Trump’s Tax Law Helps Corporate Execs While Failing Workers

Trump’s corporate tax cuts were supposed to trickle down to workers. Instead, shareholders and executives are pocketing checks while workers are getting pink slips.

JPMorgan announced plans to lay off hundreds of workers next month after pocketing nearly $9 billion from Trump’s tax law and having the most profitable year in its history.

Bloomberg: “JPMorgan Chase & Co. plans to dismiss several hundred workers from its consumer unit as the lender seeks to rein in costs, according to people briefed on the matter. The bank intends to notify affected employees on Feb. 6 and cuts will be scattered across the division, said one of the people, who asked not to be identified because the information is private.”

Business Insider: “JPMorgan Chase boosted its yearly compensation for CEO Jamie Dimon to $31.5 million after the bank’s second-straight year of record profitability. The pay package includes a $1.5 million annual salary and $30 million worth of performance-based rewards, according to a regulatory filing made Thursday. Of the $30 million in ‘variable incentive compensation,’ $5 million will be delivered in cash while the remainder is held in stock units. The latest compensation package marks a 1.6% raise from his 2018 pay.”


Just last week, Trump told a JPMorgan exec to say “thank you” for helping deliver “very substantial” earnings and making bankers look “very good.”

Trump To JPMorgan Executive: “When it came to JPMorgan Chase & Co., he asked for reciprocation. ‘They just announced earnings and they were incredible,’ he said as he greeted Mary Erdoes, who heads asset and wealth management for the biggest U.S. bank. ‘They were very substantial. Will you say, ‘Thank you, Mr. President,’ at least, huh?’ JPMorgan on Tuesday posted the most profitable year for any U.S. bank in history. ‘I made a lot of bankers look very good. But you’re doing a great job.’ He told her to ‘say hello’ to the firm’s billionaire chief executive officer, Jamie Dimon. ‘I think we’re seeing him tomorrow.’”

Despite being one of the biggest beneficiaries of Trump’s tax law, manufacturer 3M is cutting 1,500 workers after using its tax savings to benefit shareholders.

CNN: “Industrial conglomerate 3M is laying off 1,500 workers globally as the company looks to restructure. 3M announced the job cuts, which amount to a little more than 1.5% of its total employee count of 96,000, in its fourth quarter earnings release Tuesday.”

Minneapolis/St.Paul Business Journal: 3M paid about $1 billion less in taxes in the first year under Trump’s tax law.

Star Tribune: “3M said its tax rate under the new ‘Tax Cuts and Jobs Act’ will fall to 20 percent to 22 percent in 2018, down from a prior rate of 26 percent to 27 percent. Executives said they will use the savings to boost returns for shareholders, increase pension reserves and to invest in the company.”