Even though their effective tax rates dropped to under 19 percent (roughly 10 points below what they paid in 2016) the banks eliminated thousands of jobs and their lending fell. The people who really benefited were shareholders, who received major payouts due to the savings. Anybody who does just a little research on the so-called "trickle down" effect knows that it's a bunch of bullshit. When corporations receive windfalls from the government (reduced regulations, tax cuts, subsidies etc.) it has been proven time and time again that they just spend the $$$ on stock buybacks, executive bonuses, dividend payments and the like-- not wage increases, new jobs, R&D or production investments. Greed is good.
Wednesday, February 6, 2019
Banks Among the Biggest Beneficiaries of Trump Tax Cut
Now that 2018 is behind us, we are starting to get definitive results on the actual impacts of the Trump tax cut. It should come as no surprise that big banks have proven to be some of the biggest beneficiaries of the Trump tax cut. Bloomberg reports that, in total, major U.S. banks got about a $21 billion break on their taxes last year. And what did they do with that huge cash windfall? Like corporate America, not much for everyday folks.
Even though their effective tax rates dropped to under 19 percent (roughly 10 points below what they paid in 2016) the banks eliminated thousands of jobs and their lending fell. The people who really benefited were shareholders, who received major payouts due to the savings. Anybody who does just a little research on the so-called "trickle down" effect knows that it's a bunch of bullshit. When corporations receive windfalls from the government (reduced regulations, tax cuts, subsidies etc.) it has been proven time and time again that they just spend the $$$ on stock buybacks, executive bonuses, dividend payments and the like-- not wage increases, new jobs, R&D or production investments. Greed is good.
Even though their effective tax rates dropped to under 19 percent (roughly 10 points below what they paid in 2016) the banks eliminated thousands of jobs and their lending fell. The people who really benefited were shareholders, who received major payouts due to the savings. Anybody who does just a little research on the so-called "trickle down" effect knows that it's a bunch of bullshit. When corporations receive windfalls from the government (reduced regulations, tax cuts, subsidies etc.) it has been proven time and time again that they just spend the $$$ on stock buybacks, executive bonuses, dividend payments and the like-- not wage increases, new jobs, R&D or production investments. Greed is good.
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