April 17, 2018/Press Release

Tax Day 2018: Republican Tax Plan Serves Wealthy Corporations and Big Drug Companies

COLUMBIA, Mo. — Today is tax day, and evidence shows that the recently passed Republican tax bill is already disproportionately benefitting “the wealthy and company shareholders, rather than middle-class workers.” Pharmaceutical companies are among those who have benefited most from the plan and are using their billions of dollars in savings to enrich themselves — all while raising drug prices and leaving many Missourians struggling to afford their prescriptions.

Here is a look at what the press has had to say about the Republican tax bill: 

“Most of the extra cash from tax savings is going into the pockets of stock shareholders through dividend increases and companies buying back their own stock in hopes of boosting its price.” [USA Today]

“Health care companies will add tens of billions of dollars to their bottom lines this year thanks to savings from the Republican tax cut package. But only a fraction of that money will benefit patients.” [Axios]

“The pharmaceutical industry is using a large portion of its windfall from Republicans’ corporate tax cuts to boost its stock prices.” [Axios]

“Nine drug companies are spending a combined $50 billion on new share buyback programs… announced during or after the passage of the Republican tax bill. That money is enriching hedge funds, other Wall Street investors and top drug company executives, but it isn’t necessarily helping patients.” [Axios]

“The tax-bill that Trump championed provided an additional windfall for Big Pharma beyond cutting the corporate tax rate from 35 percent to 21 percent. The bill included a repatriation deal for companies holding cash overseas, including the $200 billion held by pharmaceutical companies.” [St. Louis Post-Dispatch Editorial]

“U.S. corporations got a big tax cut in December… but the sharing of wealth hasn’t been as generous as hoped.” [USA Today]

“Republicans said their tax bill would go to workers. Instead, it’s going to Wall Street.” [Vox]

“If the tax cuts were really aimed at workers, as President Trump and other Republicans said, there were simpler ways of getting money to workers than passing it through the books of corporations.” [Fast Company]

“Companies have been eager to put the savings they’ve reaped from the new tax law into their shareholders’ pockets.” [Vox]

“It is clear that the shareholder class will be the largest beneficiary of this overhaul to the tax code.” [Yahoo]

“Critics weren’t wrong in 2017 to say that the tax cut would exacerbate inequality, helping rich investors at the expense of workers.” [The Atlantic]

“The tax bill was sold as a way to create jobs and boost stagnant wages. So far… corporations have been showing more concern about shareholders than about employees or the economy as a whole.” [USA Today]

“A new survey of U.S. companies from analysts at Morgan Stanley estimates that 43 percent of the savings from the Republican tax cut bill will be paid to investors in the form of higher dividends and stock buybacks.” [St. Louis Post-Dispatch Editorial]

“Even though a lower corporate tax rate frees up more cash for a health care system that more patients are finding increasingly unaffordable, patients should not expect the health industry’s windfall to lead to lower premiums, reduced prices or major industry changes.” [Axios]