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?

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate