NEW DATA: GOP Tax Scam Has Limited Impact on Workers' Wages
Survey after survey reveals working Americans are barely seeing benefits – if any – from the tax scam, while S&P 500 companies are reaping almost $1.64 trillion in tax breaks, thanks to the GOP’s reduction of the corporate tax rate from 35 to 21 percent.
And instead of creating jobs and increasing workers’ wages, companies have shipped jobs overseas and bought back their own stock in record amounts. From the Wall Street Journal:
U.S. companies are putting savings from the corporate tax cut to use, but only a fraction of it is flowing to employees’ wallets, new data show.
In the months after the December tax-code overhaul that lowered the corporate rate to 21% from 35%, dozens of companies such as Walmart Inc. and FedEx Corp. announced one-time bonuses and wage increases for hourly workers. Those moves earned praise from the Trump administration as evidence the cuts were quickly reaching many Americans.
Now, various surveys indicate that most companies aren’t passing the money directly to employees.
A new survey of 152 companies by executive-recruitment firm Korn Ferry International revealed 14% were putting part of their tax-cut savings into base salary increases. A poll of 1,500 companies by consulting firm Mercer LLC showed 4% are redirecting tax savings to budgets for bigger paychecks in the coming year. And in a survey of more than 1,000 companies published by human-resources consulting firm Aon PLC, 99% said the tax cuts weren’t prompting them to increase minimum wages.
“They’re doing everything they can to avoid seeing their permanent payroll go up,” said Bill Ravenscroft, senior vice president at Adecco Staffing, which recruits workers for companies.
Despite the flurry of high-profile bonus announcements following the tax-code overhaul, the survey found such lump-sum payments weren’t ubiquitous. Less than 10% of the companies said they planned to dole out one-time bonuses over the next year, or had already done so, because of the tax cuts.
AT&T Inc. paid a one-time bonus of $1,000 to about 200,000 U.S. employees after the tax-code changes became law, but didn’t announce pay raises linked to the tax changes … In a September interview, Chief Executive Randall Stephenson said AT&T awarded the bonuses, in part, to show employees the benefits that corporate tax cuts would pass on to labor, capital investments and the like. “It was a civics lesson,” he said.
Instead of standing on the side of hard-working Americans, House Republicans last week forced a vote on their GOP tax scam for the rich 2.0 – which makes permanent the billions of dollars in tax breaks for the wealthiest few and adds trillions more to the deficit in the coming years.
With every passing day, the GOP priority becomes more clear: to sell out Medicare, Medicaid and the middle class to further enrich big corporations and the top 1 percent. Meanwhile, Democrats are fighting for real, bipartisan tax reform that creates jobs, reduces the deficit and is For The People.