Christmas got here early for Big Telecom this yr. Along with the repeal of web neutrality by the Federal Communications Commission, these corporations may even obtain among the greatest tax breaks below the brand new GOP laws. Oh, and lots of of them are elevating costs for purchasers too.
Republicans in Congress handed their first main piece of laws this week: an enormous overhaul of the tax code that can almost certainly be authorized by the President by the top of the week. It’s already well-known that the wildly unpopular invoice offers a a lot larger break to the rich and companies (versus America’s lowest-income teams, who will see a lower than half a p.c tax break). But what might need been misplaced within the avalanche of protection is the truth that among the corporations getting the largest breaks are Big Telecom companies.
AT&T, which presently has a tax fee of 32.7 p.c, will see its tax fee drop to 21 p.c below the brand new tax invoice’s company tax most. Likewise, Verizon will see its tax fee drop from the present 35 p.c. When you’re speaking about multi-billion greenback corporations, tax cuts of 12 or 14 p.c equal lots of dough.
Read extra: Here’s a List of the Members of Congress Who Told Ajit Pai to Repeal Net Neutrality
Both AT&T and Verizon tried to spin their impending windfall by saying they’ll give out $1,000 one-time bonuses to a few of their workers, however that pales compared to the ton of cash the companies will get to maintain. That mentioned, the union representing AT&T’s workers informed The Daily Beast that they had been already in talks to offer holidays bonuses this yr. (Oh, and AT&T, on the identical time, laid off a whole bunch of workers.)
Broadband corporations proceed to be wildly worthwhile, with Comcast and Verizon beating Wall Street projections and AT&T coming near matching them.
Meanwhile, although it’s good just a few hundred thousand workers will get a bit of deal with, customers are getting hit, with a number of telecom corporations saying fee will increase this week. A Comcast spokesperson informed me on common, nationally, buyer payments will improve by 2.2 p.c subsequent yr. DirectTV has additionally introduced value will increase, and clients with Frontier and Dish have reported notices of elevated charges, too.
Perhaps the concept is which you can take your 0.4 p.c tax break and put it in direction of the 2 p.c improve in your web invoice?
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