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Wednesday, May 29, 2019

NO WAGE BENEFIT FROM TAX CUTS

THE REAL TRICKLE DOWN EFFECT
According to a new analysis by the nonpartisan Congressional Research Service (CRS), despite lofty promises from President Donald Trump and the Republican Party, the $1.5 trillion in tax cuts that went into effect last year have done little—if anything—to raise workers' wages, boost economic growth, or spur business investment.

While the Republican tax law has not done much for workers or the overall economy, it has sparked a wave of stock buybacks, which primarily benefit rich executives.

"There is no indication of a surge in wages in 2018 either compared to history or relative to GDP growth," the congressional research arm found, a conclusion that is consistent with recent survey data showing Americans have not seen a paycheck boost from the Trump tax cuts.

The CRS report  suggested that worker bonus announcements by major corporations immediately following the passage of the GOP tax bill in 2017 may have been little more than "a public relations move."

https://www.commondreams.org/news/2019/05/29/virtually-no-wage-growth-surge-stock-buybacks-study-offers-more-proof-trump-tax-cuts
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2 comments:

  1. Anonymous10:14 am

    Given the working class do not pay income tax this should come as no surprise. The SP's argument ( along with Smith, Ricardo and Mill ) is sound.

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  2. ajohnstone11:09 am

    The point of the post was that the politicians justified tax cuts FOR the rich would result in more money to re-invest, lifting employment levels, and ALSO raise employee wages. Neither happened significantly.

    There was no reference to any change in the income tax rates that workers themselves "paid".

    ReplyDelete