Maine Writer

Its about people and issues I care about.

My Photo

I enjoy writing!

Monday, February 12, 2018

Republican tax cuts for the rich ~ profit$ realitie$


Analysts expect 13 percent of business tax-cut savings to go to workers (Anybody who truly believed the tax cuts passed by Republicans would help the middle class must also believe there is a pot of gold at the end of every elusive rainbow.)

The Hill article by Luis Sanchez

A survey released this week shows that analysts expect only 13 percent of companies' savings from the new tax law to go to workers in the form of bonuses, raises and employee benefits.

Morgan Stanley analysts predict that 43 percent of the savings will end up in the hands of investors in the form of stock buybacks and dividends ~

Morgan Stanley analysts expect companies to pass only 13% of Trump tax cut savings directly to workers, vs 43% to share buybacks.

For manufacturers, it's 9% / 47%.

The analysts' prediction echoes one of critics' main issues with the GOP tax-cut legislation signed into law by President Trump — that much of the savings for companies will not immediately be passed on to workers.

According to data released by the White House earlier this month, more than 300 companies have already announced tax law-related bonuses, raises or improved employee benefits to be provided to more than 3.5 million American workers.
Critics argue that this is still a small fraction of the 125.5 million Americans who are employed by a company.

House Minority Leader Nancy Pelosi (D-Calif.) said the tax law bonuses are “crumbs” compared to the bonuses going to companies, a contention that the Trump administration has rejected.

Among specific industries, Morgan Stanley analysts predict that manufacturing companies will only allocate 9 percent of their tax savings for their workers.

Republicans argue that workers will see many benefits as a result of the new tax law, with Trump saying in his State of the Union address last month that American households will see on average a $4,000 increase in their income because of the law.

CNN noted that most economists predict that workers* — unlike shareholders — won't immediately see the biggest benefits of the tax law. But in the long run, they could gain if corporations use savings to invest in their companies, creating more jobs and eventually higher wages.

*MaineWrtier ~ I'm not sure if "economists" factored in the increasing cost of health care, premiums and medical services copay$, into their fiscal predictions.  IMO, although not an economist but as a nurse, any modest gains seen by the *tax cuts for the rich* will be offset by the increases in paying for medical care.

Labels: , , ,


Post a Comment

<< Home