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Trump voters got well and truly suckered, Part 97

by Dan Burns on February 6, 2018

medievalI’ve seen a lot of good stuff on what the Trump tax scam is really all about, but this is the best.
 

A precise sum of all the pay hikes attributed to the federal tax act by Americans for Tax Reform cannot be determined; many businesses give only a range of bonuses and pay hikes given, while others do not identify the number of employees affected. All pay hikes and bonuses attributed to the federal tax act that can be quantified from this list total about $1 billion. If we assume that all of the other pay hikes that can’t be quantified add another $0.5 billion plus, then the grand total of pay hikes and bonuses attributed to the federal tax act would come to approximately $1.5 billion. We have to suppose, of course, that all these pay hikes listed would not have occurred in the absence of the tax act—an extremely generous and unlikely supposition. This estimate also ignores all post-tax act layoffs and resulting wage losses.
 
According to the Institute on Taxation and Economic Policy, next year U.S. businesses will receive $157 billion in tax breaks due the 2017 tax act. Based on our rough back of the envelope calculations, the pay hikes resulting from the federal tax act will come to about a penny on the dollar of the total tax relief bestowed on businesses. A large portion of this penny consists of one-time bonuses; while the business tax breaks resulting from the federal tax act will continue into future years, the bonuses for workers might not. Over time, the workers’ share of each dollar of business tax breaks could shrink to less than a penny.
(North Star Policy Institute)

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