By Sahid Fawaz
Trump promised that the tax cuts would trickle down and benefit workers tremendously. Companies themselves, however, are saying that won’t be the case and that corporations and investors will reap most of the rewards.
“President Donald Trump propelled himself to the White House in part by promising to revive American manufacturing and deliver high-paying jobs to that industry’s workers. One plank of his plan for accomplishing that goal was the $1.5 trillion tax cut bill Republicans passed in December. That legislation, however, is on track to be much more beneficial to shareholders than it is workers across all sectors — and perhaps especially in manufacturing.
On Thursday, Morgan Stanley analysts said they expect companies in general to pass just 13.2 percent of tax cut savings directly to workers, while 42.9 percent will go to share buybacks and dividends, which largely benefit shareholders and executives who hold large amounts of their companies’s shares. In manufacturing, the split is even more drastic: Analysts think 46.7 percent of tax savings will go to buybacks and dividends, while just 8.9 percent will go to worker pay.”
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