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Activists rally against President Donald Trump's reported plans to loosen Wall Street Regulations and repeal the Dodd-Frank Act outside of Goldman Sachs headquarters in Lower Manhattan, February 7, 2017 in New York City. (Photo by Drew Angerer/Getty Images)

As Workers See Crumbs, Biggest Wall Street Banks Have Already Pocketed $2.5 Billion From Trump Tax Scam

"This bill was always a scam on the American people."

Jake Johnson

As most Americans report that they have seen little to no paycheck boost thanks to the Trump-GOP tax cuts, the very biggest Wall Street banks are reporting quite the opposite: record profits.

Thanks to the Republican law's drastic reduction of the corporate tax rate from 35 percent to 21 percent, the combined earnings of Goldman Sachs, JP Morgan Chase, Citigroup, and Wells Fargo "increased by more than $2.5 billion" in just the first three months of 2018, the Wall Street Journal found in an analysis of bank earnings reports on Tuesday.

"Months after the Republican tax bill passed, we're watching corporations do exactly what they told us they'd do all along: rather than raising wages and creating jobs, they're rewarding their investors and execs with billions of dollars."
—Sen. Sherrod Brown

"Without the tax savings resulting from the new lower corporate tax rate, Wells Fargo's earnings would have declined from a year ago instead of increasing, and much of the year-over-year growth at Citigroup and Bank of America would be gone," the Journal noted. "Losing the tax bump would have cut the earnings growth of JPMorgan to 28 percent from 35 percent; for Goldman, growth would have shrunk by at least a quarter."

Joining the profit bonanza on Wednesday was Morgan Stanley, which posted record quarterly earnings and a 40 percent profit jump thanks in large part to lower taxes.

The Wall Street earnings reports rolled in just as President Donald Trump was using the occasion of Tax Day to proclaim that ordinary Americans are "winning" thanks to the plan he signed into law last December.

But the numbers show that any benefits American workers may be seeing from the $1.5 trillion in tax cuts are far outweighed by the soaring paychecks of investors and corporate fat cats.

"Tax cut riches have gone to execs and investors over workers by [a] nearly 3-to-1 margin," CNBC found in an analysis published on Tuesday.

Chad Bolt, associate policy director at Indivisible, noted that Wall Street's soaring profits alongside meager worker gains should hardly be surprising, given that the Trump-GOP tax plan "was always a scam on the American people."

Bolt also points to the fact that Republicans—with the help of many Democrats—are currently attempting to ram through a bank deregulation bill that will push Wall Street earnings even higher while drastically increasing the risk of another financial meltdown.

"Months after the Republican tax bill passed, we're watching corporations do exactly what they told us they’d do all along: rather than raising wages and creating jobs, they're rewarding their investors and execs with billions of dollars, right now in the form of stock buybacks," Sen. Sherrod Brown (D-Ohio) noted in a tweet on Tuesday. "Make no mistake: this so-called 'tax cut' was never about helping middle class families."


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EPA Urged to 'Finish the Job' After Latest Move to Protect Bristol Bay From Pebble Mine

"Local residents, scientists, and the broader public all agree that this is quite simply a bad place for a mine, and it is past time for the EPA to take Pebble off the table permanently," said one activist in Alaska.

Jessica Corbett ·


'Zero Tolerance for Corruption': Grijalva, Porter Demand Answers on Alleged Trump Pardon Bribery Scheme

The Democrats believe a real estate developer donated to a Trump-aligned super PAC in exchange for the pardons of two other men.

Julia Conley ·


Millions of Americans Lack Adequate Health Coverage, But the Pentagon Has a New Nuclear Bomber to Flaunt

"This ominous death machine, with its price tag of $750 million a pop, brings huge profits to Northrop Grumman but takes our society one more step down the road of spiritual death," peace activist Medea Benjamin said of the new B-21 Raider.

Brett Wilkins ·


Betrayal of Railway Workers Ignites Working-Class Fury Toward Biden and Democrats

"Politicians are happy to voice platitudes and heap praise upon us for our heroism throughout the pandemic," said one rail leader. "Yet when the steel hits the rail, they back the powerful and wealthy Class 1 rail carriers every time."

Jessica Corbett ·


With GOP House Control Looming, Pascrell Calls for Swift Release of Trump Tax Records

"Donald Trump tried to hide his tax returns from our oversight but after 1,329 days we have finally obtained the documents," said the New Jersey Democrat. "We should review and release them."

Kenny Stancil ·

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