Trump Tax Benefits Wall Street & CEOs, Not Workers
April 16, 2018
As Trump heads to Florida for a tax event today – before he wastes taxpayer dollars at Mar-a-Lago – here’s a look at how the Trump tax is playing out (hint: it’s not good for working Americans):
While Trump meets with local business-owners in Florida, most small businesses say his tax law favors big corporations and they have no plans to hire more workers.
The Hill: “Poll: Most small-business owners say they will not hire, give raises because of new tax law.”
The Hill: “54 percent of small-business owners say the tax law favors large corporations over small businesses. 55 percent of respondents do not believe the law puts small businesses on a level playing field with big businesses.”
Average CEO pay last year grew to the highest level in 11 years, valued at $15.7 million – then Republicans decided to give them big tax cuts.
Washington Post: “CEO pay is up yet again. A booming stock market and bulging equity awards propelled the median 2017 compensation for CEOs of the 100 largest companies to the highest figure in 11 years, according to a new analysis. […] Although the 5% median pay increase for CEOs was slightly lower than the prior year's 6% rise, the median CEO pay package was valued at $15.7 million, the first time it notched above 2016's previous high of $15 million.”
As a result of the Trump tax, Wall Street banks continue to be big winners and are now making record profits.
Wall Street Journal: “JPMorgan Chase said Friday that its quarterly profit surged 35% to an all-time high, as a strong economy and nearly a quarter-billion dollars in tax savings boosted results. The first-quarter results were punctuated by big gains in profitability and trading, especially for desks that specialize in stocks. The bank’s total revenue rose 12% to 27.91 billion.”
Wall Street Journal: “The banking industry was one of the biggest beneficiaries of the lower corporate tax rate. While it led to big one-time charges last quarter, the lower rate is starting to lift bank earnings this quarter. Much of that is already in analysts’ estimates for the bank’s future profits, however. Bank of America said its effective tax rate fell by 9 percentage points because of the bill.”
Republicans are struggling to make the Trump tax a winning issue because the American people know the truth: It’s not benefitting working Americans.
Bloomberg: “Republicans Struggle to Make Tax Cuts a Winning Election Issue”
Bloomberg: “Four months later, some GOP lawmakers who hoped the law would save them from defeat may have to start dusting off their resumes. Some recent polls show that the majority of Americans still don’t support the tax law, despite an uptick in sentiment since the end of 2017.”