Trump Heads to West Virginia to Sell GOP’s Failing Tax Scam

Today, President Trump heads to West Virginia in another attempt to sell the GOP tax scam – a bill that ultimately raises taxes on 86 million middle class families.

And after months of empty promises and hype, President Trump and Republicans in Congress are watching their dishonest tax scam talking points collapse in the eyes of hard-working Americans.

The Hill: GOP tax message hits a snag

More than three months after the passage of the GOP’s tax-cut law, new surveys suggest that many people don’t think they are getting bigger paychecks … A CNBC poll suggested that many people aren’t noticing much of a change from the law.

New York Magazine: Polls: After GOP Tax Bill Went Into Effect, It Became Less Popular

The percentage of Americans who believe their taxes have gone down remains resolutely low: In Monmouth’s poll, just 24 percent of voters say they expect their federal taxes to go down.

New York Times: Blue-Collar Trump Voters Are Shrugging at Their Tax Cuts

The result has hardly been a windfall, economically or politically … some are convinced that what the tax cut has given them upfront will ultimately fade.

Washington Examiner: Storm clouds: More say tax cuts hurt than help, Trump voters scorn Ryan, McConnell

More voters believe that 2017 tax cuts on which the GOP is building its 2018 election strategy will do them more harm than good … And overall, voter don’t seem jazzed by the cuts.

Huffington Post: Republicans Are Seeing Weak Returns On The Tax Law

About one-quarter of Americans say they’ve seen an increase in their paycheck as a result of the law, but just 4 percent that they consider the increase to be a substantial one.

Why are the majority of hard-working families not seeing benefits from the GOP tax scam?  Because Republicans prioritized handing massive tax breaks to corporations and the top one percent, while abandoning American workers.

New York Times: Trump’s Tax Cuts in Hand, Companies Spend More on Themselves Than on Wages

So far, companies are using much of the money for something with a more narrow benefit: buying their own sharesThose so-called buybacks are good for shareholders, including the senior executives who tend to be big owners of their companies’ stock.

Vox: Corporate stock buybacks are booming, thanks to the Republican tax cuts

Right after Republicans in Congress passed their tax bill, lowering tax rates on corporations, companies delivered a very public thank-you: a series of bonus and investment announcements. It was a major PR opportunity for both corporate America and the GOP, meant to show that American businesses were sharing their billions of dollars in tax cut savings with their workers and the broader economy. But over the next few months, the real winners from the corporate tax cut became clear — not workers and consumers, but shareholders.

WMNF: In the Wake of the GOP Tax Bill Workers Face Layoffs and Smaller Bonuses

If you look from corporation to corporation, the dollars that are being used to buy back stocks and pay additional dividends absolutely dwarf the amount that is going to bonuses.

USA TODAY Editorial: Corporate America Invites A Backlash

The tax bill was sold as a way to create jobs and boost stagnant wages. So far, at least, corporations have been showing more concern about shareholders than about employees or the economy as a whole. In fact, it is hard to imagine a better strategy for fomenting a backlash and ensuring that the new low rates don’t last.

CNBC: Companies Are Putting Tax Savings In The Pockets Of Shareholders

Companies have been feverishly putting the savings they reaped from the tax breaks passed in December into their investors’ pockets this year … Share buybacks in 2018 have averaged $4.8 billion a day, double the pace for the same period last year.

CNN Money: Tax cut scoreboard: Workers $6 billion; Shareholders $171 billion

It’s raining stock buybacks on Wall Street — thanks to President Trump’s massive corporate tax cuts … shareholders, not workers, are far bigger direct winners from the Tax Cuts and Jobs Act of 2017.

As Corporate America celebrates their massive tax cuts by announcing more than $200 billion in stock buybacks to enrich their executives and investors, many of the corporations pocketing a windfall from the GOP tax scam are announcing something worse: layoffs.

Below are just some of the corporations that have overwhelmingly benefitted from the GOP Tax Scam, while quietly laying off employees:

Kimberly-Clark “The company said it would use savings from the new Republican tax plan to fund the layoffs and restructuring…” 5,500
Macy’s “[Macy’s] currently estimates the deferred tax impact of the federal tax corporate rate reduction will result in a non-cash tax benefit of approximately $550 million to $650 million.” 10,000
Walmart “…based on the company’s average annual United States earnings over the past five years, he said, savings from the cut in the corporate tax rate alone could be roughly $2.2 billion a year, or 40 percent.” 7,500
AT&T “AT&T Inc. booked a $20 billion paper gain from a federal tax overhaul that will hand it about $3 billion in extra cash this year…” More than 4,000
Comcast “Cable giant Comcast Corp… posted a big one-time non-cash gain of $12.7 billion on the Trump tax overhaul that slashed corporate tax rates…” 500
Sears “[Sears] said Thursday that it expects a profit for the fourth quarter of between $140 million and $240 million. That’s because it will get an on-paper gain of between $445 million and $495 million, due to a change in the tax law last year.” 220
Tyson Foods “The company forecast more than $300 million in savings in fiscal 2018 related to the overhaul of U.S. tax laws…” 590
Pfizer “In addition to the future tax benefits, Pfizer also reaped immediate rewards. The company said its ‘reported income’ in 2017 was $10.7 billion higher because of tax reform.” 300
Proctor & Gamble “Ultimately, P&G says it will benefit from a lower tax rate that will drop from 28% to 21%. Excluding the one-time impact, the company said the tax cut produced a $135 million windfall for the quarter. 780
Bank of America “Bank of America, for example, will likely add about $2.7 billion to its 2018 profits…” 103
Tenet Health Care Corp. “[Tenet’s] cash tax payments will be approximately $10 million to $20 million lower each year over the next several years, which will be additive to free cash flow.” 700

With their tax bill, the GOP passed a scam that gives 83 percent of the tax cuts to the wealthiest one percent – putting corporations and the richest ahead of the ‘forgotten men and women.’

As President Trump and Congressional Republicans continue to promote their tax scam that does nothing for American workers, Democrats continue to fight for a fair, bipartisan tax code for our country’s hard-working families with A Better Deal: Better Jobs, Better Wages, Better Future.

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