While everyone is wrapping up their taxes for 2017, the effects of Trump’s 2018 tax bill are already being felt–and it’s not helping Americans the way the GOP promised.
The Republicans promised that the massive tax cuts to the wealthy would “trickle down” to the working class. After places like Apple gave one-time bonuses, in that company’s case, $2,500 in stock grants. Republican House Speaker Paul Ryan used these bonuses to show that “tax reform is working.” He celebrated that “Workers are coming home and telling their families they got a bonus, or they got a raise, or they got better benefits.”
But not that many workers will be able to say that. According to a new analysis by the Fortune 500 companies, only 4.3% of workers will receive a wage increase or one-time bonus as a result of the tax bill. Meanwhile, the same businesses received nine times more in cuts than what they pass down to the workers. And instead of investing in their employees, companies are spending 37 times more on stock buybacks than they did on bonuses and wage increases.
“There are too many disingenuous claims that the Trump and Republican tax cuts for corporations will trickle down to the middle class,” said Frank Clemente, executive director of Americans for Tax Fairness. “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 Clemente. “In fact, this [analysis shows] that 433 corporations out of the Fortune 500 have announced no plans to share their tax cuts with employees.”
And the problems are only going to get worse. New projections from the Congressional Budget Office, a nonpartisan entity, found that the Trump Tax Cuts will lead to a 2018 deficit $242 billion higher than they previously estimated.
In January, Treasury Secretary Steven Mnuchin claimed that 90% of all working adults would see pay increases thanks to the tax bill. His math was off by 21 times. Good thing he’s in charge of U.S. finances.
Source: Truth Examiner