U.S. Sen. Tammy Baldwin to Kimberly-Clark executives: 'How many tax breaks do you need?'

Chris Mueller
Appleton Post-Crescent
Kimberly-Clark Corporation located at 1050 Cold Spring Road, Tuesday, January 23, 2018, in Fox Crossing, Wis.

NEENAH - U.S. Sen. Tammy Baldwin sent a letter Wednesday accusing Kimberly-Clark Corp. executives of using corporate tax cuts to enrich themselves and shareholders amid announcements of layoffs and plant closures.

Kimberly-Clark, the the Fox Cities' third-largest employer, announced in January a plan to close locations in Neenah and Fox Crossing. The move is expected to eliminate about 600 jobs.

Kimberly-Clark had previously announced a plan to eliminate as many as 5,500 jobs and close or sell 10 plants worldwide.

Baldwin said in her letter to Kimberly-Clark's board of directors she had a "deep concern for the Wisconsin workers whose hard work should be rewarded, but instead face layoffs."

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Baldwin said workers in Wisconsin helped create $3.3 billion in operating profit for Kimberly-Clark in 2017.

Baldwin, a Democrat, referenced the Republican-backed tax reform legislation passed in December in her letter. Baldwin said Kimberly-Clark's executives expect the corporate tax cut to increase profits by 6 percent, or roughly $192 million but plan to spend about $900 million on stock buybacks.

Kimberly-Clark Corp.'s Neenah Nonwovens facility located at 1111 Henry Street Wednesday, January 31, 2018, in Neenah, Wis.

“This is not right and it is not fair,” Baldwin said "It is simply wrong for the company to use corporate tax cuts to reward the wealth of its executives and shareholders through increased dividends and more stock buybacks while closing facilities and laying off workers."

Baldwin also mentioned a plan proposed this week by Gov. Scott Walker to give Foxconn-style tax incentives to Kimberly-Clark to try to prevent the closures in Neenah and Fox Crossing.

"At a time when permanent corporate tax breaks are being used for a job layoff plan and spending $900 million on stock buybacks for executives and shareholders, the people I work for are asking — how many tax breaks do you need?" Baldwin said.