Thursday, April 12, 2018

Corporations Have NOT Shared Their Tax Cuts With Workers


The following is part of an op-ed in USA Today by multi-millionaire venture capitalist Nick Hanauer. He is one of the few one-percenters who will tell you the truth about the Trump/GOP tax cuts (and the "trickle-down" economic lie).

In selling you their trickle-down tax plan, President Trump and congressional Republicans promised you a $4,000 pay raise. 
"This change, along with a lower business tax rate, would likely give the typical American household around a $4,000 pay raise," Trump said in October.
At least $4,000,” House Speaker Paul Ryan emphasized in a post on his official website. 
So now that rich people like me have gotten our billions of dollars in tax cuts, you might be wondering where your $4,000 raise is.
Spoiler alert: You’re not getting one.
Take it from someone who has helped run three dozen companies: Businesses don’t give raises because they can. Businesses give raises when they have to. They give raises when they fear losing employees to a competitor, or when the government requires them to through minimum wage laws. But businesses don’t give raises just because they got a tax cut. Businesses pay you what you can negotiate. And few employees in today’s economy have the leverage to negotiate.

So that $4,000 raise Republicans talked about to sell their tax cuts? It was just a trickle-down lie. For decades, trickle-downers have relentlessly promised that if the government cut taxes on corporations and rich people like me, our windfall profits would eventually trickle down to everyday Americans in the form of higher incomes and more jobs. “A rising tide lifts all boats,” they tell you. But the truth is, these trickle-down policies do nothing but make the rich richer.

So that $4,000 raise Republicans talked about to sell their tax cuts? It was just a trickle-down lie. For decades, trickle-downers have relentlessly promised that if the government cut taxes on corporations and rich people like me, our windfall profits would eventually trickle down to everyday Americans in the form of higher incomes and more jobs. “A rising tide lifts all boats,” they tell you. But the truth is, these trickle-down policies do nothing but make the rich richer. . . .

According to the Academic-Industry Research Network, S&P 500 companies announced $158 billion in stock buybacks in the weeks following the tax cuts, compared with $3.7 billion in one-time bonuses and only $1.5 billion in annual wage increases.

So much for that rising tide.

Here’s the reality: If Trump wanted to give you a raise, he wouldn’t rely on trickle-down lies to do it. A mere $2 increase in the minimum wage would give millions of hardworking Americans a $4,000 raise. A modest updating of our overtime regulations would give a $4,000 raise to tens of millions more.

And of course, if Trump really wanted to put $4,000 in Americans’ pockets, he could have instead given those trillions of dollars in tax cuts directly to people like you, instead of giving them to your boss.

Take it from a successful businessman: Your boss isn’t going to give you a $4,000 raise. And here’s the thing: You can’t fire your boss. But you can fire all those lying politicians who promised you a $4,000 raise. And the best news is, you can do it as soon as November.

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