US Workers as Usual Left Holding the Bag

Well the results are in and it turns out that Trump’s 2017 Tax and Jobs Act was a big failure as far as benefits to workers were concerned.  The Trump administration continually bragged about how the tax overhaul would boost the economy and would bring the average American household, “around a $4000 pay raise.”  While it did boost the economy’s growth, the workers were left holding the bag,  because the major part of the $150 billion tax cut, the biggest in U.S history, given to corporations in 2018, went to shareholders’ dividends and stock buy-backs.  Both of which simply lined the pockets of 10% of the Americans who own 84% of the stocks.

 

While stories about many corporations increasing wages and giving bonuses filled the airways after the announced tax cuts, the impact to most workers was minimal once the dust settled.  In fact, the conclusion of a six month study by the Center for Public Integrity, a not-for-profit agency in Washington, D.C., indicated that only 6% of the tax cuts given to corporations were actually spent on workers.

Workers received an average paycheck raise from corporations and businesses of $6.21 or $233 a year coupled with another 3.5% from reduced tax taken by the feds.  While no one “should look a gift horse in the mouth,” the majority of one’s increase in take home salary was not due to the corporations and businesses returning their tax savings to workers as President Trump and his economists had advocated; and certainly no average increase of $4000 a year for the American workers.   Additionally, instead of the  tax break paying for itself as also promised by the President, it has increased the national debt by over 17% or $1 trillion.

So enjoy your 3.5% because sooner or later that debt will have to be paid and it will fall on the backs of all of us.  Does this sound like the soul of the Republican party mantra that for years has advocated for a reduction in the national debt coupled with fiscal responsibility?  All this appears to be just more smoke and mirrors which Trump is counting on to carry him to re-election.