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Congressman Tim Ryan

Representing the 13th District of Ohio

Congressman Tim Ryan Calls For Congressional Hearings on GM Tax Cuts

November 26, 2018
Press Release

Washington, DC – Congressman Tim Ryan (OH-13) today called for Congressional hearings to look into how General Motors (GM) utilized millions of dollars in tax cuts. This comes in the wake of GM’s announcement that they are laying off 14,700 workers and closing 5 facilities across North America. GM’s plant in Lordstown, Ohio is among those impacted, which will result in the loss of 1,618 jobs once the closure begins in March of 2019. In a letter written to Representatives Kevin Brady (R-TX) and Richard Neal (D-MA) -- Chairman and Ranking Member of the House Ways and Means Committee –  Ryan called on Congress to hold public hearings into how the corporate leadership of GM used their windfall from the massive tax reform bill passed last year.

“It is squarely within the oversight responsibility of the House Ways and Means Committee to investigate the outcome of this corporate tax handout.  I strongly urge the Committee to hold hearings where GM and other corporations who have laid off workers since the passage of the tax break are called to testify regarding tax breaks they received and how this money was spent.  The American people deserve to know if the tax cuts they paid for are being used to inflate corporate profits at the expense of their economic security and the survival of American workers,” read the letter.

You can read the full text of the letter below, and here:

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November 26, 2018

Dear Chairman Brady and Ranking Member Neal:

The Honorable Kevin Brady
Chairman
House Committee on Ways and Means
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Richard Neal
Ranking Member
House Committee on Ways and Means
1102 Longworth House Office Building
Washington, D.C. 20515

As you well know, Congress passed a sweeping overhaul of the U.S. tax code in December 2017.  Although corporations were already making record profits, the Tax Cuts and Jobs Act included a massive cut to the corporate tax rate from 35 percent to 21 percent.  Among the corporations to benefit from this cut was General Motors (GM). While President Trump and the Republican-led Congress promised the $1 trillion corporate tax cut would trickle-down to the average worker, we know instead that many corporations have used the tax cut to buy back their stock and increase CEO bonuses. Now today, GM announced plans to lay off 15 percent of salaried workers—nearly 14,000 jobs—and halt production at five North American plants by 2019. 

One of these five plants, GM Lordstown, is in my Congressional District.  The indefinite shutdown of the Lordstown facility will leave roughly 1,618 employees without jobs, the latest blow to a community that has seen more than 3,000 jobs eliminated by GM over the last two years.  The impact of the Lordstown closure on its workers, the local community, and the entire Northeast Ohio region is nothing short of devastating.

It is squarely within the oversight responsibility of the House Ways and Means Committee to investigate the outcome of this corporate tax handout.  I strongly urge the Committee to hold hearings where GM and other corporations who have laid off workers since the passage of the tax break are called to testify regarding tax breaks they received and how this money was spent.  The American people deserve to know if the tax cuts they paid for are being used to inflate corporate profits at the expense of their economic security and the survival of American workers.

Thank you for your consideration.  I look forward to hearing from you soon.

Sincerely,


Tim Ryan
Member of Congress