This is hilarious. COSTCO has reaped a huge windfall because of the Trump tax plan. They’ve announced, almost militantly, that they are going to “put the money back into its employees.” They say it like they’re going to show the world what’s the right thing to with “greedy profits.”
Then they go on to explain a rudimentary conservative economic theory, as if it’s a revelation they need to share:
The company’s effective tax rate for its fiscal second quarter, which straddled the calendar year, was 27.7 percent, said chief financial officer Richard Galanti in a conference call Wednesday afternoon. That’s down from 35.6 percent during the same quarter of its 2017 fiscal year.
“Some will fall to bottom line, yes,” he said. “We also take care of our employees.”
~~~~~~~~~
Wait, tax savings are going to be used to pay employees more AND lower prices? That might sound like a company is losing profits, but read what COSTCO figured out all on their own. This crazy gambit will attract more customers which will ultimately lead to greater profits!
But, but we were told the leftist model works best-
Raise taxes on businesses while forcing them to pay employees $15 an hour, which drives businesses away, which ultimately blights an area, forcing people to go on welfare in an area where the tax base is eroding daily.
THAT’S the superior economic policy, and it’s the one the left is going to run on against Trump in 2020.
ht/ jd hasty
Thread hijack alert: https://truepundit.com/senate-officials-confirm-john-mccain-expected-step-u-s-senate/
oh, please, please, please, please, please ….. ad infinitum
Welcome to reality you stupid commie’s
I worked for Costco for over 9 years. It was the best job I ever had and one of the best run companies in the world. They already pay their employees buckets more than anyone else. As much as I love you iotwreport, this post is picking on the wrong company.
Story is solid.
The Brotmans are huge lefties. They do not support Trump.
Jim Sinegal was a huge supporter of Obama.
No one is saying the company isn’t good.
What we’re saying is that they do not support right-wing candidates and have the temerity to explain in an interview how they are going to take their tax cuts and pay the employees and cut prices, “which in the long run will reap more profits.”
SO WHY DID THEY SUPPORT OBAMA??????
Why do they not speak out against cities that force the rise of minimum wages while raising taxes on businesses?
Why are they not champions of this great system they are describing in this story?
Why are they not praising Trump??
Adrienne, IMHO iotw isn’t picking on COSTCO, it’s pointing out that the (self proclaimed) lefty COSTCO is against conservative economics and Trumpism but is joyous over the results of such.
My first thought on this was that means the lines will be longer and the parking lots will be fuller now at Costco. Ugh!
Ooh and Costco is the first one to figure this out! Wow!
Okay okay maybe they copied the first 300 companies that figured it out, but bless their hearts nonetheless. Lol.
Notorious lefties. They never give credit where it’s due anyway.
I dont see any slamming of costco in the post except for their progradtism. Maybe Read it again without your costco blinders.
Why does Costco support Obama, and by extension leftist policies? Market share and barriers to entry. Lowering the costs of business and eliminating regulation is not how the mega companies keep start-ups from, well, starting up. Paying employees more and lowering prices due to tax cuts is not really what mega-companies want to do; they want the government to mandate a high minimum wage (which they can afford), but due to tax cuts they pay employees more because they want good employees, and they will lower prices to keep their market share.
There’s no greed like leftist greed.
What Wyatt and Fur said.
Like Ocommie, one of the Costco big wigs is a rump ranger. That’s why they support the treasonous gay Kenyan commie.
I just want the CEO to show up on CNBC and talk about how the COSTCO engine is revving up because of Trump policy, and then explain that forced minimum wages and high taxes is the exact opposite of what works. You have to lower taxes so businesses can pay employees more and in turn prices can stabilize, or even lower. Everyone wins… including the government, who will end up collecting more taxes because the economy is bustling.
No way they do that.
WHY?
Brotmans are from Tacoma, they are hopelessly naive when it comes to what Utopian Statism has to offer. They started as clothing merchants here locally. I knew quite a few people who have worked for them prior to the PriceCostco era.
“Some will fall to bottom line, yes,”
They STILL don’t get it.
ultimately translating to greater profits.
DUH.. It ALL will fall to the bottom line.
Lefty translation: “We’re going to give all the tax savings to our employees.”
Righty translation: “We’ll give out some crumbs, but keep the most of the tax savings for the bottom line (shareholders).”
They’re trying to serve two masters at the same time.
I’ve always heard great things about Costco – especially re: how well they treat their employees. Where I live, people LOVE Costco and many of the employees have worked there for yeeeeeears.
However, the attempt to act as if this is somehow not what conservatives have been saying all along is the crux of the article, as well as that it questions lefties’ continued support of a completely different plan.
“No way they do that.
WHY?”
They are like bratty children that don’t have the capacity to understand the negative they do to themselves when they toss their dinner on the floor to show the adults “who the boss is”.
Many lefties just don’t see the conservative principles that work in their life.
I have a lefty customer that trips himself up all the time. He fought with the power company over putting a smart meter on his house. He fought for years with his city over a car in his driveway. His two car garage is a walk-through pantry. His retirement investments are in oil companies.
So, on the real-life level, he doesn’t want the government or power company spying on him or telling him what to do, but votes for a one world government and iron-fisted enforcement of leftist laws. Can go a year without food shopping but talks about preppers like they are paranoid crazy people. And he thinks global warming/Climate Change is real – while he lives off oil company profits.
I’m beginning to think you have to have multiple personalities to be a lefty and not see your own incongruities between your stated beliefs and life as lived.