As we continue to learn more and more about the tax plan Sen. Dean Heller helped write and pass, the more it becomes clear who this plan was written for: giant corporations and ultra-wealthy corporate CEOs. Instead of putting Nevada’s hardworking families first like he promised, Heller’s out-of-touch tax plan is forcing them to shoulder more of the burden to pay for those cuts.
Some of the biggest winners from President Donald Trump’s new tax law are corporate executives who have reaped gains as their companies buy back a record amount of stock, a practice that rewards shareholders by boosting the value of existing shares.
A POLITICO review of data disclosed in Securities and Exchange Commission filings shows the executives, who often receive most of their compensation in stock, have been profiting handsomely by selling shares since Trump signed the law on Dec. 22 and slashed corporate tax rates to 21 percent. That trend is likely to increase, as Wall Street analysts expect buyback activity to accelerate in the coming weeks.
“It is going to be a parade of eye-popping numbers,” said Pat McGurn, the head of strategic research and analysis at Institutional Shareholder Services, a shareholder advisory firm.
That could undercut the political messaging value of the tax cuts in the Republican campaign to maintain control of Congress in the midterm elections.
Workers are shouldering a rising share of federal revenue, while tax payments by businesses are plunging toward record lows.
Treasury Department data for the first half of 2018 show individual income tax receipts rose 8.1%, to $915 billion. Corporate income tax receipts fell 32.4%, to $100 billion. The sharp decline in corporate tax revenue is largely a result of the tax cuts President Trump signed into law at the end of 2017, which cut the top corporate rate from 35% to 21%.
Nevada State Democratic Party spokesperson Sarah Abel released the following statement:
“In the months since Dean Heller’s tax plan was implemented, it’s increasingly clear this plan is a sham designed first and foremost to boost corporate CEOs. With less than 100 days to go in this election, Nevada voters keep getting clear reminders that Sen. Heller sold them out to please his big donors and his party bosses in Washington.”