Friend,

This week’s bombshell New York Times report―revealing Donald Trump’s tax returns―showed that he paid just $750 in federal income taxes in both 2016 and 2017.[1]

While Trump is more than happy to exploit any tax loophole and use any accounting scheme he can to pocket every penny possible, this EPI chart of the week shows that his much promoted 2017 tax cuts resulted in corporations doing essentially the same thing―pocketing every penny of their tax cuts.

Take a look at this EPI chart below that shows that the Tax Cut and Jobs Act failed to result in businesses investing in their employees. This was true long before the economic turmoil of 2020:
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Supporters of the Tax Cut and Jobs Act made the erroneous supply-side argument that higher corporate profits would boost investment, which would trickle down to faster productivity growth that would trickle down and boost workers’ wages. The problem: it didn't happen. There is no evidence of any investment boom. Take a look at the blue line in the chart above. Instead of steady growth, investment only followed along its pre-tax cut trend for a couple of quarters before it completely cratered.

The only thing this tax cut accomplished was allowing corporations and their shareholders to further enrich themselves.

If you believe in an economy and a tax system that works for everyone, not just Donald Trump and rich, profitable corporations, donate today. EPI is powering our movement for progressive economic change, fighting to keep the voice of working people at the policy table.
 
Year after year, EPI’s economists produce detailed, chart-filled reports that highlight inequalities in our economy. We need this critical work now more than ever to guide policy makers and activists as we fight for the rights and wages of all working people.
 
Thank you,
 
Eve Tahmincioglu
Director of Communications, Economic Policy Institute
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[1] “Long-Concealed Records Show Trump’s Chronic Losses And Years Of Tax Avoidance,” New York Times, Sept. 27, 2020
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