CBS News: Few companies using tax cuts for pay hikes

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CBS News: Few companies using tax cuts for pay hikes

Before passing their tax scam, GOP leaders promised that workers would reap the benefits.

But new data shows that most CEOs aren’t raising their employees’ salaries. Instead, shareholders are the ones seeing profits.

We should all be frustrated that the tax scam has only made inequality worse. If you agree, show your support for Sherrod, who fights every day to make sure workers have a fair shot:

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CBS News: Few companies using tax cuts for pay hikes

Kate Gibson – October 2, 2018

Key points:

  • When it comes to reaping the benefits of the windfall from last year’s tax cuts, it’s better to be a shareholder than a wage earner, new data suggest.
  • Although dozens of companies announced extra pay for workers after the December tax overhaul slashed the corporate tax rate to 21% from 35%, those headline-grabbing moves are proving to be more of an exception than the rule.
  • A recent study of 152 corporations shows that 86% of the CEOs, chief financial officers and other top executives said they would not raise salaries because of the tax cut, while 9 of 10 companies also said they do not plan to offer employees one-time bonuses related to the deal.
  • The companies, which were surveyed in July and August and which generate a combined $700 billion in annual revenue, signaled five different priorities for the tax savings. Top on the list—speeding up capital investments, cited by 49% of respondents. That was followed by padding their cash reserves, boosting investment in training and development, acquiring new businesses, and rewarding shareholders with increased dividends.
  • The results differ from the prediction President Trump made shortly before signing the Tax Cuts and Jobs Act into law in December, when he said it “would likely give the typical American household a $4,000 pay raise.”

Read more here.