Again Kiera the statistics show that lower income wage workers benefitted more than any single group under Trump and that the wealth gap shrank under Trump.
It is true corporations paid less in taxes and that was intentional… but that translated into higher wages for workers and more jobs. Nothing proves this more than looking at government revenues by source, where the drop in corporate income taxes was more than offset by an increase in payroll taxes due to higher wages and more workers (keep in mind corporations pay half the payroll tax).
Jamie Dimon said it best when he said the corporate income tax cut created a one to three year windfall for Corporations, but that competition would drive the benefit of lower taxes into one of four areas…
- increases in wages to employees initially as bonuses and over a longer period of time as wage increases. This happened.
- low prices to consumers as corporations used their “windfall tax savings” to “buy” market share. This also happened as there was no evidence of inflation across the economy as companies absorbed their cost increases to hold on to market share.
- investments. Some companies like Facebook and Google already pay high wages and have little competition so they invested their profits into making their products even harder to compete with… that translates into more workers were on incremental functionality within their applications.
- dividends. If a company has no use for the money, it gives it to its owners. Then their owners either spend it or invest it elsewhere.
Do you feel you have benefited from applications like this one? Where did the money come from to pay the workers that created this application before it was ready to go live? Do you use social networks? Do you like your cell phone? All of these things require someone to invest in them so we can all enjoy them. If the investment works out the investors make money and if they turn out to be duds… the investors lose all their investment.
We all benefit when investors take risks even if we don’t all make money off the investments of others.
