Yesterday, Vox reported that while the Republican tax plan has “been a major windfall for corporations and the wealthy,” new data shows it has done nothing to boost wages for workers. A new chart from Bloomberg shows that “between the first and second quarters of 2018 — after the tax cuts were enacted — real wages fell by 1.8 percent.”
When Republicans delivered $1.5 trillion in tax cuts last December and slashed the corporate tax rate from 35 percent to 21 percent, they said it would come with a big wage boost for American workers. Except it hasn’t.
Over the weekend, this chart from Bloomberg showing private data from PayScale’s wage index swept across Twitter. It shows a drop in wages in the second quarter of the year.
…And between the first and second quarters of 2018 — after the tax cuts were enacted — real wages fell by 1.8 percent.
…According to the BLS, wages and salaries increased by about 2.7 percent year over year in the first three months of 2018. That’s pretty much in line with inflation. And even as unemployment levels are historically low, worker pay isn’t rising.
It’s not that corporations don’t have more money — it’s that they have no particular reason to give that money to workers.
The Republican tax bill has been a major windfall for corporations and the wealthy.
…American corporations are showering their shareholders with stock buybacks, thanks in part to their tax savings, and have returned nearly $700 billion to investors this year.
…Some Republicans have even admitted that the tax cuts aren’t the boost to workers they promised. Sen. Marco Rubio (R-FL) this spring said there is “no evidence whatsoever that money’s been massively poured back into the American worker.”
…Further complicating the matter for the GOP: Trump’s trade war, which could wipe out the benefits of the tax bill altogether, including any potential boosts to wages. Former top Trump economic adviser Gary Cohn said in a June interview that the White House’s tariff battle could increase inflation and consumer debt and erase any positives from the tax cuts.[…]