One year later: GOP tax scam results in $9 billion in profits for big banks

"These shameful actions—and the Republican tax law that permitted them—indicate just how rigged the system is against working people and the middle class."

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The massive struggle against the GOP tax bill may have faded from the minds of most Americans one year later, but the fears that propelled the resistance to fight against the tax scam are coming true.

In the past year since the Republican Party pushed through their corporation-loving tax bill, corporations and the mega-rich have seen record profits while American workers have seen little to nothing.

The biggest winners of the bill so far are America’s six largest banks: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. The six banks reported outrageous third-quarter profits and according to the Not One Penny coalition, have already benefitted in $9 billion in extra profits as a direct result of the GOP tax bill.

Image credit: Reuters

Not One Penny, a coalition that fights for middle-class Americans to pay #NotOnePenny for massive tax cuts for millionaires, billionaires, and wealthy corporations, released a statement saying, “These latest filings show that big banks have stopped at nothing to make more money—and that the GOP’s tax law gave them license to put profits over people.”

“These six banks have constantly chosen to use these tax breaks to enrich their shareholders and executives while laying off employees and exploiting consumers,” says Not One Penny spokesperson Ryan Thomas, “these shameful actions—and the Republican tax law that permitted them—indicate just how rigged the system is against working people and the middle class.”

As expected, American workers have seen little to no profit from the GOP tax plan this past year. Wages for workers have continued to fall, while CEO pay has continued to skyrocket.

Read below for Not One Penny’s full breakdown of Wall Street’s latest earning report:

  • Bank of America: The bank has seen a $3.1 billion tax cut so far this year due to the 2017 tax law. It announced earnings of $7.2 billion this quarter for a total of $20.9 billion so far this fiscal year. Since the tax law was passed, Bank of America announced a $20.6 billion stock buyback program and this quarter the company spent $6.6 billion on buybacks and dividends, enriching corporate shareholders. In May, Bank of America announced the closure of an office in California, resulting in 575 layoffs. The bank also agreed to pay $15 million to settle claims that its bankers overcharged their clients on securities.
  • Citigroup: The bank has enjoyed a $1.3 billion tax cut so far this year due to the 2017 tax law and announced earnings of $4.6 billion this quarter for a total of $13.7 billion so far this fiscal year. Since the tax law was passed, Citigroup announced a $17.6 billion stock buyback program and this quarter, the company spent $6.4 billion on buybacks and dividends, both of which enrich corporate shareholders. Meanwhile, in June, Citibank laid over off over 100 workers, paid$100 million to settle charges that it manipulated interest rates, and was forced to spend $355 million in refunds to millions of customers it was overcharging interest.
  • Goldman Sachs: Due to the 2017 tax law, the bank has enjoyed a $353 million tax break so far this year. Goldman Sachs announced earnings of $2.5 billion this quarter for a total of $7.5 billion so far this fiscal year. Since the tax law was passed, Goldman Sachs announced a $5 billion stock buyback program and this quarter, the company spent $1.2 billion on buybacks and dividends, both of which enrich corporate shareholders. Meanwhile, it has closed up shop in Cedar Rapids, resulting in layoffs for 39 employees, while it constructs a new office for its outgoing CEO that could cost up to half a million dollars.
  • J.P. Morgan: The bank has seen a $2.1 billion tax cut so far this year due to the 2017 tax law, and announced earnings of $8.4 billion this quarter for a total of $25.4 billion so far this fiscal year. Since the tax law was passed, JP Morgan announced a $20.7 billion stock buyback program and this quarter the company spent $6.9 billion on buybacks and dividends, which enrich corporate shareholders. The company plans to spend 151 times what it spent on wage increases for workers on stock buybacks. At the same time, JP Morgan announced that it will lay off 400 employees in its consumer home-lending business. In August, the company laid off 100 employees in its asset management division.
  • Morgan Stanley: The bank, which has enjoyed a $738 million tax cut so far this year due to the 2017 tax law, announced earnings of $2.1 billion this quarter for a total of $7.2 billion so far this fiscal year. Since the tax law was passed, Morgan Stanley announced a $4.7 billion stock buyback program and this quarter, the company spent $1.2 billion on buybacks and dividends, both of which enrich corporate shareholders.
  • Wells Fargo: Wells Fargo has enjoyed a $1.5 billion tax cut from the tax law, and announced earnings of $6 billion this quarter for a total of $16.3 billion so far this fiscal year. Since the tax law was passed, Wells Fargo announced a $24.5 billion stock buyback program and this quarter the company spent $8.9 billion on buybacks and dividends, both of which enrich corporate shareholders. Last month, Wells Fargo announced a plan to cut up to 10 percent of its workforce in the next three years, a loss of between 13,250 and 26,500 jobs. Wells Fargo has been mired in scandals this year, and is involved in numerous settlements.  It is being forced to pay $1 billion, the largest fine ever imposed by the Consumer Financial Protection Bureau, in addition to millions more in refunds to customers for misleading and predatory practices.

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