Marco Rubio says there’s “no evidence whatsoever” Republican tax cuts are helping workers

"Rubio’s right: corporations are using a lot more of the tax cut to benefit shareholders than they are to benefit workers

The $1.5 trillion GOP tax cut is a major boon to corporations. It slashed the corporate tax rate to 21 percent from 35 percent, reduced the rate on corporate income brought back to the United States from abroad to between 8 and 15.5 percent instead of 35 percent, and exempted American companies’ foreign income from US tax.

The Republican argument behind the bill is that putting billions of dollars back into the hands of big business will boost the economy, boost wages, and create jobs. But thus far, companies seem to be much more eager to put their tax savings into their shareholders’ pockets by the way of stock buybacks — as Rubio pointed out. Buybacks occur when companies repurchase shares of their own stock. That leaves remaining shareholders with a bigger chunk of the company and increases the earnings they reap per share.

A Bloomberg analysis found that about 60 percent of tax cut gains will go to shareholders, compared to 15 percent for employees. A Morgan Stanley survey found that analysts estimate 43 percent of tax cut savings will go to stock buybacks and dividends, while 13 percent will go to pay raises, bonuses, and employee benefits. Just Capital’s analysis of 121 Russell 1000 companies found that 57 percent of tax savings will go to shareholders, compared to 20 percent directed to job creation and capital investment and 6 percent to workers."

Link here.