Wednesday, August 1, 2018

The Trump Tax Scam Hurting Workers

The Republican-led tax overhaul has not lived up to its promise of helping the average worker. Republicans, when pushing for the tax scam, said business would soar & the average worker would like the increase in their paycheck. The commitment that companies would hire new workers and possibly open new locations hasn't happened yet. Tax overhauls for the wealthy rarely boost economic growth for workers. The first thing companies promise not to do, yet do, is stock buybacks. Companies buyback shares, whereby notably artificially inflating the stock market. In simpler terms: companies give themselves massive bonuses. Corporations, who over a significant period of time, increase buybacks to the point they are the primary buyer of stocks. The problem is this practice has a tendency to self-cannibalize.

Additionally, Trump's draconian tariffs on aluminum, among other items, is counterproductive and effectively a tax on consumers. As discussed later, playing with tariffs is an idiots gamble. As the Los Angeles Times explains: Trump tariffs are more likely to kill U.S. jobs than create them, Fed economists say

The opposite of business growth has taken place. Toy R US closed all facilities. Walmart has closed or is closing hundreds of stores nationwide. Harly Davidson is on the verge of cutting 800 jobs, after receiving their tax cut.

Yahoo Finance

While Trump touts economic success, the devil is in the details. Is unemployment low, yes. However, most of these jobs are low wage and part-time jobs, which do not include benefits.
The economy, on the surface, looks vibrant (thanks, Obama!), but wages remain stagnant and in some cases dip.

Think Progress reports:

So far, the Trump tax cuts mainly helped boost corporate earnings. With companies engaging in stock buybacks, artificially inflating the market, the average worker has not reaped any of this massive transfer of wealth from the middle class to the top ten percent.

Begrudgingly, the federal government conceded the average workers' wages remain stagnant. The truth is,(all things considered) American workers hourly earnings decreased 0.1 percent, which could be seasonal, nonetheless, the tax scam wasn't meant to help you. Wealthy corporations and top earners reap the windfall of free cash, while the worker's wages fall, in some instances.

The progressive publication Think Progress reports,  

Working more extended hours doesn't translate to higher pay. Yet. The Trump administration attributes folks working extended hours to a boost in wages, which is dishonest.

Adding the disastrous tax scam with Trump's tariffs, which are a tax on the consumer, the economy hovers in limbo for some businesses. Coca-Cola, for example, had to raise the cost of its products because of Trump's aluminum tariffs.  

Tariffs will cost Caterpillar $200 million, so it's going to raise its prices: CNBC

OK, so how does this tax cut hurt the average worker besides lower wages? For tax cuts, the cash for such transfer of wealth to top earners impacts programs for poor mothers, anti-poverty programs. The government has to get the money back from the average worker; to fund essential government programs. Right after the tax scam passed, Speaker Paul Ryan said the next goal was "entitlement reform," which mainly hurts the destitute. Instead of lower child care for the working poor, Ryan plans to slash these programs. For Medicaid recipients, Paul Ryan plans to gut health care for your kids. Oh, and Medicare & Social Security, those programs aren't immune from cuts.

The Republican-led Congress has their eyes set on increasing the age of eligibility for Social Security; slashing disability insurance; gutting long-term unemployment programs. If you don't know, you pay into most of these programs. Look at your pay stub. Republicans aren't just giving to the rich, they are robbing you.

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