Wall Street Banks Reap $14 Billion in Trump Tax Cuts, Share Little With Workers

The Trump-GOP tax law has rewarded America's big Wall Street banks and financial firms with an estimated $14 billion in tax savings last year alone. The nation's Big 6 Wall Street banks, Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo, are among the biggest winners from the tax cuts.

The bulk of these huge tax-cut savings is being used to further enrich shareholders and executives while sharing little or nothing with rank-and-file workers. In fact, only Bank of America, JP Morgan Chase, and Wells Fargo have announced plans to pass along some of this bounty to their employees, in the form of pay raises and one-time bonuses.

These bonuses and pay increases represent a small fraction of the industry's tax savings. Meanwhile, big-bank stockholders are getting 41 times more in just three months than workers have been promised in one-time bonuses and pay raises this year. The tax cuts have fueled a surge in buybacks, with corporations announcing $457 billion in new planned stock buybacks since the law was passed.

The wealthy are benefitting disproportionately from these payouts, as they own most corporate stock. In fact, the wealthiest 10% of American households own 84% of all shares, while the top 1% own 40%. Buybacks can artificially inflate share prices, making corporate executives and other shareholders even wealthier.

Last year, the CEOs of the Big 6 banks enjoyed annual pay packages averaging a hefty $22 million. The average ratio of CEO pay to median worker pay among the Big 6 was 272 to 1.