While President Trump, House Speaker Paul Ryan, Representative Sean Duffy and other Republicans are trying to convince us that the December 2017 Tax Cut and Jobs Act is benefiting the working class, more evidence is surfacing that proves it is a tax bill of, by and for the rich.
A recent analysis by Americans for Tax Fairness, a political advocacy group devoted to tax reform, found:
- Only 67 of the Fortune 500 corporations have announced plans to share their tax cuts with employees.
- Only 4.3 percent of workers will receive a one-time bonus or wage increase tied to the business tax cuts.
- Businesses spent 37 times as much on stock buybacks than on bonuses or increased wages for workers.
- Companies received nine times more in cuts than what they passed on to their workers.
The Congressional Budget Office’s most recent projections found the Republican tax plan will lead to a 2018 deficit that is $242 billion higher than previously estimated.
The second-biggest US drug company, Pfizer, announced on December 18, four days before President Trump signed the tax bill, how it would apply its tax savings: a $10 billion share buyback, which was on top of a $6.4 billion previous buyback plan, and a 6% stock dividend increase worth about a half billion dollars a year.
At the same time, Pfizer decided to end investment in Alzheimer’s and Parkinson’s research, laying off about 300 researchers. This was discouraging news for the estimated 6.5 million Americans who suffer from these diseases.
Remember how ecstatic President Trump and the Republican leadership were upon passage of their tax bill? The reason for their elation was most certainly not that the tax bill would result in benefits flowing to the vast majority of Americans.
They were celebrating the realization of their dream: permanent tax cuts for themselves and the political donor class, their rich campaign contributors. The Republicans are now assured of future campaign donations that will give them great advantages in upcoming elections.
If they win, they will continue to push for policies that will help the minority of ultra-rich people keep a stranglehold on our democracy.
“Trump’s Tax Cuts Didn’t Benefit US Workers, Made Rich Companies Richer, Analysis Finds,” Newsweek, 4-10-2018
“Pfizer, Pocketing a Big Tax Cut from Trump, Will End Investment in Alzheimer’s and Parkinson’s Research,” LA Times, 1-8-2018