“I made a lot of bankers look very good,” President Donald Trump boasted this week just before it was reported Thursday that the nation’s six largest banks alone have received an estimated $32 billion windfall thanks to Republican tax cuts.
“We need to break up these big banks and tax Wall Street to cancel all student debt. That’s exactly what #PresidentSanders will do.” —Warren Gunnels, Sanders campaign senior advisor
The figures were generated by Bloomberg News after reviewing the 2019 profits of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley.
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By looking at the banks’ earnings in relation to effective tax rates that dropped from 20% to 18% last year—and comparing that to the 30% average they paid prior to the tax cut bill passed by Republicans and signed by Trump at the end of 2017—the analysis showed just how well the Wall Street giants have fared even as they cut back their work forces approximately 1,200 people over the same time period.
“The tax savings have spurred the banks to record profit,” Bloomberg‘s Yalman Onaran reported. “The six firms posted $120 billion in net income for 2019, inching past 2018’s mark. They had never surpassed $100 billion before the tax cuts.”
Morris Pearl, chair of Patriotic Millionaires, which advocates for higher taxes on the wealthy and large corporations, said the latest figures only further prove what critics of the Republican tax giveaway knew and predicted since it was first proposed—that it was a gift to big banks and a scam perpetrated against regular people by Trump.
“The Trump administration touted that the average American was going to get $4,000 from their signature tax legislation,” Pearl told Common Dreams. “If you average six bank executives getting $32 billion while millions of people get $0, maybe that does average to $4000 per person. It’s still reprehensible and fiscally irresponsible that just six banks got a $32 billion windfall while ordinary Americans are struggling.”
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