When the Republican tax cuts were proposed last October, Trump and Ryan stated that cutting the corporate tax rate from 35 percent to 20 percent would result in a $4,000 to $9,000 jump in America’s average household income. Wow, an economic plan that raises income of workers.
According to Kevin Hassett, chairman of Trump’s Council of Economic Advisers, the tax cuts were also to bring back jobs from overseas. Companies would be reinvesting the tax savings in expanded operations in the USA.
Money would be trickling down from the rich, like a waterfall, to the working class. And, another Republican tricke down economic program would be imposed on the American worker in a system that has never been successful.
Although large corporations have been provided an infusion of money by this tax bill, no company is proposing salary or benefit increases for employees. In fact there is no reason to believe companies will use a significant part of their tax savings for raises or reinvestment. However, several companies have agreed to employee bonuses.
U.S. Corporations are gaining weath through this tax plan while salaries are not increasing, pensions are disappearing and healthcare benefits are decreasing. Since this windfall of government cash is being spent on buybacks and dividends and not to create jobs or increase worker pay – this program is a fraud.