Home > Uncategorized > Paul Krugman’s Analysis of “Tax Reform” Reveals Who the Shareholders Are… and It’s No Surprise!

Paul Krugman’s Analysis of “Tax Reform” Reveals Who the Shareholders Are… and It’s No Surprise!

October 27, 2017

Paul Krugman’s blunt analysis of the proposed GOP tax cut included this nugget:

…the benefits from cutting corporate taxes would overwhelmingly flow into after-tax profits rather than wages, especially in the first few years and probably for a decade or more. And this in turn means that the main beneficiaries would be stockholders, not workers.

So who are these stockholders, exactly? You can guess part of the answer: We’re talking mainly about the very affluent. Even if we count indirect holdings in retirement accounts and mutual funds, the richest 10 percent of U.S. residents account for about 80 percent of American-owned stocks, and the richest 1 percent own about 40 percent. So we’re talking, as always when it comes to Republican plans, about tax cuts heavily tilted toward the wealthy.

Is it any mystery why privatization of public services is advocated by the GOP and the neoliberals? Their donor base is not the 90% of Americans who don’t own shares in private enterprise, it is from the 1% who own about 40% of the stocks…. and, alas, those who own stocks are not interested in the well being of our poorest citizens: they are only interested in the bottom line.

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