CEOs Are Already Spending Their Tax Cut on the Rich

Corporate CEOs have already made it plain that a tax cut won’t prompt them to hire more or invest more. They already have lots of money, and if they wanted to expand they’d have already done it. Instead, the tax cut will go toward increased dividends and bigger stock buybacks, which mostly benefit wealthy shareholders.

In fact, according to Senate Democrats, they’re already making good on this promise. Over the past three years, stock buybacks have been pretty steady at a rate of roughly $1-2 billion per day. But ever since the Senate passed the tax bill, making its final enactment almost certain, stock buybacks have skyrocketed:

This does exactly nothing to help the economy or employ more workers. But it does make the rich even richer, and isn’t that the whole point?

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

payment methods

We Recommend

Latest