Paul Krugman exposes the reality of Trump & the GOPs tax cut scam

[egbertowillies]

We warned over and over again about Trump and the Republicans' tax cut scam. Republicans have done a masterful job in concert with several corporations to frame bonuses and pay hikes as a result of the GOP tax cuts. The smoke and mirrors cannot compete with the reality.

https://egbertowillies.com/2018/02/27/paul-krugman-trump-gop-tax-cut-scam/

[procon]

1. The damning take away info from Krugman's article is this:

"...if you say “company X just hired 1000 workers” or “company Y just gave 5000 workers a $1000 bonus” they imagine that these are big stories, when in reality they’re just noise in an economy where around 5 million workers are hired – and an almost equal number quit or are fired – every month.
...
Furthermore, the surge in stock buybacks suggests that the long run effect of the tax cut on wages will be small. Remember that the chain that should lead to trickle-down begins with lower taxes -> higher investment. If companies use the cuts to buy back stocks, not add to plant and equipment, the wage-growth story doesn’t even get started.

So the real news about the tax cut is that it is – I know you’ll be shocked – mainly a giveaway to corporations. Who could have predicted?"

Announcing a one time bonus --which is a lot cheaper than an actual pay raise -- for a few workers is just a feel-good PR stunt intended to makes those companies look good. Its a cheap way to publicly praise Trump while asking him to give them more exemptions, and cut more safety, environmental and labor regulations. It's just a scam.