Drudge Retort: The Other Side of the News
Wednesday, January 09, 2019

AT&T is preparing for yet another significant round of layoffs according to internal documents obtained by Motherboard. The staff reductions come despite billions in tax breaks and regulatory favors AT&T promised would dramatically boost both investment and job creation.

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I AM SHOCKED ... SHOCKED I TELL YOU .... that the same exact thing happened that always happens when you give companies tax breaks.

Who could have predicted it?

#1 | Posted by kudzu at 2019-01-09 10:10 AM | Reply | Newsworthy 2

Their service still sucks too.

#2 | Posted by jpw at 2019-01-09 10:11 AM | Reply | Funny: 2 | Newsworthy 1


Companies Are Handing Out Bonuses Thanks to the Tax Law. Is It a Publicity Stunt? (January 2018)
www.nytimes.com

...Many of the large companies that have announced fatter future paychecks are also subject to close regulatory scrutiny. Among them: AT&T, which was one of the first companies to publicly announce plans to reward employees with a one-time bonus. The company is also wrestling with Mr. Trump's Justice Department, which has blocked its planned merger with Time Warner. ...

After Nabbing Billions In Tax Breaks, AT&T's Promised Job Growth Magically Evaporates (September 2018)
www.techdirt.com

... Telecom monopolies have a pretty good racket going. They'll consistently demand all manner of tax cuts, subsidies, and other government perks in exchange for broadband networks they only half or partially deploy--or jobs that never materialize. The nation's telcos in particular have received countless billions in taxpayer subsidies to expand their broadband networks, yet time and time again we've shown how they've wiggled out of these obligations, leaving huge swaths of America left outside of the reach of fast, inexpensive, competitive broadband (that's particularly true if you're poor).

It doesn't matter how many times we go through this little stage play, it's a cycle that just never ends. AT&T's lobbying and policy folks are exceptionally good at routinely promising state and federal governments that a cornocopia of new jobs and amazing broadband investment is just around the corner, but only if AT&T gets what it wants: be that the death of net neutrality, a lower tax rate, more subsidies, or any number of protectionist or otherwise terrible laws designed largely to protect AT&T's non-competitive geographical fiefdoms. It's a cycle, and a level of institutional gullibility, that's pretty staggering in scope and repetition.

Yet somehow we never wise up. We never audit investment promises. And we certainly never hold giant telecom monopolies accountable. For example, AT&T spent most of last year promising all manner of incredible broadband investment, new jobs, and new innovations if the Trump administration was willing to give it a massive new tax cut. These cuts would, we were repeatedly told, result in a huge boon for broadband investment and "really good jobs"...

The Trump administration was happy to oblige, doling out cuts worth upwards of $20 billion for AT&T. But this theater ignored the fact that AT&T (and countless other companies like it) have long engaged in all manner of financial bookkeeping magic to ensure they already pay a relative pittance in taxes (especially true in telecom where complex mergers and gamesmanship like Reverse Morris Trusts can be used to endlessly dodge tax obligations). And it also ignored how many times AT&T has made these empty promises then failed to follow through.

And it's happening again. Despite its $20 billion in tax savings and record profits, AT&T continues to lay off thousands of employees in the wake of the Trump tax cuts...


#3 | Posted by LampLighter at 2019-01-09 10:14 AM | Reply

If you lower the tax rate, you incentivize taking money OUT of the business, instead of expanding or reinvesting.

#4 | Posted by Danforth at 2019-01-09 10:23 AM | Reply | Newsworthy 9

Yet another failure of GOP policy.

Still waiting for a righty to tell me how many times it has to fail before they stop voting for it.

#5 | Posted by jpw at 2019-01-09 10:36 AM | Reply | Newsworthy 1

The promise of wages, jobs and growth paid for via the tax cuts was always nothing more than bullshoot peddled by tinkle down pushers to get their tax cuts.

#6 | Posted by Nixon at 2019-01-09 11:17 AM | Reply | Newsworthy 5

"Still waiting for a righty to tell me how many times it has to fail before they stop voting for it."

What else is there to vote for? Liberal policies fail. Conservative policies fail. So why are you trying to spread hate for something that is broken on both sides?

#7 | Posted by humtake at 2019-01-09 11:41 AM | Reply

"Liberal policies fail."

Caller on line one for you: It's every old person who didn't fall into poverty after retiring.

#8 | Posted by Danforth at 2019-01-09 11:56 AM | Reply | Newsworthy 11

When is it permissible to start eating the rich?

#9 | Posted by SunTzuMeow at 2019-01-09 12:06 PM | Reply

#7,
Really, 'Both Sides are equally to blame'?

Really, you pulled that crusty old infoterd from your ass and waved it under everybody's nose?

Gaddamn, boy, you stink.

#10 | Posted by oldwhiskeysour at 2019-01-09 12:06 PM | Reply

Wireline services, how many here have wireline?

My sister works in Ramon at the call center for ATT landline/wireline services, they have been threatening these layoffs for years as wired services sales fall.

The company is restructuring away from its traditional business, complaining its not keeping on the equivalent to buggy whip makers is absurd.

Lets see how it shakes out, ATT is might be hiring in other fields and this is underreported for obvious reasons.

I am surprised Danforth only enumerates the negative, he always complains about not showing the full equation, but here he is, with half the equation ... the minuses ... big surprise. I wouldn't pick on this except its his mantra, so he kinda deserves it.

#11 | Posted by AndreaMackris at 2019-01-09 12:36 PM | Reply

What else is there to vote for? Liberal policies fail. Conservative policies fail. So why are you trying to spread hate for something that is broken on both sides?

#7 | Posted by humtake

The "both sides" argument is offered by the side with the far worse record.

Republicans are the wino passed out in a gutter, waking up to point at someone sipping a beer in a bar and calling them a drunk.

#12 | Posted by SpeakSoftly at 2019-01-09 01:16 PM | Reply

Caller on line two for you: it's all the people who bought healthcare insurance even though they had a preexisting condition

#13 | Posted by danni at 2019-01-09 01:22 PM | Reply | Newsworthy 1

"When is it permissible to start eating the rich?"

When they are medium rare.

#14 | Posted by danni at 2019-01-09 01:23 PM | Reply | Funny: 2

YAY for Humpy and the Tax Scam of 2018!!

Everyone gets bonus!

Now everyone that took that bonus...

You're fired!

When is it permissible to start eating the rich?

#9 | Posted by SunTzuMeow

I am getting pretty hungry and the kids are starting to look at me funny.

I have seen this look before!!

So I am guessing...any minute now?

Donnerboy

#15 | Posted by donnerboy at 2019-01-09 01:27 PM | Reply | Funny: 2

Trickle down has never worked. Never will.

#16 | Posted by kudzu at 2019-01-09 01:39 PM | Reply

Periodic reminder that the Dow Jones is down 5% since Trump passed his trillion dollar tax cuts for corporations and billionaires.

#17 | Posted by JOE at 2019-01-09 01:43 PM | Reply | Newsworthy 4

Periodic reminder that the Dow Jones is down 5% since Trump passed his trillion dollar tax cuts for corporations and billionaires.
#17

Months ago, I heard a couple at the bar talking to a guy, and they were on the "of course some of the things he says make me sqirm, but just look at your 401k!" theme.

Since that's not as fun to talk about anymore, I'm sure they'll just move on to "he's keeping us safe from the browns*!!"

*who will go 10-6 next year and make a stunning appearance in the AFC Wildcard game.

#18 | Posted by schifferbrains at 2019-01-09 02:15 PM | Reply

"here he is, with half the equation ... the minuses"

The equation I was referring to is a comparative equation:

If you raise the marginal tax rate you encourage investment and reinvestment; if you drop the rates, it's less costly to take money out of the business.

One of those moves is MORE encouragement to reinvest, and one of those moves is LESS encouragement to reinvest. What specifically are you missing?

#19 | Posted by Danforth at 2019-01-09 02:25 PM | Reply | Newsworthy 1

Periodic reminder that the Dow Jones is down 5% since Trump passed his trillion dollar tax cuts for corporations and billionaires.
#17

hmmm isn't that interesting?

Correct me if I am wrong but that isn't about 3 trillion dollars??

My math is pretty bad so I could be wrong here...but, last I checked 3-1=2.

So, instead of ADDING 1 trillion dollars to the economy, President Donald J. Trump managed cause to the economy to LOSE 2 TRILLION DOLLARS!!!?

I am sure that is not correct. How can this be? Where did it go?

I will recheck my figures again...this can't be right....

#20 | Posted by donnerboy at 2019-01-09 02:35 PM | Reply

#11 | Posted by AndreaMackris

This isn't about "Landlines" - they have been selling that network off steadily for years. They closed the call center here several years ago already. ATT has been outsourcing more and more of their call center activity for DECADES. They are using vendors to provide customer support rather than direct employees as much as the contracts with the unions will allow. If your sister doesn't work at a contracted call center and is an ATT employee the ONLY reason your sister still has an ATT job is the union.

ATT has a pretty diverse businesses they are in and they have other problems far more significant then their land line business they need to address.

#21 | Posted by GalaxiePete at 2019-01-09 04:20 PM | Reply

Yaaawn... not Trump's Fault.... AT&T got into this mess all by themselves...

Remember.... AT&T bought DISH network for 60 Billion dollars before all this video streaming nonsense started....

Now they are stuck with it including all the expensive contracts with those nasty movie studios...

My Sis gave up on DISH and is now strictly on Amazon Firestick.

As for me, I gave up on AT&T DSL. It was only 4 megabits... when they could keep it going... now on Spectrum at 200 megabits all for the same price. It's reliable so far... but still...

Customer Service still stinks from both companies....

#22 | Posted by Pegasus at 2019-01-09 04:25 PM | Reply

Odd. They are relocating their call center from New York (the first of many to come leaving New York) to Orange Park, FL.

And AT&T does SUCK. They lied to me and sold me a 2 year contract package, Internet and DirecTv for $55.00 a month. I am now paying $135 a month they don't explain all the discounts have different drop dates. They are fired 7/17/19.

#23 | Posted by gracieamazed at 2019-01-09 04:53 PM | Reply

AT&T bought DirecTV for 48.5 billion.
www.usatoday.com

#24 | Posted by gracieamazed at 2019-01-09 04:55 PM | Reply

#24 More "efficiency" to come.

#25 | Posted by BruceBanner at 2019-01-09 08:07 PM | Reply

#23 You got lied to by a sales person and now you are disappointed? I am shocked.
Don't feel bad, ATT will fire the brown people first to make you feel better.

#26 | Posted by bored at 2019-01-09 08:28 PM | Reply

I can think of many successful liberal countries. Can someone please pLint me to a successful conservative, laissez-faire country?

#27 | Posted by TFDNihilist at 2019-01-10 10:01 AM | Reply

"Th...that's impossible!" - Republican Armchair Economists

#28 | Posted by IndianaJones at 2019-01-10 10:37 AM | Reply

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