CEOs Are Already Spending Their Tax Cut on the Rich

Corporate CEOs have already made it plain that a tax cut won’t prompt them to hire more or invest more. They already have lots of money, and if they wanted to expand they’d have already done it. Instead, the tax cut will go toward increased dividends and bigger stock buybacks, which mostly benefit wealthy shareholders.

In fact, according to Senate Democrats, they’re already making good on this promise. Over the past three years, stock buybacks have been pretty steady at a rate of roughly $1-2 billion per day. But ever since the Senate passed the tax bill, making its final enactment almost certain, stock buybacks have skyrocketed:

This does exactly nothing to help the economy or employ more workers. But it does make the rich even richer, and isn’t that the whole point?

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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