The Trump administration’s tax cuts are bad for American prosperity and mainly favor a small pool of wealthy people, suggests Robert Reich in Alternet. The biggest outcome of such tax reform are corporate stock buybacks, which used to be illegal. These do little for the overall health of the economy and primarily benefit shareholders. They buy their company’s own stocks to artificially push up their share prices. CEOs encourage this because their pay rises with the value of stocks. Rather than creating jobs or investment in new technologies, Trump’s tax breaks put more money in the pockets of people that are already rich.
The GOP’s tax cuts have benefited most Americans, in particular small business owners, holds Alfredo Ortiz of The Hill. After much criticism from Democrats, the average US earner is seeing a monthly wage increase of $135, which rises even more if they have children. Walmart, which employs 1.4 million people, introduced an $11 minimum wage and handed out bonuses as high as $1,000. Tax reform had a big hand in the average US wage surging at its fastest in almost ten years. Small businesses are some of its biggest recipients, seeing a 20% tax deduction. These cuts are benefiting the majority of US workers.