Ohio Rep.Tim Ryan Wants GM to Explain How It Used GOP Tax Savings

Ohio Democratic Representative Tim Ryan has asked the leaders of the House Ways and Means Committee to hold hearings to investigate how General Motors used its massive savings from the GOP tax law that was passed one year ago.

GM shocked the country on Monday by announcing that it would soon lay off thousands of salaried workers and close up to five North American manufacturing operations.

The announcement angered Ryan whose district includes a plant that is expected to close. So he immediately wrote a letter to Ways and Means Committee Chairman Rep. Kevin Brady of Texas, saying:

“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.”

Ryan also had some choice words for the president:

“Rep. Tim Ryan on GM closings: “This president did not lift 1 finger. He’s got executive time all day, he spends time on Twitter, he does nothing but try to divide the country & start culture wars, & behind the scenes the American worker’s getting screwed.”

GM’s announcement of massive layoffs and closing of plants was blasted by lawmakers in both parties. It was also criticized by Donald Trump who responded by threatening the large automaker.

Democrats have been especially critical of GM for deciding to layoff thousands of workers after Republicans passed tax-cut legislation last year. The main beneficiaries of the tax law change were large corporations such as General Motors, as well as their billionaire shareholders.

The law may have reduced taxes for GM by over $100 million. A central provision of the law was reducing the corporate tax rate from 35 percent to 21 percent.

“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,” Ryan said in his letter.

Ryan also addressed the letter to both the current committee chairman, Brady, as well as next year’s likely chairman, Democratic Rep. Richard Neal of Massachusetts.

Neal said that through his spokesman yesterday that he plans to hold hearings on how the tax law has affected workers and middle-class families. The GM announcement will surely give him more ammunition as he takes aim at the GOP tax scam and exposes the truth about how it has harmed middle class Americans while benefiting the super-rich.