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Three Takeaways From New Report on GOP Tax Giveaway: “Windfall” for Big Corporations That Have “Not Made Good” on Promises to Invest in Workers

Thanks to Republicans’ Tax Giveaway, “Companies Have Spent Nearly Three Times as Much on Additional Dividends and Stock Buybacks… Than on Increased Investment.”

A new report from the New York Times confirms that Republicans’ tax giveaway is a boon for big corporations that hasn’t benefited workers. When Republicans pushed their tax scam through the Senate in 2017, they promised it would boost the economy. But two years later, it’s clear the biggest beneficiaries of Senate Republicans’ reckless giveaway aren’t the workers most in need of a raise, but the big corporations that saw their tax bills go to zero as a result.

Here are the top takeaways from the latest report on the GOP’s corporate tax giveaway:

1. It’s a “windfall” for big corporations:

“Companies have already saved upward of $100 billion more on their taxes than analysts predicted when the law was passed. Companies that make up the S&P 500 index had an average effective tax rate of 18.1 percent in 2018, down from 25.9 percent in 2016, according to an analysis of securities filings. More than 200 of those companies saw their effective tax rates fall by 10 points or more. Nearly three dozen, including FedEx, saw their tax rates fall to zero or reported that tax authorities owed them money.”

2. However, they aren’t investing that benefit back into their workforce:

“Much of its savings have gone to reward shareholders: FedEx spent more than $2 billion on stock buybacks and dividend increases in the 2019 fiscal year, up from $1.6 billion in 2018, and more than double the amount the company spent on buybacks and dividends in fiscal year 2017… This year, the company cut back employee bonuses and has offered buyouts in an effort to reduce labor costs in the face of slowing global growth. The company has also added to its pension fund, a move that carried the benefit of reducing its tax liability even further.”

3. Republicans’ tax giveaway isn’t living up to its promise — because the problem they bragged about fixing wasn’t a problem at all:

“…economists say the fizzle is predictable because high tax rates were not holding back investment.”

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