Newsweek: Trump’s tax cuts didn’t benefit U.S. workers, made rich companies richer, analysis finds

News

Newsweek: Trump’s tax cuts didn’t benefit U.S. workers, made rich companies richer, analysis finds

Before Republicans rushed through their hastily-written tax bill in December, their leadership promised that the tax cuts they were about to give to the wealthiest 1% would actually help middle-class families.

But Sherrod called this “tax reform” what it was: a huge tax cut that would make the rich and corporations even wealthier.

A new study proves Sherrod right. Read more on this week’s analysis:

Newsweek: Trump’s tax cuts didn’t benefit U.S. workers, made rich companies richer, analysis finds

Nicole Goodkind – April 11, 2018

Key points:

  • In passing their tax reform bill in December, President Trump, House Speaker Paul Ryan, and Republican leaders emphasized that the legislation would help middle-class Americans through direct tax reductions or refunds, or through the trickle-down of bonuses and wage increases from their employers.

  • A new analysis of all Fortune 500 companies demonstrates that this isn’t the case: The study found only 4.3 percent of workers will receive a one-time bonus or wage increase tied to the business tax cuts, while businesses received nine times more in cuts than what they passed on to their workers.

  • The analysis also found that companies spent 37 times as much on stock buybacks than they did on bonuses and increased wages for workers.

  • “President Trump and Republicans gave huge tax cuts to big drug companies, big oil and other corporations, but corporations are giving back little—if anything—to working families,” said Frank Clemente, executive director of Americans for Tax Fairness, the organization that produced the analysis. “In fact, this [analysis shows] that 433 corporations out of the Fortune 500 have announced no plans to share their tax cuts with employees.”

Read more here.