CEO pens viral piece exposing the Republican tax cut as a lie to the middle class
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David Mendels is the former CEO of Brightcove as well as Adobe executive. Writing on LinkedIn Mr. Mendels broke down the lie that is the GOP tax cut plan. Specifically, Mendels attacked Trump senior economic adviser Gary Cohn and Speaker Paul Ryan’s assertiCEO pens viral piece exposing the Republican tax cut as a lie to the middle class
David Mendels is the former CEO of Brightcove as well as Adobe executive. Writing on LinkedIn Mr. Mendels broke down the lie that is the GOP tax cut plan. Specifically, Mendels attacked Trump senior economic adviser Gary Cohn and Speaker Paul Ryan’s assertions that this tax cut is about helping the middle class by easing their burdens and creating wage increases across the board. The latter mythology has been spread by GOP officials for weeks, including this amazing claim: xWhat would your family do w/ a $4,000 raise from the PresidentâÂÂs tax cut plan? REPLY & IâÂÂll share your familyâÂÂs story in the press briefingâ Sarah Sanders (@PressSec) October 23, 2017 Mendels uses this outrageous claim as his jumping off point to explain the very simple ways in which companies decide on who they will hire and how much they will pay them, and it turns out that tax cuts DO NOT figure into those equations ever. Starting with the hiring and expansion of hiring in a company, Mendels explains that tax cuts affect one’s profits but the consumers’ demand is what dictates how many people he might hire. We had clear metrics we followed in most areas--for every additional $ in sales growth we committed to, we could hire a roughly fixed ratio of addition sales reps. For every increase in call volume, we would hire a roughly fixed ratio of customer service reps. For new product ideas, we would expect management to sign up for significant and specific revenue goals. It is a simple but true concept, customers drive business growth, not tax rates, not mythical “job creators.” Tax rates impact profitability, but are only very indirectly tied to hiring. Read more