One of President Trump’s major campaign promises, both in his original presidential campaign and during his midterm stump speeches, was the idea that he was going to “bring back jobs” to Americans who have been pushed out of work by globalization and automation. Republicans pitched their tax cuts as another way to do that, by giving corporations more money to indirectly fund their hiring. According to a new examination of the policy’s effects by the New York Times, that strategy didn’t work. In fact, companies actually cut more jobs more enthusiastically after the tax cuts.
Much of the “growth” promised by the tax cuts has taken the form of companies like Google, Facebook, and Goldman Sachs investing their money in technology. As a way to boost hiring, the tax cuts have unequivocally been a bust.
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Most disappointing, and least surprising, is the effect that the tax cuts have had on actual workers. Even at the companies who promised to give some of their new wealth to their employees, the actual benefits workers saw were minor. Nonprofit researchers Just Capital estimate that a typical worker saw a salary increase or bonus totaling just $225 for the year.
But what about the jobs?!? Just Capital reports that since the tax cuts, the 1,000 biggest public companies have cut 140,000 jobs, which is double the 73,000 they say they created. The analysis found that most of those cuts came from the service industry. Wages, meanwhile, grew by only .5 percent, one point slower than the .6 percent growth of the economy as a whole.
[Source]
You can find the original story here (but it might be behind a paywall for some people):
Trump’s Tax Cut Was Supposed to Change Corporate Behavior. Here’s What Happened.
Basically, Trump and Republicans promised you more jobs and pay raises if you supported Trump's tax cut. Even several large corporations got into the act and said they'd use the money to hire more people and give raises to their employees.
But what really happened?
Corporations have laid off more people than they've hired, and -- on average -- given at best only tiny raises to their employees.
Instead of doing what they promised to do, the corporations have used the tax cuts mainly to make their senior executives and shareholders richer.
Moreover, the tax cuts for the middle class were made to expire in a few years while the tax cuts for the corporations and uber-rich were made permanent.
And now, Mitch McConnell and other Republican leaders are saying they must make cuts to social security, medicare, medicaid, and food stamps to pay for Trump's tax cut. Those are services the rich don't need --- so why not cut them rather than cut multi-billion dollar subsidies to corporations? That's how the Republicans are reasoning.
Questions? Comments?