Republican tax scam will not create jobs

U.S. Senate Democrats released a report showing that, rather than growing the economy, the GOP tax plan would instead be an enormous giveaway to massive corporations and the top 1 percent.

A National Bureau of Economic Research study published in 2014 found ‘little evidence that corporate tax cuts boost economic activity’ unless implemented in a recession.

Far from being short on cash, corporations are sitting on record amounts of money stashed overseas simply to avoid paying taxes.

“Since the Senate passage of the Republican tax plan, several major companies have already announced more than $70 billion worth of stock buyback programs that would benefit wealthy CEOs and investors,” said New Jersey Democrat Lisa McCormick, citing the study. “The Republican tax plan prioritizes special interests and provides an incentive for corporate profits over increasing wages and generating jobs for middle-class Americans.”

Despite claims from Republicans in Congress and the Trump administration, top corporate executives have admitted they will use corporate tax breaks for share buybacks and dividends to wealthy stockholders. These corporate tax giveaways will not “trickle down” to American workers.

These new corporate stock buybacks are another indication that the Republican tax plan is a giveaway to the wealthy and big corporations.

“Corporate CEOs have made clear that the massive tax giveaways in the Republican plan will not be passed on to workers but to rich investors – including the wealthy foreign investors who own about a third of the shares in American companies,” said Senator Elizabeth Warren (D-Mass.). “This plan will do nothing to stimulate the economy or raise wages – but it sure will make a bunch of rich guys a lot richer.”

“These corporate rate cuts, and it’s two trillion, will go into share buybacks and dividends and other returns to capital,” predicted David Stockman, OMB Director under President Reagan.

The report detailing the companies that have announced major stock buybacks appears below:

Corporation

 

Share   Buyback Amount
 Announced Since Senate
Bill Passage (Millions)

 Date

  Home Depot

$15,000

6-Dec

  Oracle

$12,000

14-Dec

  Honeywell*

$6,500

8-Dec

  Bank of America

$5,000

5-Dec

  Anthem, Inc.

$5,000

7-Dec

  Boeing**

$4,000

11-Dec

  Mastercard

$4,000

5-Dec

  United Airlines

$3,000

7-Dec

  PPG

$2,500

14-Dec

  American Tower

$2,000

7-Dec

  T-Mobile

$1,500

6-Dec

  Prudential Financial Inc.

$ 1,500

14-Dec

  Waste Management

$1,250

15-Dec

  Edwards Lifesciences

$1,000

7-Dec

  Johnson Controls

$1,000

7-Dec

  Humana

$750

14-Dec

  Hyatt

$750

14-Dec

  JetBlue

$750

13-Dec

  Morningstar, Inc

$500

12-Dec

  Ciena

$ 300

7-Dec

  NVR, Inc

$300

12-Dec

  WESCO

$300

13-Dec

  Fortune Brands

$250

11-Dec

  Trinity Industries

$250

12-Dec

  LINN Energy

$250

14-Dec

  Synopsys

$200

7-Dec

  MSG Networks

$150

8-Dec

  Veeco

$100

11-Dec

  Verifone

$100

  12-Dec

 

  TOTAL Buybacks Of $100  

  Million Or More Since

  Senate Passage of

  Republican Tax Bill

 

 

  $70.2 Billion  

*Subtracts buybacks previously announced from total new announcement. E.g. Honeywell announced a new authorization “to repurchase up to $8 billion of its common stock, including approximately $1.5 billion of remaining availability” – this is counted as $6.5 billion above.

**Boeing announced an $18 billion buyback replacing a previously announced $14 billion buyback program

Senator Chuck Schumer (D-NY) released a statement following after the final version of the GOP legislation came out, saying: “Under this bill the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits. It is just the opposite of what America needs, and Republicans will rue the day they pass this.”

“This bill is an outrage. The idea that slashing taxes for the wealthiest Americans and big corporations will somehow magically result in more money and increased wages for the middle class is pure folly,” said Senator Cory Booker (D-NJ). “Instead of a thoughtfully crafted, bipartisan plan that will truly lift wages and cut taxes for all Americans, Republicans have jammed through a disastrous proposal that lavishes tax cuts on corporations and the wealthiest and raises taxes on everyday Americans. In this perverse plan, the people who need a tax cut the least end up with the most, and those who truly need a tax cut get taken for a ride.”


Connect with NJTODAY.NET


Join NJTODAY.NET's free Email List to receive occasional updates delivered right to your email address!
Email ads@njtoday.net for advertising information Send stuff to NJTODAY.NET Like Us On Facebook Follow Us On Twitter Download this week's issue of NJTODAY.NET
Print Friendly

Leave a Reply