Data continues to roll in proving that the Republican Tax Scam pushes money to the wealthy. Previously, we reported on the Morgan Stanley study. Now, Bank of America/Merrill Lynch has released data showing that fewer than 45 of the Standard & Poor’s 500 companies have paid out cash bonuses to their employees since the new tax law went into effect. The Republicans celebrated their year-end tax cut bill, which dropped the corporate rate to 21% from 35%, touting it as “tax reform” — which it was not — and claiming the economy would boom as a result with dollars trickling down to workers. (We’ve heard this old story before and it’s never worked.)
While Republicans count up every small employer and big corporation as an “example” of how the wealth is going to workers, real surveys like those from Morgan Stanley and Bank of America/Merrill Lynch prove otherwise. Most of the extra cash from corporate tax savings is going into the pockets of stock shareholders through dividend increases and companies buying back their own stock in hopes of boosting its price. And only 10% of Americans own stocks and can benefit from this boondoggle.
Meanwhile, the deficit is soaring — Republicans can never again claim to be fiscal conservatives. Their tax cut legislation and Trump’s 2019 budget proposal will result in a permanent $1 trillion deficit and a debt that will soar to close to 100 percent of GDP by 2028. Who pays for that?