RELEASE: CAP Action Memo: Trump’s Broken Promises to Michigan Working Families

Washington, D.C. — Today, President Donald Trump will headline an event at the Kellogg Arena in downtown Battle Creek, Michigan. In previous trips to the state, Trump promised Michigan families that his administration would work to create jobs, increase wages for workers, and lower health care costs. In reality, his administration’s record on these issues shows that it has failed to deliver on these promises. 

Instead, his administration has sided with corporate interests and insurance companies to end protections for people with preexisting conditions—and even signed into law the Tax Cuts and Jobs Act (TCJA), a tax bill that largely benefited wealthy earners and incentivized companies such as Kellogg to move jobs overseas.

Slightly more than one year after the Trump administration’s tax bill was passed, Kellogg Co. announced that it would eliminate 67 Battle Creek jobs as it moved to restructure its Global Growth Team. The announcement of layoffs came on the same day that Kellogg announced sizable profits of more than $13.5 billion—a 5.4 percent increase over the previous year—as a result of the Trump administration’s tax cuts. Kellogg’s earnings per share also increased 7 percent year over year, “lifted by an accounting gain related to … an effective tax rate that was reduced by both U.S. Tax Reform and discrete tax benefits.” 

In Battle Creek alone, 133 Kellogg employees lost their jobs due to mass layoffs or plant closures since the tax cut was passed almost exactly two years ago.

Learn more about President Trump’s top broken promises to Michigan families here.

Profits and wages

Promise: “We’re going to create great jobs and we’re going to get the wages up.” – Donald Trump in Dimondale, Michigan, August 19, 2016

Reality: Trump said he would veto an increase in the federal minimum wage, which would have given a raise to nearly 40 million people nationwide. The Trump administration blocked a federal minimum wage increase for Pennsylvania workers. 

  • 1 million Michigan workers were denied a pay increase as a result of the Trump administration blocking a federal minimum wage increase.
  • Michigan workers lost $4 billion in wages as a result of the Trump administration blocking a federal minimum wage increase.

The Trump administration has also taken away safeguards that ensure workers are paid overtime, protect retirees from exploitative financial advisers, and ensure that people pay less at the gas pump. Thanks to the Trump administration, workers have seen:

Health care

Promise: “We are going to save health care for every family in Michigan … Much less expensive. Much better health care.” – Donald Trump in Grand Rapids, Michigan, October 31, 2016

Reality: The Trump administration is trying to sabotage Americans’ health care by repealing the Affordable Care Act (ACA) or destroying the law in the courts:

  • 4.1 million Michiganders with preexisting conditions will lose protections under ACA repeal.
  • 720,000 Michiganders will lose their health coverage under ACA repeal.
  • The average Michigan family would see a $1,590 annual premium increase under ACA repeal.

Taxes

Promise: “No one will gain more from tax cuts than low and middle-income Americans.” – Donald Trump in Detroit, August 8, 2016

Reality: Most of the Trump administration’s $2 trillion tax cut goes to corporations and the rich. Many Michigan families are getting stuck with the bill:

  • 253,020 Michigan families paid more in taxes last year due to the Trump administration’s tax bill

For more information on this topic or to speak with an expert, please contact Freedom Alexander Murphy at or 202-796-9712.