AT&T is among several large corporations whose CEOs announced support of the Trump tax cut bill by claiming if the legislation passed, their companies would ensure workers reaped benefits from it. But a report published on 22 May by the Congressional Research Service, a non-partisan thinktank for members of Congress, found the tax cuts did not significantly affect the economy or boost wages, but benefited investors more than anyone else.
“The evidence continues to mount that the Trump-GOP tax cuts were a scam, a giant bait-and-switch that promised workers big pay raises, a lot more jobs and new investments, but they largely enriched CEOs and the already wealthy,” said Frank Clemente, executive director of Americans for Tax Fairness.
He noted only 4% of the US workforce saw any sort of pay increase or bonus from the tax cuts. Meanwhile, data collected by ATF shows corporations have cut thousands of jobs since the tax cuts were passed, while using tax windfalls to buy back $1tn of their own stock, which primarily benefits corporate executives and wealthy investors since half of all Americans own no stock.
In November 2018, GM announced it would cease operations at five plants in Michigan, Ohio, Maryland and Ontario, Canada, resulting in the loss of more than 14,000 jobs in those communities. As GM is closing plants, the company has spent $10bn since 2015 on stock buybacks, and made a net profit of over $8bn despite paying no federal taxes in 2018.
( I would love
to see if Obese Donald paid any taxes) GM reported a tax windfall of $157m in the first three months of 2018 due to the Trump tax cut.
Rather than invest in its workforce, Wells Fargo bought back 350m shares in early 2018, worth about $22.6bn, (here's my favorite tidbit:) increased CEO salary by 36%,
and announced plans in September 2018 to eliminate at least 26,000 jobs in the US over the next three years as many of those positions are being sent overseas.
Oh ……. how surprising!!! Who ever would have thought this would happen. Oh well, maybe next time around it will "trickle down". …..