A recent survey by analysts at investment bank Morgan Stanley showed that only 13 percent of corporations (and only 9 percent of manufacturers) plan on using the income from the GOP tax cuts for bonuses, wages and/or benefits for workers. By contrast, 43 percent plan on using the tax cuts for share buybacks or dividends.
This sad prediction flies in the face of rosy promises from Team Trump and the GOP that the tax cuts will be a historic boon for workers. In fact, it will be a historic boon for the already wealthy. And as such, the true core of today’s Republican party is exposed. Their motto should be, “pay attention to what we say, not what we do.” They talk about workers, but they make laws to benefit the plutocracy.
The executive class has flourished spectacularly in the past three decades. Corporate boards have become an incestuous and self-congratulatory clique of CEOs who enrich each other because they can. Thanks to stock options and share bonuses, ownership in public corporations has become increasingly concentrated in the executives that run them. And the gap between the salaries of average workers and CEOs has widened to a chasm. The justifications have become so absurd that CEOs whose companies lose a hundred million dollars get eight figure severance packages because a lesser CEO would have lost two-hundred million.
Combine these trends with a tax landscape increasingly tilted toward billionaires, plus a presidential administration staffed by corporate hacks whose policies no longer protect workers but instead protect owners and powerful corporations, and it spells disaster for the inequality gap.
When you ignore their rhetoric and just focus on their actions, Trump and the Republican party clearly hate workers. As the tax scam flows through the economy and the deficit balloons, it will become clear that their economic plan will leave the country worse off, just as similar fiscal projects by conservatives have bankrupted Oklahoma and Kansas.
If the GOP’s solution to the economic problems created by their pro-plutocracy agenda is to rob Medicare and Social Security, we should all scream bloody murder. The social safety net has served this country well since its inception, and eases the anxiety of tens of millions of our fellow citizens. If this isn’t a winning issue for the left in the 2018 mid-terms, nothing will be.