http://money.cnn.com/2018/02/16/investing/stock-buybacks-tax-law-bonuses/index.html
Sunday, February 18, 2018
Tax cut scoreboard: Workers $6 billion; Shareholders $171 billion
This article basically talks about the Trump administration's tax cuts that have resulted in a net surplus of 141 billion dollars to shareholders of major companies in comparison to just 6 billion dollars for workers wages and benefits. The main argument is of course that corporate tax cuts by President Trump has resulted in massive stock buybacks on Wall Street and it is the shareholders, not the workers that are the bigger winners of this policy change. Some of the major companies that have been part of this buyback campaign are Cisco, Wells Fargo, Pepsi, Amgen, Alphabet, and Visa. It also mentions that these companies have actually brought back offshore investment into the country that was valued roughly around 2 Trillion Dollars. The positive side of this policy is that workers can benefit in the long run when companies invest their tax cut earnings for new jobs and positions but at this point, the clear winners are the shareholders and not the workers.
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2 comments:
These are really eye-opening statistics. It is a classic case of the rich getting richer and the poor getting poorer. It is neat to see some large companies reinvesting their savings into the economy, however. Overall, I feel that this tax cut could lead to more income inequality throughout the US in the long run.
I agree with the fact that these tax cuts are creating more income inequality because the stockholders are the ones that are getting more benefits from this and even if employers are getting some it's clearly much less than the stockholders. Also, this tax cuts are going to make the government lose a lot of income, which means that many government programs that try to decrease the income inequality by giving to the poor with these programs, that now will have to be stopped or will have a smaller budget because of these income taxes that might help the economy as a whole by getting more money reinvested, but is creating a bigger problem of inequality and possibilities for the poor people in the future that are not going to get as much help from the government.
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