It’s been one year since the Republican Party passed its massive tax cut — and so far it’s remained a political albatross for the GOP as the party’s promises of massive wage growth for workers have yet to pan out.
The Washington Post’s Matt O’Brien has taken a look at some of the numbers associated with the tax cut and has found that it hasn’t come close to living up to Republicans’ promises in nearly any aspect.
President Donald Trump, for instance, boasted that the tax law would cause companies to bring back $5 trillion in overseas profits back to the United States — but so far, they’ve brought back a measly $143 billion.
Meanwhile, notes O’Brien, businesses’ nonresidential fixed investment last quarter rose by just 0.8 percent, even though the GOP promised that its tax cuts would lead to an explosion in domestic investments by corporate America.
So what have corporations done with their tax cut windfalls? Instead of investing in their businesses, they’ve been keeping their shareholders happy with a record high in total share buybacks.
Nonetheless, O’Brien believes the GOP’s tax cut has delivered on one key goal of the party: To make rich people even richer.
“For some of them, you see, letting the rich keep more of their money is an absolute moral good,” O’Brien writes. “Heck, it might be the absolute moral good. That’s because they’re worried, as House Speaker Paul D. Ryan (R-Wis.) used to put it before he realized that this type of Ayn Rand-inspired rhetoric is politically toxic, that the ‘takers’ will soon outnumber the ‘makers’ and simply vote to give themselves other people’s money.”