NEW: Moody’s Says GOP Tax Scam “More Likely to Reward Shareholders… Much of the Tax Cut for Individuals Will Go To High Earners”
A new analysis by Moody’s Analytics warns of “a number of negative consequences” resulting from the Republican tax scam that was signed into law last year, including the majority of tax cuts going to individuals earning more than $200,000 a year, state and local governments “struggling” to pay for services, and increasing the cost of owning a home. From the report:
“Companies are more likely to reward shareholders than invest in growth, and the tax cut for the rich will not trickle down.”
“We do not expect a meaningful boost to business investment because U.S. nonfinancial companies will likely prioritize share buybacks, M&A and paying down existing debt… Much of the tax cut for individuals will go to high earners, who are less likely to spend it on current consumption.”
From Democratic Senatorial Campaign Committee Spokesman David Bergstein: “This is another piece of evidence reinforcing what Americans already know about the GOP tax scam: it’s a handout to corporations that ship jobs overseas to places like China, the well-connected, and the wealthiest few – while hardworking Americans face higher taxes and layoffs. Republicans’ own polling shows voters hate their tax scam, and GOP Senate candidates will pay the price for it in November.”
Here’s what else voters are reading about the GOP tax scam’s effect on the economy:
Indianapolis Star: AT&T, touting bonuses and investment fueled by tax reform, quietly lays off thousands.
CNN Money: Only a small slice of corporate America has shared tax savings with workers so far.
New York Times: Tax Law May Send Factories and Jobs Abroad, Critics Say.
Reuters: Corporations may dodge billions in U.S. taxes through new loophole: experts.
Axios: Health care companies are thrilled about the tax overhaul.
CNBC: US firms will now focus on stock buybacks after tax cuts, David Rubenstein says.
CNBC: Few large US companies say they’ll use tax savings to boost wages, CNBC survey finds.
Associated Press: Bank execs sing praises of new tax law as windfall looms.
New York Times: Banks Are Big Winners From Tax Cut.
Yahoo: Tax cuts are going to keep being a boon to the shareholder class.
Bloomberg: “Companies Reap Their Tax Windfall”.
New York Times: Bonuses Aside, Tax Law’s Trickle-Down Impact Not Yet Clear.
Philadelphia Inquirer: Comcast quietly fired hundreds in direct sales before Christmas.
Indianapolis Star: Carrier plant to lay off 215 workers on Thursday.
Business Insider: Walmart is abruptly closing 63 Sam’s Club stores and laying off thousands of workers.
USA Today: Kleenex, Huggies maker to cut up to 5,500 jobs, close 10 plants.