As even one member of the Republican Party was forced to admit earlier this week, President Donald Trump’s $1.5 trillion tax cut has done virtually nothing for the vast majority of American workers—but evidence continues to roll in that it has been a massive boon for the largest corporations.
“This is more proof that the Trump tax scam was never meant to benefit workers. It was designed to benefit the wealthy, rich CEOs, and big corporations.”
—Americans for Tax Fairness
According to new data compiled by S&P Dow Jones Indices, America’s biggest and most profitable companies are on track to hand “a record $1 trillion to investors through dividend increases and stock buybacks.”
A major example of companies using their tax savings to buy their own stock instead of boosting investment or giving workers raises came on Tuesday, when Apple announced it would be spending $100 billion on buybacks, which the New York Times reports is “by far the largest increase in its already historic record of returning capital to investors.”
As Americans for Tax Fairness (ATF) noted in response to the company’s announcement, $100 billion is 333 times the amount it has given workers in the form of one-time bonuses.
“This is more proof that the Trump tax scam was never meant to benefit workers,” ATF tweeted on Tuesday. “It was designed to benefit the wealthy, rich CEOs, and big corporations.”
Apple’s announcement comes on the heels of a slew of giddy profit reports by Wall Street banks, which have already raked in billions thanks to the Trump-GOP tax cuts.
Contrary to repeated promises from Republicans and the Trump administration that the tax law would spur a wave of new investment, the Times reported on Monday that “hard evidence” of a massive investment boost has yet to appear, while there is plenty of evidence that companies are following Apple’s lead and dumping their tax savings into the pockets of ultra-wealthy executives.
“Trump and GOP lawmakers said the huge corporate tax cuts were going to be ‘rocket fuel’ to increase corporate investment,” wrote author and labor reporter Steven Greenhouse on Tuesday. “So far the tax cuts have been rocket fuel for just one thing: a surge in stock buybacks, making the rich even richer.”