Millions More Americans See No Refund This Tax Season
On Tax Day 2019, Americans are reminded that President Trump promised the Republican tax law would be a “middle-class miracle”.
Instead, millions fewer Americans are set to receive tax refunds, while up to 30 million taxpayers could owe money to the IRS because of the new tax law.
As millions of American families struggle to get by, corporate executives and wealthy shareholders have cashed in through record corporate stock buybacks since the Republican tax law was enacted.
Unfortunately, many of those same corporations who have announced billions in corporate stock buybacks have also laid off American workers while still reaping the benefits of the tax law.
In his remarks at an Indianapolis event in 2017, President Trump pledged a tax reform initiative that would help American families:
“We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans, and we are going to bring back the jobs and wealth that have left our country” — President Trump, 9/27/17
It’s no wonder that according to recent polls, the American people know the tax law benefits corporations and the wealthy — not the middle class.
And as millions more Americans see no refund this tax season, corporate executives and wealthy shareholders continue to cash in on the Republican tax law via record stock buybacks.
According to the investment research firm TrimTabs, corporations have already announced $213 billion in new corporate stock buyback plans in 2019. Unfortunately, many of those companies have announced billions in corporate stock buyback plans while also laying off American workers.
- eBay announced plans to lay off workers in 2019. eBay also announced it will reward corporate executives and wealthy shareholders with an additional $4 billion increase in its corporate stock buyback program.
- Ball Corporation announced plans to lay off workers in Texas. In 2019, Ball Corporation announced it will reward corporate executives and wealthy shareholders with billions of dollars through a corporate stock buyback program.
- Activision Blizzard announced plans to lay off hundreds of workers in 2019. Activision Blizzard also announced it will reward corporate executives and wealthy shareholders with a $1.5 billion corporate stock buyback program.
- Xerox announced plans to lay off more workers after already laying off hundreds. In 2019, Xerox also announced it will reward corporate executives and wealthy shareholders with a $1 billion corporate stock buyback program.
- Oracle announced plans to lay off hundreds of workers in California. Oracle also spent nearly $30 billion on corporate stock buybacks in the nine months ending on February 28, 2019.
While corporate stock buybacks boomed in the first year after the Republican tax law was enacted, capital expenditures did not come close to matching that pace.
Republicans said that their tax law would cause “massive investment” in the United States. That investment was supposed to trickle down and benefit American workers. However, one of the largest forms of corporate investment, so-called capital expenditures, has not materialized at anticipated levels; as corporate stock buybacks have surged to record highs, capital expenditures have failed to keep pace.