Followups - September 2018
- August 30, 2018
GE confirms plans to close Salem plant
GE Power has decided to cease production at its Salem plant.
The Roanoke Times reported in early August that the company announced its decision after negotiations with an employees union failed to produce enough savings to keep the facility open.
The union’s proposal would have cut expenses by $6 million a year, according to the newspaper.
GE expects to end manufacturing at the plant in one to two years. The shutdown will affect the jobs of about 265 employees.
Virginia Business looked at the possible effects of the plant closing in its August issue. The GE facility, which opened in 1956, once employed 3,500 workers.
Proposed tax regulations issued for pass-through entities
In early August, the U.S. Department of Treasury issued proposed regulations for “pass-through” entities entitled to receive 20 percent deductions under the federal tax reform law passed by Congress last year.
Pass-through businesses don’t pay income taxes at the corporate level. Instead, their income is distributed to their owners, and taxes are paid at their individual level.
About 30 million U.S. businesses are organized as pass-through entities.
Qualifying business owners will receive a full 20 percent deduction on business income up to $315,000 for married couples and $157,500 for individual filers.
Virginia Business looked at the potential effects of the tax reform bill in its March issue.