Tax Cuts Still Don’t Seem to Be Helping Workers
Bloomberg’s Mark Whitehouse asks the question “have corporate tax cuts made American workers better off, at least in terms of pay?” While he is cautious about drawing definitive conclusions and does warn that it may be too early to tell, he has found zero evidence that wage gains have accelerated and that industries getting bigger tax breaks aren’t giving bigger raises.
In fact, he notes, the promised trend was reversed in some industries: “Two months ago, there was no correlation between the size of tax cuts and wage gains across sectors. Now it’s strongly negative. Companies engaged in wholesale trade reduced wages, even though they’re supposed to save 40 percent during the next decade (according to the Penn Wharton Budget Model). Utilities, among the biggest losers in the tax reform, raised wages at a 6.4 percent annualized rate.”
Read more here.