70%
Another day, another report about just how skewed the benefits of the GOP tax scam are towards the wealthiest Americans and corporations. Today, the USA Today Editorial Board detailed how 70% of the windfall from the law is going to shareholders – not working Americans, despite what Republicans are telling you. Key excerpts:
“The tax bill was sold as a way to create jobs and boost stagnant wages. So far, at least, corporations have been showing more concern about shareholders than about employees or the economy as a whole.”
“For one thing, buybacks don't have much direct impact on the economy. This is especially troubling in that Congress estimated that the tax bill would increase deficits by only $1.5 trillion over 10 years, because economic growth would generate $458 billion in new tax revenues. That growth won’t happen if much of the windfall goes into a form of financial engineering that does not do much to increase wages, hire workers or build facilities.”
“In addition to stock buybacks, companies have been doing other things to reward stockholders, including increasing dividends and reducing debt. In a poll by Morgan Stanley, companies said they intended to spend 51% of their windfall on these three things.”
“Nearly 20% would go to mergers and acquisitions, which are, in essence, another form of stock buyback, one in which a company buys shares of a targeted company rather than its own. In fact, mergers tend to bring job reductions as companies seek efficiencies.”
“Add this up, and you get a whopping 70% of the tax windfall going to shareholdersin ways that have little impact on the economy, jobs and wages.”
“Some companies have touted bonuses they have given out. Any bonus is welcome, but the numbers don’t lie. This is a tiny portion of the windfall. And the fact that they gave out one-time bonuses, rather than permanent raises, was telling. Even Goldman Sachs CEO Lloyd Blankfein called the bonuses ‘symbolic’ and ‘not a significant thing.’”
“In the coming years, many of the tax bill’s provisions dealing with ordinary taxpayers are scheduled to expire.”
“For one thing, buybacks don't have much direct impact on the economy. This is especially troubling in that Congress estimated that the tax bill would increase deficits by only $1.5 trillion over 10 years, because economic growth would generate $458 billion in new tax revenues. That growth won’t happen if much of the windfall goes into a form of financial engineering that does not do much to increase wages, hire workers or build facilities.”
“In addition to stock buybacks, companies have been doing other things to reward stockholders, including increasing dividends and reducing debt. In a poll by Morgan Stanley, companies said they intended to spend 51% of their windfall on these three things.”
“Nearly 20% would go to mergers and acquisitions, which are, in essence, another form of stock buyback, one in which a company buys shares of a targeted company rather than its own. In fact, mergers tend to bring job reductions as companies seek efficiencies.”
“Add this up, and you get a whopping 70% of the tax windfall going to shareholdersin ways that have little impact on the economy, jobs and wages.”
“Some companies have touted bonuses they have given out. Any bonus is welcome, but the numbers don’t lie. This is a tiny portion of the windfall. And the fact that they gave out one-time bonuses, rather than permanent raises, was telling. Even Goldman Sachs CEO Lloyd Blankfein called the bonuses ‘symbolic’ and ‘not a significant thing.’”
“In the coming years, many of the tax bill’s provisions dealing with ordinary taxpayers are scheduled to expire.”