Who would have guessed this guy could have been so wrong about workers’ pay?
The bulk of the $150bn the tax cut put into the hands of corporations in 2018 went into shareholder dividends and stock buy-backs, both of which line the pockets of the 10% of Americans who own 84% of the stocks.
Just 6% of the tax savings was spent on workers, according to Just Capital, a not-for-profit that tracks the Russell 1000 index.
In February 2018, The New York Times took notice of research then underway, reporting that “the nonprofit research group Just Capital will release one of the most detailed accountings to date: a ranking of companies on how much of their tax windfalls are going to workers, customers, communities and shareholders.”
The group’s initial findings suggest shareholders of 90 large corporations — including Home Depot, Pfizer and Capital One — are reaping far more of the benefits of the law than workers or consumers. Pay or benefit increases for workers account for 6 percent of the savings those companies report from the law, the group calculates, while job creation accounts for 22 percent. More than half of the money going directly to workers takes the form of one-time bonuses, as opposed to permanent raises or benefits.
By December 2018, the final Just Capital numbers (see chart at top) painted an even worse picture for corporate America and Secretary Mnuchin’s pathetic prediction that 80% of the corporate tax cut windfall would be delivered to its workers in the form of higher compensation:
Our analysis shows that, of the 145 companies that have so far announced their intentions, six percent of tax cut-related savings are being allocated to workers, more than half of which takes the form of one-time bonuses, as