Mainecat Posted July 23, 2018 Share Posted July 23, 2018 (edited) How the Republican tax cuts are failing workers, in one chart Republicans said corporate tax cuts would boost wages. They’re not. By Emily Stewart Jul 23, 2018, 1:50pm EDT SHARE House Speaker Paul Ryan visits the New Balance shoe factory in Lawrence, Massachusetts, at which he discussed tax reform on July 20, 2017. Adam Glanzman/Getty Images 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. While wages have risen by 12.9 percent overall since 2006, wages adjusted for inflation (so-called “real wages”) have actually fallen by 9.3 percent. And between the first and second quarters of 2018 — after the tax cuts were enacted — real wages fell by 1.8 percent. As Noah Smith, the Bloomberg writer who highlighted the PayScale data in a story on the tax bill’s benefits for workers — or, rather, lack thereof — points out, official Bureau of Labor Statistics data from the second quarter isn’t available yet. Two quarters might be too early to gauge the tax bill’s effects on wages. Still, the data out there is discouraging: 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. According to estimates from the Center on Budget and Policy Priorities, the top fifth of earners get 70 percent of the bill’s benefits, and the top 1 percent get 34 percent. The new tax treatment for “pass-through” entities — companies organized as sole proprietorships, partnerships, LLCs, or S corporations — will mean an estimated $17 billion in tax savings for millionaires in 2018. 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. When the tax bill was passed, a number of corporations announced bonuses and investments. Some of those were recycled news, and regardless, while a $1,000 one-time payout is a nice boost, it is not a sustained benefit to workers in the same way a wage increase is. 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.” President Donald Trump has already started talking about a new tax bill that would reduce the corporate tax rate even more and make temporary tax cuts for families and individuals permanent. 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. The conservative-leaning Tax Foundation estimates that Trump’s enacted and proposed tariffs completely reverse the tax bill’s positive effects on the labor force. It estimates the tariffs enacted so far will reduce wages by 0.04 percent and eliminate more than 48,000 jobs. If the White House enacts every tariff it’s threatened, it would reduce wages by 0.26 percent and slash 277,000 jobs. In an appearance on CNBC last week, Trump bragged that the United States was essentially “playing with the bank’s money” in launching a trade war because the stock market is up so high. American workers who aren’t seeing their wages rise would likely disagree. L https://www.vox.com/2018/7/23/17602746/tax-cuts-work-bloomberg-wages Edited July 23, 2018 by Mainecat Quote Link to comment Share on other sites More sharing options...
Momorider Posted July 23, 2018 Share Posted July 23, 2018 More from FAKENEWSMAINECUNT Quote Link to comment Share on other sites More sharing options...
XC.Morrison Posted July 23, 2018 Share Posted July 23, 2018 9 minutes ago, Mainecat said: How the Republican tax cuts are failing workers, in one chart Republicans said corporate tax cuts would boost wages. They’re not. By Emily Stewart Jul 23, 2018, 1:50pm EDT SHARE House Speaker Paul Ryan visits the New Balance shoe factory in Lawrence, Massachusetts, at which he discussed tax reform on July 20, 2017. Adam Glanzman/Getty Images 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. While wages have risen by 12.9 percent overall since 2006, wages adjusted for inflation (so-called “real wages”) have actually fallen by 9.3 percent. And between the first and second quarters of 2018 — after the tax cuts were enacted — real wages fell by 1.8 percent. As Noah Smith, the Bloomberg writer who highlighted the PayScale data in a story on the tax bill’s benefits for workers — or, rather, lack thereof — points out, official Bureau of Labor Statistics data from the second quarter isn’t available yet. Two quarters might be too early to gauge the tax bill’s effects on wages. Still, the data out there is discouraging: 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. According to estimates from the Center on Budget and Policy Priorities, the top fifth of earners get 70 percent of the bill’s benefits, and the top 1 percent get 34 percent. The new tax treatment for “pass-through” entities — companies organized as sole proprietorships, partnerships, LLCs, or S corporations — will mean an estimated $17 billion in tax savings for millionaires in 2018. 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. When the tax bill was passed, a number of corporations announced bonuses and investments. Some of those were recycled news, and regardless, while a $1,000 one-time payout is a nice boost, it is not a sustained benefit to workers in the same way a wage increase is. 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.” President Donald Trump has already started talking about a new tax bill that would reduce the corporate tax rate even more and make temporary tax cuts for families and individuals permanent. 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. The conservative-leaning Tax Foundation estimates that Trump’s enacted and proposed tariffs completely reverse the tax bill’s positive effects on the labor force. It estimates the tariffs enacted so far will reduce wages by 0.04 percent and eliminate more than 48,000 jobs. If the White House enacts every tariff it’s threatened, it would reduce wages by 0.26 percent and slash 277,000 jobs. In an appearance on CNBC last week, Trump bragged that the United States was essentially “playing with the bank’s money” in launching a trade war because the stock market is up so high. American workers who aren’t seeing their wages rise would likely disagree. L https://www.vox.com/2018/7/23/17602746/tax-cuts-work-bloomberg-wages That sucks. I was really hoping this would be the one thing Trump would get right, but nope. Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 23, 2018 Share Posted July 23, 2018 Why do you guys believe this rubbish? Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 23, 2018 Share Posted July 23, 2018 What will create more jobs, demand for products, and increase salaries more? 1% gdp, or 4% gdp. Quote Link to comment Share on other sites More sharing options...
XC.Morrison Posted July 23, 2018 Share Posted July 23, 2018 7 minutes ago, Edmo said: Why do you guys believe this rubbish? Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 23, 2018 Share Posted July 23, 2018 6 minutes ago, XC.Morrison said: Facts being cleverly used to sway a topic debate in what is little more than an editorial opinion piece is nothing new. It's the artistry of ommittng other pertinent information that is the key to melding weak minds. 1 Quote Link to comment Share on other sites More sharing options...
XC.Morrison Posted July 23, 2018 Share Posted July 23, 2018 Just now, Zamjabronie said: Facts being cleverly used to sway a topic debate in what is little more than an editorial opinion piece is nothing new. It's the artistry of ommittng other pertinent information that is the key to melding weak minds. Good point - lets go right to the source so we can talk straight facts, shall we: Despite a historically low level of unemployment, nominal and real wage growth falter in Q2 The Q2 index showed that while nominal wages are 1.1 percent higher than what they were a year ago, they declined 0.9 percent in comparison to Q1 2018. Meanwhile, real wages that factored in inflation took a hit: Quarter over quarter growth was -1.8 percent, the biggest decline since Q2 2011. Year over year growth was -1.4 percent, the largest drop since Q1 2014. Due to the rapid rise of the Consumer Price Index (CPI), workers in Twenty two of the 31 Metro Areas We Cover Saw a Q/Q Decline in Nominal Wages Austin (-2.3 percent), Orlando (-1.7 percent) and Milwaukee (-1.6 percent) had the largest Q/Q dips. However, Orlando was the only one of the three to enter negative territory for annual growth (-0.2 percent). With 4.2 percent Y/Y growth, the San Jose metro area tops the list of metro areas for fastest Y/Y nominal wage growth, and by a large margin. Cleveland is a distant second with a Y/Y rate 1.6 percentage points lower. https://www.payscale.com/compensation-today/2018/06/payscale-index-q2-2018 Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 23, 2018 Share Posted July 23, 2018 Just now, XC.Morrison said: Good point - lets go right to the source so we can talk straight facts, shall we: Despite a historically low level of unemployment, nominal and real wage growth falter in Q2 The Q2 index showed that while nominal wages are 1.1 percent higher than what they were a year ago, they declined 0.9 percent in comparison to Q1 2018. Meanwhile, real wages that factored in inflation took a hit: Quarter over quarter growth was -1.8 percent, the biggest decline since Q2 2011. Year over year growth was -1.4 percent, the largest drop since Q1 2014. Due to the rapid rise of the Consumer Price Index (CPI), workers in Twenty two of the 31 Metro Areas We Cover Saw a Q/Q Decline in Nominal Wages Austin (-2.3 percent), Orlando (-1.7 percent) and Milwaukee (-1.6 percent) had the largest Q/Q dips. However, Orlando was the only one of the three to enter negative territory for annual growth (-0.2 percent). With 4.2 percent Y/Y growth, the San Jose metro area tops the list of metro areas for fastest Y/Y nominal wage growth, and by a large margin. Cleveland is a distant second with a Y/Y rate 1.6 percentage points lower. https://www.payscale.com/compensation-today/2018/06/payscale-index-q2-2018 I look at the title and the source. I also know wages aren't ready to increase just yet. We need to achieve churn before that happens. People still entering the work force slows that process. THIS IS A GOOD THING. Hold on...let me check with "Vanity Fair" and "Mother Jones" first though......you and MC just sit there and wait for armageddon. Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 23, 2018 Share Posted July 23, 2018 3 minutes ago, Zamjabronie said: I look at the title and the source. I also know wages aren't ready to increase just yet. We need to achieve churn before that happens. People still entering the work force slows that process. THIS IS A GOOD THING. Hold on...let me check with "Vanity Fair" and "Mother Jones" first though......you and MC just sit there and wait for armageddon. Let’s talk about the entitlement mentality I feel is way to prevalent in this country. I see it everyday. A lot of folks think just showing up for work entitles you a fat salary with big raises. What are YOU doing to improve your marketability and salary? How many times did you say fuck this place and move to another company/job where the ceiling may be higher? When I punched a clock I showed up everyday, kicked ass and sucked up all the company training classes I could. I even went outside of work to find more training to better myself. I never had an issue with decreasing wages. Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 23, 2018 Share Posted July 23, 2018 9 minutes ago, Edmo said: Let’s talk about the entitlement mentality I feel is way to prevalent in this country. I see it everyday. A lot of folks think just showing up for work entitles you a fat salary with big raises. What are YOU doing to improve your marketability and salary? How many times did you say fuck this place and move to another company/job where the ceiling may be higher? When I punched a clock I showed up everyday, kicked ass and sucked up all the company training classes I could. I even went outside of work to find more training to better myself. I never had an issue with decreasing wages. Clearly, you weren't in it for the "collective good". Shame. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member ViperGTS/Z1 Posted July 23, 2018 Platinum Contributing Member Share Posted July 23, 2018 Tax cut is working well for my paycheck....seeing between $50 and $70 more each week. Only complaint I have is being limited to 10k on declaring property tax. I'm a bit over that but my weekly increase in take home pay has more than offset the difference. Vote Republican this Nov. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted July 23, 2018 Share Posted July 23, 2018 15 minutes ago, ViperGTS/Z1 said: Tax cut is working well for my paycheck....seeing between $50 and $70 more each week. Only complaint I have is being limited to 10k on declaring property tax. I'm a bit over that but my weekly increase in take home pay has more than offset the difference. Vote Republican this Nov. dont forget you also lost your income tax deduction within that 10k limit. Quote Link to comment Share on other sites More sharing options...
Anler Posted July 23, 2018 Share Posted July 23, 2018 I'ma make a good amount more thanks to the tax cut. Switching to c Corp too will put more money in my pocket! Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 23, 2018 Share Posted July 23, 2018 20 minutes ago, ViperGTS/Z1 said: Tax cut is working well for my paycheck....seeing between $50 and $70 more each week. Only complaint I have is being limited to 10k on declaring property tax. I'm a bit over that but my weekly increase in take home pay has more than offset the difference. Vote Republican this Nov. I'm going to vote Dem. I just want to for the stories. Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted July 23, 2018 Share Posted July 23, 2018 Nonsense. Edmo got a bonus for the first time in 8 years, and racer got 2% savings in pay roll taxes Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted July 23, 2018 Share Posted July 23, 2018 1 hour ago, XC.Morrison said: Lmao Quote Link to comment Share on other sites More sharing options...
Cold War Posted July 24, 2018 Share Posted July 24, 2018 At a grad party over the weekend. Two different people telling me they can get $1000 for bringing in new hires. Ome guy working for glass company said owner wants to build second building, but on hold due to no employees to fill positions. Quote Link to comment Share on other sites More sharing options...
motonoggin Posted July 24, 2018 Share Posted July 24, 2018 This is because workers are lazy... Quote Link to comment Share on other sites More sharing options...
motonoggin Posted July 24, 2018 Share Posted July 24, 2018 Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 24, 2018 Share Posted July 24, 2018 52 minutes ago, Snoslinger said: Lmao You skipped right over the lefty bias part. Bravo! Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted July 24, 2018 Platinum Contributing Member Share Posted July 24, 2018 LMFAO. Are we even 6 months into the tax cut? Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted July 24, 2018 Share Posted July 24, 2018 1 minute ago, Edmo said: You skipped right over the lefty bias part. Bravo! Well facts do generally favor the left. Sorry. Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 24, 2018 Share Posted July 24, 2018 1 minute ago, Snoslinger said: Well facts do generally favor the left. Sorry. Of course. 👍 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted July 24, 2018 Platinum Contributing Member Share Posted July 24, 2018 (edited) 12 minutes ago, motonoggin said: This is because workers are lazy... Oh really. Still paid lots of taxes. Edited July 24, 2018 by Highmark Quote Link to comment Share on other sites More sharing options...
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