Trump Tax Law Breaks Republican Promise To Help Workers
August 6, 2018
Trump and Republicans repeatedly promised that the Trump tax law would “trickle down” and be a boon to American workers. As CEOs collect billions in profit and real wages for workers decrease, it’s clear that was a lie. Here’s the truth:
Trump and Republicans failed to deliver on their promise that the Trump tax law would be a boon to American workers.
Business Insider: “Now that enough time has elapsed since the passage of the tax cuts for economists to begin analyzing the data, it's clear that while many Americans may be seeing a bit more money in their paychecks as a result of the new tax breaks, the promised wage growth and business investment have yet to materialize.”
While CEOs collect billions in profits, many Americans will actually owe more money when they file their taxes next year.
Politico: “‘Eye-popping’ payouts for CEOs follow Trump’s tax cuts”
Associated Press: “Congressional auditors say about 30 million people — 21 percent of U.S. taxpayers — will have to come up with more money to pay their taxes next year because their employers withheld too little from their paychecks this year under government tables keyed to the new tax law.”
While big corporations reap massive profits, they are now raising prices on consumers whose wages remain stagnant.
Wall Street Journal: “Profits Surge at Big U.S. Firms.”
Wall Street Journal: “Yet many companies are seeing higher costs for raw materials and labor, something that can crunch profit margins if they can’t raise prices… Raising prices is tricky because it can hurt demand, but the strong economy paired with growing revenue have emboldened companies to push through increases to customers.”
While CEOs use corporate tax cuts to enrich themselves and their wealthy shareholders in record numbers, real wages for workers have decreased.
Financial Times’ Robin Wigglesworth: “Goldman's buyback desk ups its 2018 estimate to a record-breaking cool $1 trillion. Reckons August will be particularly buyback-bountiful.”
Business Insider: “Real average hourly earnings the approximately 80% of workers categorized as ‘production and nonsupervisory employees’ edged 0.2% lower over the same period. Real median weekly earnings have also decreased slightly.”