Big Banks Cash in Billions from GOP Tax Scam
Yet another analysis – this time from the Wall Street Journal – reveals big banks and Wall Street are the biggest beneficiaries of the GOP tax scam, not hard-working American families as Republicans promised.
WSJ reports the four biggest banks in the U.S. – JP Morgan, Wells Fargo, Citigroup and Bank of America – hauled a whopping $2.3 billion in benefits from the GOP tax scam… in just one quarter:
Big banks just cashed in the first installment of benefits corporate America will reap from the new federal tax law.
The haul: more than $2.3 billion.
That is how much the combined earnings of the four major national banks— JPMorgan JPM -0.01% Chase & Co., Wells Fargo WFC -0.43% & Co., Citigroup Inc. C -0.50% and Bank of America Corp. BAC 0.30% —increased in the first quarter because of the lower corporate rates under the tax-overhaul law enacted in December, according to an analysis of the banks' results by The Wall Street Journal.
That amount is only a modest-size chunk of the banks' total first-quarter earnings—less than 10% of their combined net income applicable to common shareholders.
…
Without the tax savings resulting from the new lower corporate tax rate, Wells Fargo's earnings would have declined from a year ago instead of increasing, and much of the year-over-year growth at Citigroup and Bank of America would be gone. At JPMorgan, losing the tax bump would have cut its earnings growth to 28% from 35%.
On Tax Day, Republicans are seeing their dishonest tax scam message collapse in the eyes of the American people.
The GOP tax bill is a scam that:
- Raises taxes on 86 million middle class families.
- Gives 83 percent of the tax cuts to the wealthiest one percent.
- Hands a $1.3 trillion tax rate break for corporations.
- Explodes the deficit by nearly $2 trillion.
- Ransacks the future of Medicare, Medicaid, education, veterans, and working families.
While Republicans abandon America's hard-working families, Democrats prioritize creating jobs, responsibly reducing the deficit and putting the middle class first with A Better Deal: Better Jobs, Better Wages, Better Future.