Trump trade adviser Peter Navarro admitted on CNBC that the tax cuts for the rich are creating a downward pressure on the wages of workers.
Navarro said, “I was a little puzzled when the Fed announced three rate hikes before the end of the year because when I look at the chess board “I don’t see any inflation to speak of in the economy, and a lot of reason is things like the President’s tax cuts, which are going to stimulate a lot of investment, productivity growth and downward pressure on wages.”
The Trump tax cuts were designed to lower wages
Moody’s summed up why workers see no benefit from the tax cuts, “We do not expect a meaningful boost to business investment because U.S. nonfinancial companies will likely prioritize share buybacks, M&A and paying down existing debt. Much of the tax cut for individuals will go to high earners, who are less likely to spend it on current consumption.”
The theory behind the Trump tax cuts is that by giving corporations massive tax cuts, Republicans would spur investment, which would result in growth, and higher wages. What is really happening is that corporations are buying back stock, buying the competition, and paying down debt. By taking money out of the economy, and not giving tax cuts to the people who really spend, the Trump administration has created a downward pressure on wages.
The tax cuts are intended to increase productivity and keep wages low. Navarro admitted as much. The tax cuts for the rich and corporate America were a scam. They were never about helping workers. The benefits were intended to be for the wealthiest Americans and biggest corporations.
Just in time for the midterms and the Democratic wave, the Trump tax cuts are screwing workers.
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Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association