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.
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.
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.
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.
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.
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.
So far, companies are using much of the money for something with a more narrow benefit: buying their own shares … Those so-called buybacks are good for shareholders, including the senior executives who tend to be big owners of their companies’ stock.
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.
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.
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.
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.
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:
|CORPORATION||PROFITS UNDER #GOPTAXSCAM||LAYOFFS|
|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.