Washington, D.C. - Today Congressman Renacci released a statement on General Motors announcement to cut thousands of jobs:
The GM Lordstown Plant is the heart and soul of the Mahoning Valley community, employing more than 1,500 hardworking Ohioans and helping to employ thousands more throughout the state of Ohio. My heart breaks for the lives that will be impacted by this decision and the difficult choices that families across the Mahoning Valley will have to make in the coming months. It is my hope that GM will choose a different path and ensure that new production takes place at the Lordstown plant, utilizing the hardworking men and women who have dedicated their lives to GM over the years. Ohioans are the best and hardest workers the country has to offer, and quite frankly, the impacted employees deserve so much better from GM. I will continue to work with my colleagues in Congress to pressure GM to change course.
This week, I have been discouraged to hear politicians try to use this horrible news as a political tool. But any politician that says that the Tax Cut and Jobs Bill benefitted GM does not understand the tax law. Due to GM’s loss carry forward, no amount of tax cuts would reduce their tax liability. It's frustrating that opponents of the tax bill also continue to falsely claim that provisions in that legislation impacted this week’s decision. It is important to remember that under the old tax law, U.S. corporations were generally not taxed on profits earned overseas until they brought those profits back into the United States. Now, thanks to a new provision, they’re paying 10.5%. That’s revenue that was generally not getting taxed under the old law.
Anyone pointing toward this does not understand the tax code and are focusing on unsubstantiated claims. We should be focusing on the fact that after taking billions, GM’s announcement is a slap in the face to the people of Ohio. GM should be required to pay those dollars back for moving jobs to Mexico. The conversation needs to be focused on the government-sponsored bankruptcy of 2008 that bailed out a company who is now moving jobs overseas. Congress should be working together today with the President to get those dollars back.