Number of the Day: $13 Billion

Number of the Day: $13 Billion

A congressional aide places a placard on a podium for the House Republican's legislation to overhaul the tax code on Capitol Hill in Washington
JOSHUA ROBERTS/Reuters
By The Fiscal Times Staff

An analysis by Bloomberg finds that the roughly 180 companies in the S&P 500 that have reported earnings for the first three months of the year saved almost $13 billion thanks to the corporate tax cut enacted late last year. Those companies’ effective tax rate dropped by more than 6 percentage points on average. About a third of the tax savings went to 44 financial firms.

Chart of the Day: Public Spending on Job Programs

Martin Rangel, a worker at Bremen Castings, pours motel metal into forms on the foundry’s production line in Bremen
STAFF
By The Fiscal Times Staff

President Trump announced on Thursday the creation of a National Council for the American Worker, charged with developing “a national strategy for training and retraining workers for high-demand industries,” his daughter Ivanka wrote in The Wall Street Journal. A report from the president’s National Council on Economic Advisers earlier this week made it clear that the U.S. currently spends less public money on job programs than many other developed countries. 

Economists See More Growth Ahead

iStockphoto
By The Fiscal Times Staff

Most business economists in the U.S. expect the economy to keep chugging along over the next three months, with rising corporate sales driving additional hiring and wage increases for workers.

The tax cuts, however, don’t seem to be playing a role in hiring and investment plans. And the trade conflicts stirred up by the Trump administration are having a negative influence, with the majority of economists at goods-producing firms who replied to the most recent survey by the National Association for Business Economics saying that their companies were putting investments on hold as they wait to see how things play out. 

New Tax on Non-Profits Hits Public Universities

		<p>This complex offers upperclassmen fully furnished single rooms with private bathrooms. Rooms are wired for TV cable, with dozens of popular channels and Internet access; there are also refrigerators and microwaves. All of the buildings have mail pick
Turner Construction Company
By The Fiscal Times Staff

The Republican tax bill signed into law late last year imposed a 21 percent tax on employees at non-profits who earn more than $1 million a year. According to data from the Chronicle of Higher Education cited by Bloomberg, there were 12 presidents of public universities who received compensation of at least $1 million in 2017, with James Ramsey of the University of Louisville topping the list at $4.3 million.  Endowment managers could also get hit with the tax, as could football coaches, some of whom earn substantially more than the presidents of their institutions.

Deficit Jumps in Trump’s First Fiscal Year

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By Michael Rainey

The federal budget deficit rose by 16 percent in the first nine months of the 2018 fiscal year, which began last October. The shortfall came to $607 billion, compared to $523 billion in the same period the year before, according to a U.S. Treasury report released Thursday and reported by Bloomberg. Both revenue and spending rose, but spending rose faster. Revenues came to $2.54 trillion, up 1.3 percent from the same nine-month period in 2017, while spending came to $3.15 trillion, up 3.9 percent.