TrumpTax Lines Corporate Coffers While Wages And CNY Job Growth Remain Stagnant
TRUMPTAX CONTINUES LINING CORPORATE COFFERS AS WAGES AND CENTRAL NEW YORK JOB GROWTH REMAIN STAGNANT
Latest Numbers Show Job Growth Stagnant In Syracuse, Despite Katko’s Claims
While Tenney Touts Job Growth Outside Of New York, Wages Continue To Fall As Corporations Spend Billions On Stock Buybacks, Not Workers
SYRACUSE — Even as Congressmembers John Katko and Claudia Tenney continue to use misinformation to defend their votes for the TrumpTax they helped pass in December, new reports this week show that wages remain stagnant for workers across the country, and job-seekers in Central New York continue to face rising unemployment rates and few new jobs.
The Syracuse region’s unemployment rate rose for 14 of the past 17 months, in contrast with national trends, according to a new report from the Syracuse Post-Standard. The region ranks 267th out of 388 nationally, and the labor force has shrunk significantly over the past several years. Despite no evidence to support his claim, Katko insists the Republican tax scam is spurring regional growth, even wrongfully attributing previously planned worker raises to the tax bill’s $1.5 trillion in tax cuts for wealthy corporations.
Tenney tweeted today that “#TaxReform is working,” citing a CNN Money article that reported jobs were added across the country in June. But the same article showed – in a quote Tenney conveniently omitted – that workers aren’t seeing the vast majority of the benefits corporations reaped under the TrumpTax: “Although average hourly wages grew 2.7% in June from a year ago, they didn’t change much from May and came in below economists’ expectations. Normally, a tight labor market encourages employers to pay more to attract and retain workers.”
A CBS Money article published today quoted a jobs market analyst who questioned why workers aren’t seeing any wage increases or bonuses after the passage of the TrumpTax. The answer is simple: corporations are keeping their billions in tax savings for themselves.
“Businesses are spending nearly $700 billion on repurchasing their own stock so far this year, according to research from TrimTabs. Corporations set a record in Q2, announcing $433 billion worth of buybacks — nearly doubling the previous record, which was set in Q1,” the article said.
Since the TrumpTax was passed, just 4.3 percent of American workers have gotten a bonus or wage hike. Instead, corporations have spent 80 times as much on stock buybacks to reward rich executives and shareholders than they’ve spent on increasing worker pay.
Earlier this week, Tenney and Katko both appeared alongside Ivanka Trump to conduct another victory lap on the TrumpTax, even though workers aren’t seeing its benefits. In fact, thanks to the TrumpTax’s included repeal of the individual mandate and ensuing double-digit premium hikes, the meager savings afforded by the TrumpTax will be more than offset by dramatically increased health care costs. For the bottom 60 percent of earners in New York, the net impact of the tax scam will be an average $182 increase in costs, due to rising insurance costs.
As Tenney and Katko continue to vocally support the Republican tax scam, workers across Central New York and nationwide fail to see any of the supposed benefits. The billions in tax cuts offered to wealthy corporations and rich campaign donors have remained in the coffers of the richest fraction of the country, with no signs of trickling down to working families.