– The Trump tax cuts were pitched as a boon to US workers, with the administration arguing their benefits would trickle-down into rising wages.
– While the tax cuts have meant some Americans are keeping more of their paychecks, no discernible gains in wages have materialized thus far.
– Real average hourly earnings (adjusted for inflation) for all employees on private nonfarm payrolls were totally unchanged in June from one year earlier.
GDP Is Growing, but Workers’ Wages Aren’t
Source: Michael Madowitz and Seth Hanlon, Center for American Progress, July 26, 2018
President Donald Trump recently said that the U.S. economy is “stronger than ever before” and points to his tax plan as one of the major reasons why.1 But the fact is that workers are not getting ahead in the Trump economy. Official data released in recent weeks have shown that workers’ wages are flat or even slightly down, in real terms, over the last year.2 These data fly in the face of many tax plan boosters who have claimed that the bill’s passage has already been a boon to middle-class workers….