SEC Analysis: CEOs Are Cashing In On Trump Tax Giveaways
June 13, 2018
The Trump tax has not raised wages and is not expected to create jobs, as Trump and Republicans promised it would. Now, instead of benefiting their workers, CEOs are using their massive tax giveaways to enrich themselves.
According to the SEC, CEOs have cashed in on the Trump tax breaks to boost their own compensation by tens of millions of dollars.
CNN Money: “Executives Are Cashing In On The Explosion In Stock Buybacks”
CNBC: “Corporate Executives Are Using Stock Buybacks To Pad Their Own Compensation, According To The SEC”
Meanwhile, the Trump tax is unlikely to raise wages or create jobs as Republicans promised.
New York Times: “The new corporate tax cuts are unlikely to stimulate the level of job creation and wage growth that the Trump administration has promised, a trio of prominent economists has concluded, because high tax rates were not pushing much investment out of the United States in the first place.”
While Americans face higher costs of living, including from higher gas prices, wages have not kept up.
Bloomberg: “U.S. inflation accelerated in May to the fastest pace in more than six years, reinforcing the Federal Reserve’s outlook for gradual interest-rate hikes while eroding wage gains that remain relatively tepid despite an 18-year low in unemployment.”
Bloomberg: “A separate Labor Department report on Tuesday illustrated how higher prices are pinching wallets: average hourly wages, adjusted for inflation, were unchanged in May from a year earlier, even as nominal pay accelerated to a 2.7 percent annual gain from 2.6 percent in April. For production and nonsupervisory workers, real average hourly earnings fell 0.1 percent from a year earlier.”
Instead of creating jobs, the Trump tax could actually encourage companies to move jobs overseas.
New York Times: “Included in the new tax law were several steps meant to address profit-shifting, including a complicated set of global minimum taxes for multinational corporations. Those steps have frustrated many companies as they wait for the Treasury Department to issue regulations and guidance on how they will be put into effect. Some economists worry that one of the measures could actually encourage companies to move jobs out of the United States.”