Jump to content
Sign in to follow this  
ExPDXer

How's that Republican 'middle class' tax cut working out?

Recommended Posts

Remember That Big Republican Tax Cut? Turns Out Corporations Got The Gold Mine. You Got The Shaft.

 

<snip>

Many opponents of the tax cuts suggested corporations would keep all or most of the money for themselves and use most of it to repurchase their own shares, a move that boosts the compensation of senior executives. So what has happened? Exactly what the naysayers said would happen.

 

One year after the tax cut passed, General Motors closed 5 factories in North America and laid off more than 14,000 workers. How could it have known in 2017 that business would be so bad 12 months later it would need to trim that many workers and close so many assembly plants? But nothing stopped GM from spending $10 billion on stock repurchase plans. The plant closings and layoffs are expected to save $6 billion, but the company has shoveled $25 billion in financial benefits to Wall Street investors, according to the UAW.

<end snip>

 

Here are the results:

 

The promise: The wealthy won't benefit

“The rich will not be gaining at all with this plan.”

– President Donald Trump, Sept. 13, 2017

Reality:

Federal Estate and Gift Tax Limit, 2017 vs 2018
Prior to tax bill: $5.49 million
After tax bill:$11.18 million
 
The promise: The middle class will be the biggest beneficiaries
“Our framework ensures that the benefits of tax reform go to the middle class, not to the highest earners.”
– President Donald Trump, Oct. 11, 2017
Reality:
The group getting the largest cut is clear: Families earning from $200,000 to $1 million will see their tax bills drop about 9 percent next year according to Congress’s official scorekeeper, the nonpartisan Joint Committee on Taxation. That’s 1 percentage point more than the tax cut for households earning $75,000 to $100,000. And, the cuts for middle-class wage earners fade over time. By 2026, changes to individual tax rules expire, while corporate changes are permanent. Unless Congress acts, 53 percent of all taxpayers will see a modest tax hike by 2027, the Tax Policy Center says, including almost 70 percent of middle-income families.
 
And here is one big, fat whopper of a promise, (otherwise known as a lie)....
 
The promise: Corporations will boost wages and families will get an average pay increase of $4,000 to $9,000
“I would expect to see an immediate jump in wage growth.”
— Council of Economic Advisers Chairman Kevin Hassett, Oct. 16, 2017
Reality:
Workers are still waiting for their raises. Hourly wages, adjusted for inflation, were up 0.8 percent in November, according to the Labor Department. It is significantly lower than real wage increases in 2015 and early 2016, hourly raises occasionally topped 2 percent. Even then, economists worried that the strong economy wasn’t helping the average worker.
 
So if they didn't raise wages, what did corporations do with the money?
Here is a hint: Stock buybacks..... Instead of creating jobs, or raising wages, or (heaven forbid) contributing to their communities, the shareholders voted to buyback stock in order to reward,... (you guessed it), the shareholders. Who would've thunk that would happen!:
 
tx2.jpg

The promise: Tax cuts will pay for themselves

“We are totally confident this is a revenue-neutral bill and probably a revenue producer.”

— Senate Majority Leader Mitch McConnell, Dec. 3, 2017

Reality:

Many Republicans rejected the nonpartisan CBO’s estimate that the law would add $1.9 trillion to the federal debt through 2027. They insisted extra economic growth would generate enough revenue to offset the tax cuts. Initial tax receipts suggest the CBO had it right, and other independent experts say the agency may have been even been too optimistic.

 

The Deficit is Projected to Expand from 2017 to 2018

Prior to tax bill: $666 billion

After tax bill: $898 billion

 

 

 
 

Share this post


Link to post
Share on other sites

Trickle down tax cuts never work but Republican voters fall for it every time. They increase corporate profits by escalating the debt.

 

Share this post


Link to post
Share on other sites

I work for a big corporation that employs 60 thousand world wide. We all got a check for $500. A one time offering. 

I bring it up because a lot of US Corporations also did likewise. They (those employees) were overjoyed. And the Corporations, thinking they gave this one time crumb to their employees/ made them also feel good as well...

I also bring this up because Corporations like mine who are successful grow mostly by buying up smaller firms. But what they seem not very capable at doing is investing in R&D, or in focusing on becoming more profitable by creating more quality in the things that they make. And they will tell you that they just can never find enough qualified help.

They always want to hire more people, but it is difficult in such an economy like the one we find ourselves in.

 

Well they could, if they raised wages. Well that's easy for a worker to say. You can't go spending money willynilly, just spending money to spend money, when you need to meet 

the bottom line. 

The Demand I might suppose, just isn't there yet.

 

Peace!

Share this post


Link to post
Share on other sites

I work for a big corporation that employs 60 thousand world wide. We all got a check for $500. A one time offering. 

I bring it up because a lot of US Corporations also did likewise. They (those employees) were overjoyed. And the Corporations, thinking they gave this one time crumb to their employees( only in those who worked in the US)/ made them also feel good as well...

I also bring this up because Corporations like mine who are successful grow mostly by buying up smaller firms. But what they seem not very capable at doing is investing in R&D, or in focusing on becoming more profitable by creating more quality in the things that they make. And they will tell you that they just can never find enough qualified help.

They always want to hire more people, but it is difficult in such an economy like the one we find ourselves in.

And oh, by the way, a lot of things we sell to other countries, well those other countries have regulations, and oh by the way, who is in charge of making sure we meet those other countries regulations, who feels all the turmoil, who is by the way in charge of all this growth, and without any big capital investment, I might add???

 

Well they could, if they raised wages. Well that's easy for a worker to say. You can't go spending money willynilly, just spending money to spend money, when you need to meet 

the bottom line. 

The Demand I might suppose, just isn't there yet.

 

Peace!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...