Title : WHO IS REALLY BENEFITTING FROM THOSE TRUMP/RYAN TAX CUTS?
link : WHO IS REALLY BENEFITTING FROM THOSE TRUMP/RYAN TAX CUTS?
WHO IS REALLY BENEFITTING FROM THOSE TRUMP/RYAN TAX CUTS?
TRUMP’S TAX CUTS DIDN’T BENEFIT U.S. WORKERS, MADE RICH COMPANIES RICHER, ANALYSIS FINDS
By: Nicole Goodkind
Newsweek
10 April 2018
President Donald Trump’s corporate tax cuts might not have trickled down to American workers in the way that he suggested they would.
Trump and Republican leadership have long touted their tax cuts as a massive boon to America’s working class, if not through direct tax reductions or refunds, then through the trickle-down effect of bonuses and wage increases from their employers who receive massive corporate cuts. “Tax reform is working,” Republican House Speaker Paul Ryan said in January, mentioning Apple’s decision to reward a bonus of $2,500 in stock grants to some Apple employees. “Workers are coming home and telling their families they got a bonus, or they got a raise or they got better benefits.”
But a new analysis of all Fortune 500 companies found only 4.3 percent of workers will receive a one-time bonus or wage increase tied to the business tax cuts, while businesses received nine times more in cuts than what they passed on to their workers, according to Americans for Tax Fairness, a political advocacy group devoted to tax reform. The analysis also found that companies spent 37 times as much on stock buybacks than they did on bonuses and increased wages for workers.
The study looked at corporate data, news reports and independent analyses of the top companies in the United States, which represent more than two-thirds of the gross domestic product, and analyzed changes in wages and share buybacks since the announcement of the Republican tax plan in December.
“There are too many disingenuous claims that the Trump and Republican tax cuts for corporations will trickle down to the middle class,” said Frank Clemente, executive director of Americans for Tax Fairness. “President Trump and Republicans gave huge tax cuts to big drug companies, big oil and other corporations, but corporations are giving back little—if anything—to working families,” said Clemente. “In fact, this [analysis shows] that 433 corporations out of the Fortune 500 have announced no plans to share their tax cuts with employees.”
The newest projections by the nonpartisan Congressional Budget Office found that the Republican tax plan led to, in part, a 2018 deficit $242 billion higher than previously estimated.
Roughly 36 percent of Americans approve of the Republican tax cuts, according to a March Quinnipiac University Poll and a CNBC poll found that 52 percent of working adults said they had not seen a change to their paychecks since the cuts were passed.
In January, Treasury Secretary Steven Mnuchin said 90 percent of all working adults would see increases in their paychecks because of the cuts.
NOTE: Here's the "new analysis" by Americans for Tax Fairness referenced above:
KEY FACTS: HOW CORPORATIONS ARE SPENDING THIER TRUMP TAX CUTS
Claims that corporations are sharing a big slice of their huge Trump tax cuts with employees through bonuses and wage hikes are mostly hype, the “Trump Tax Cut Truths” website of Americans for Tax Fairness (ATF) shows.
The data on this website primarily covers Fortune 500 companies, whose revenues are two-thirds of the entire U.S. economy (GDP). But the universe is all Fortune 1000 corporations and businesses not on the Fortune 1000 that are included in the List of Tax Reform Good News maintained by Americans for Tax Reform.
Data estimates are based on information from corporations, the media, independent analysts or ATF research and cover activities since the tax law was passed on December 20, 2017. See the Methodology explanation for more details.
HOW ALL OF AMERICA’S BUSINESSES ARE SPENDING THEIR TRUMP TAX CUTS
- 4.2% of workers are getting any one-time bonuses or wage increases from their employers. Just 6.5 million workers are getting a one-time bonus and/or a wage hike tied to the business tax cuts. The total U.S. workforce is 155 million, per the Bureau of Labor Statistics. [Source: Topline Corporate Data spreadsheet]
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- 5.4 million are getting bonuses and 1.9 million are getting a wage hike; some number are getting both.
- Just 398 businesses are providing their workers with one-time bonuses and/or wage hikes for which the cost has been announced or is able to be estimated. There are 26 million U.S. businesses, per the Tax Policy Center.
- Corporations are getting 11 times as much in tax cuts as they are giving to workers in one-time bonuses and in wage hikes. 153 companies have been identified as receiving $75.8 billion in total tax cuts. That compares to $6.9 billion in one-time bonuses and wage hikes identified as going to workers.
- Corporations are spending 60 times as much on stock buybacks as they are spending on workers’ bonuses and wages. Authorizations for stock buybacks, which overwhelmingly benefit the wealthy, have increased by $409 billion since the tax law was passed, while workers are getting $6.9 billion in one-time bonuses and wage increases.
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- The richest 1% own 40% of all stock; the richest 10% own 84%. [National Bureau of Economic Research/Washington Post] Stock buybacks waste money that could be used for useful investments, creating jobs and higher pay.
- A total of 138,864 private-sector job cuts have been announced at 210 companies since the tax law was passed by Congress. [Job cuts spreadsheet] The actual job-loss total is higher, but some big companies, including Amazon and Wells Fargo, have not offered precise figures in their layoff announcements.
HOW AMERICA’S 500 RICHEST CORPORATIONS ARE SPENDING THEIR TRUMP TAX CUTS
- Corporate Cheapskates: 432, or 86%, of Fortune 500 companies have not said publicly whether they are giving any bonuses or wage increases to their employees due to their tax cuts. [Corporate Cheapskates spreadsheet]
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- Among the list of cheapskates are ExxonMobil, UnitedHealth Group, General Motors, Ford, Amazon, General Electric, Walgreens, Chevron, Boeing, Microsoft, Citigroup, IBM, Target, Aetna and UPS.
- Fortune 500 companies’ revenues were $12.1 trillion in 2016, or two-thirds of the entire U.S. economy (GDP). [Fortune]
- Just 66 Fortune 500 corporations, or 13%, are providing one-time bonuses and/or wage hikes to their workers for which the cost has been announced or is able to be estimated.
- Fortune 500 corporations are getting 12 times as much in tax cuts as they are giving to workers in one-time bonuses and in wage hikes. 107 companies are getting a total of $72.0 billion in tax cuts, compared with $6billion in one-time bonuses and wage hikes for workers.
- Fortune 500 corporations are spending 58 times as much on stock buybacks as they are spending on workers’ bonuses and wages. 84 companies have increased their stock buybacks by $347 billion since the tax law was passed, while workers are getting $6 billion in one-time bonuses and wage increases.
ADDITIONAL DATA
EMPLOYEE BONUSES
- 353 corporations, 49 from the Fortune 500, have announced they are giving one-time bonuses due to the tax cuts for which we are able to estimate the cost.
- ATF estimates that 5.4 million workers are getting $4.4 billion in one-time bonuses (including stock grants), ranging from $50 to $6,000 per employee. Most of the bonuses are $1,000. [Employee Bonuses spreadsheet]
WAGE INCREASES
- 116 corporations, 26 from the Fortune 500, are raising base wages, to levels ranging from $11 to $16.
- ATF estimates that 2 million workers are getting wage hikes worth a total of $2.5 billion this year. [Wage Increases spreadsheet]
FRINGE BENEFITS & PENSION CONTRIBUTIONS
- 80 corporations, 32 from the Fortune 500, have announced enhancements to employee benefits, such as increasing 401(k) matches, instituting or improving parental and sick leave benefits, or increasing job training. [Fringe Benefits spreadsheet]
- 12 corporations, 11 from the Fortune 500, have announced that they are making “voluntary” contributions to defined benefit contribution plans, or they are “accelerating pension funding.” Such expenditures are not new or additional benefits: they fulfill obligations companies have already made to their employees and are often made because the pension plan is underfunded. [Pension Contributions spreadsheet]
NEW INVESTMENTS
- 73 corporations, 28 from the Fortune 500, have announced they are planning to make “new investments” due to the tax cuts. However, ATF’s review of some of the largest promised investments indicate that many are nothing new. For instance, of the $470 billion in “new investments” recorded in the New Investments spreadsheet, a total of $435 billion is by three companies—Apple, Comcast and ExxonMobil. A close examination of their “investments” in the Corporate Stories section of this website indicate these claims are unlikely to be due to the tax cuts.
AND THERE YOU HAVE IT!
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