Trump is Wrong: Analysts Reveals How Little of the Corporate Tax Cuts Will Trickle Down to Workers

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.

Vox reports:

“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.”

 

For the rest of the article, visit Vox.com.

Subscribe to the Nations largest union directory and blog site!


By submitting this form, you are consenting to receive marketing emails from: Senders Communications Group, 21201 Victory Blvd. #235, Canoga Park, CA, 91303, http://www.sendersgroup.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Featured Posts:

Workers Unite…on Screen in NYC!

Billing itself as “a celebration of Global Labor Solidarity,” the Workers Unite Film Festival for its eight edition starting May ...
Read More

MWD Chair is a Woman on the Move

Since the October 2018 election that made her the first African American and the second woman to chair the Metropolitan ...
Read More
The Westin

Leave a Reply