Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

ONE DAY left in this Mid-Year Campaign. This is our hour of need.
If you value independent journalism, please support Common Dreams.

Join the small group of generous readers who donate, keeping Common Dreams free for millions of people each year. Without your help, we won’t survive.

"So far the tax cuts have been rocket fuel for just one thing: a surge in stock buybacks, making the rich even richer," author and labor reporter Steven Greenhouse wrote on Tuesday. (Photo: MarketWatch Photo Illustration/Getty Images)

Thanks to Trump Tax Cuts, Major Corporations Set to Spend 'Obscene' $1 Trillion Rewarding Investors Instead of Workers

Apple announced Tuesday it will spend $100 billion buying back its own stock—333 times the amount it has spent on one-time worker bonuses

Jake Johnson

As even one member of the Republican Party was forced to admit earlier this week, President Donald Trump's $1.5 trillion tax cut has done virtually nothing for the vast majority of American workers—but evidence continues to roll in that it has been a massive boon for the largest corporations.

"This is more proof that the Trump tax scam was never meant to benefit workers. It was designed to benefit the wealthy, rich CEOs, and big corporations."
—Americans for Tax Fairness

According to new data compiled by S&P Dow Jones Indices, America's biggest and most profitable companies are on track to hand "a record $1 trillion to investors through dividend increases and stock buybacks."

A major example of companies using their tax savings to buy their own stock instead of boosting investment or giving workers raises came on Tuesday, when Apple announced it would be spending $100 billion on buybacks, which the New York Times reports is "by far the largest increase in its already historic record of returning capital to investors."

As Americans for Tax Fairness (ATF) noted in response to the company's announcement, $100 billion is 333 times the amount it has given workers in the form of one-time bonuses.

"This is more proof that the Trump tax scam was never meant to benefit workers," ATF tweeted on Tuesday. "It was designed to benefit the wealthy, rich CEOs, and big corporations."

Apple's announcement comes on the heels of a slew of giddy profit reports by Wall Street banks, which have already raked in billions thanks to the Trump-GOP tax cuts.

Contrary to repeated promises from Republicans and the Trump administration that the tax law would spur a wave of new investment, the Times reported on Monday that "hard evidence" of a massive investment boost has yet to appear, while there is plenty of evidence that companies are following Apple's lead and dumping their tax savings into the pockets of ultra-wealthy executives.

"Trump and GOP lawmakers said the huge corporate tax cuts were going to be 'rocket fuel' to increase corporate investment," wrote author and labor reporter Steven Greenhouse on Tuesday. "So far the tax cuts have been rocket fuel for just one thing: a surge in stock buybacks, making the rich even richer."

Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

Just ONE DAY left in our crucial Mid-Year Campaign and we might not make it without your help.
Who funds our independent journalism? Readers like you who believe in our mission: To inform. To inspire. To ignite change for the common good. No corporate advertisers. No billionaire founder. Our non-partisan, nonprofit media model has only one source of revenue: The people who read and value this work and our mission. That's it.
And the model is simple: If everyone just gives whatever amount they can afford and think is reasonable—$3, $9, $29, or more—we can continue. If not enough do, we go dark.

All the small gifts add up to something otherwise impossible. Please join us today. Donate to Common Dreams. This is crunch time. We need you now.

'What's There to Even Discuss?' Omar Says Free, Universal School Meals Should Be Permanent

"We have an opportunity to prove that a government of the people, by the people, and for the people can still deliver big things. And we can feed tens of millions of hungry kids while we do it."

Jake Johnson ·

'Stark Betrayal': Biden Administration Floats New Offshore Oil and Gas Drilling

"This is the third time since November the Biden administration has announced new oil and gas leasing plans on the Friday before a holiday," said one climate advocate. "They're ashamed, and they should be."

Jake Johnson ·

As US Rolls Back Reproductive Rights, Sierra Leone Moves to Decriminalize Abortion

"I'm hopeful today's announcement gives activists in the U.S., and especially Black women given the shared history, a restored faith that change is possible and progress can be made."

Brett Wilkins ·

'Indefensible': Outrage as New Reporting Shines Light on Biden Deal With McConnell

The president has reportedly agreed to nominate an anti-abortion Republican to a lifetime judgeship. In exchange, McConnell has vowed to stop blocking two Biden picks for term-limited U.S. attorney posts.

Jake Johnson ·

Assange Makes Final Appeal Against US Extradition

"If Julian Assange is not free, neither are we," said a protester at a Friday demonstration against the WikiLeaks founder's impending transfer. "None of us is free."

Brett Wilkins ·

Common Dreams Logo