Benefits of US Tax Cut not Trickling Down to Workers

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  • 05 Mar 2018 12:00 AM
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Benefits of US Tax Cut not Trickling Down to Workers, Says Just Capital

The new Republican tax cut is providing a powerful weapon for the law’s supporters and detractors, as well as investors and analysts, who are mining data on how companies are spending their windfalls in a battle to sway the behaviour of voters and executives alike. Whilst Republicans have credited wage increases and worker bonuses to the tax cut Democrats have focused on companies announcing stock buybacks, showcasing that as evidence the bill is benefiting the rich rather than trickling down to workers. Research conducted by Just Capital has highlighted that shareholders of 90 large corporations – including Home Depot, Pfizer and Capital One – are reaping more of the benefits of the law than workers or consumers. Pay or benefit increases for workers account for 6 percent of the savings those companies report from the law, the group calculates, while job creation accounts for 22 percent. More than half of the money going directly to workers takes the form of one-time bonuses, as opposed to permanent raises or benefits.

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The NY Times

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