---
[ SAY WHAT? ](https://www.citywatchla.com/say-what)
# After Trump Tax Cuts, 40% of Americans Can't Afford Basic Necessities
August 30 2018
Written by Jake Johnson.
[](https://www.addtoany.com/share)
While rich companies like Walmart and Target are enjoying huge profit boosts, most American workers have seen their wages decline over the past several months—a fact that undermines Trump and the GOP's glowing assessment of the U.S. economy (Photo: Noah Berger/Reuters)
Just days after an [alarming study](https://www.urban.org/research/publication/material-hardship-among-nonelderly-adults-and-their-families-2017) by the Urban Institute found that nearly half of the American public can't afford basic necessities like food, healthcare, and housing, [new Commerce Department data](https://www.wsj.com/articles/u-s-corporate-profits-soared-in-second-quarter-boosted-by-tax-cuts-and-economic-growth-1535559230) released on Wednesday showed that corporate profits are soaring to new heights thanks in large part to President Donald Trump's $1.5 trillion tax cuts.
Viewed side-by-side, this contrast between booming profits for corporations and dwindling quality of life for much of the U.S. population provides a striking picture of America's two-tiered economy, one that has become even more lopsided in favor of the rich since President Donald Trump took office in 2017.
While rich companies like Walmart and Target are enjoying huge profit boosts, most American workers have seen their [wages decline](https://www.commondreams.org/news/2018/07/27/you-cant-eat-gdp-reminder-most-workers-are-struggling-trump-and-corporate-media-tout) over the past several months—a fact that undermines Trump and the GOP's glowing assessment of the U.S. economy.
As the *Wall Street Journal*reported on Wednesday, the Commerce Department said that "its broadest measure of after-tax profits across the U.S. rose 16.1 percent in the quarter \[that\] ended June 30 from a year earlier, the largest year-over-year gain in six years."
"Because of the lower corporate tax rate signed into law last year," the *Journal* added, "taxes paid by U.S. companies in the quarter were down 33 percent from a year earlier, according to the government data, or more than $100 billion at an annual rate."
Massive Wall Street banks have been some of the biggest beneficiaries of President Donald Trump's profoundly unequal economy. According to Federal Deposit Insurance Corporation (FDIC) [data out last week](https://www.reuters.com/article/us-usa-fdic-results/u-s-banking-profits-hit-record-60-billion-in-second-quarter-fdic-idUSKCN1L81RP), America's financial sector—which recently received [a bipartisan gift](https://www.commondreams.org/news/2018/03/15/10th-anniversary-wall-street-crash-democrats-help-gop-set-stage-next-one) in the form of a major regulatory rollback—saw a record $60 billion profit boom.
"Last quarter, big banks set a new record with $60 billion in profits—half of it as a result of the GOP tax scam," Americans for Tax Fairness [wrote](https://twitter.com/4TaxFairness/status/1034945426858958848) in response to the new data. "What did working families get? More empty promises that corporations would use their tax cuts to boost wages. If it sounds unfair, that's because it is."
*(Jake Johnson reports for [Common Dreams](http://commondreams.org) … where this piece was first posted.)*
*-cw*
[  ](https://www.citywatchla.com/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")
[  ](https://www.citywatchla.com/component/banners/click/98 "Donna Tryfman - HS1-1")
[  ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Power Savers)")
[  ](https://www.citywatchla.com/component/banners/click/111 "David DeJute Campaign")
[  ](https://www.citywatchla.com/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")
[  ](https://www.citywatchla.com/component/banners/click/112 "Anna Reitano Vertical R. Col")
## Get The News In Your Email Inbox Mondays & Thursdays
Email
[  ](https://www.citywatchla.com/component/banners/click/110 "Something You Should Know")
[  ](https://www.citywatchla.com/component/banners/click/113 "Rhonda Haymon campaign")
---
## Featured CityWatch Stories
[  ](https://www.citywatchla.com/los-angeles/33444-lahsa-is-gone-but-the-homeless-industrial-complex-lives-on)
### [LAHSA Is Gone, but the Homeless-Industrial-Complex Lives On](https://www.citywatchla.com/los-angeles/33444-lahsa-is-gone-but-the-homeless-industrial-complex-lives-on)
HOMELESSNESS - Los Angeles’s homelessness program is in complete disarray, undermined by systemic gridlock, structural…
[  ](https://www.citywatchla.com/neighborhood-politics/33434-karen-bass-trails-in-reelection-race-can-she-turn-it-around)
### [Karen Bass Trails in Reelection Race — Can She Turn It Around?](https://www.citywatchla.com/neighborhood-politics/33434-karen-bass-trails-in-reelection-race-can-she-turn-it-around)
WESTSIDE - As of September 27, 2026, Karen Bass is in a substantially weaker position than she was entering the June pr…
[  ](https://www.citywatchla.com/finance/33442-the-settlement-bill-nobody-is-managing-inside-los-angeles-countys-sheriff-litigation-tab)
### [The Settlement Bill Nobody Is Managing — Inside Los Angeles County's Sheriff Litigation Tab](https://www.citywatchla.com/finance/33442-the-settlement-bill-nobody-is-managing-inside-los-angeles-countys-sheriff-litigation-tab)
THE NAVARRO REPORT - Last month, the Los Angeles County Board of Supervisors approved a $12.5 million settlement over t…
[  ](https://www.citywatchla.com/voices/33461-are-small-businesses-and-workers-fighting-their-true-adversary-in-the-fast-food-battle)
### [Are Small Businesses And Workers Fighting Their True Adversary In The Fast-Food Battle?](https://www.citywatchla.com/voices/33461-are-small-businesses-and-workers-fighting-their-true-adversary-in-the-fast-food-battle)
THE WORKPLACE - On Sept. 8, the Los Angeles City Council voted to get one step closer to expanding Fair Work Week to fa…
[  ](https://www.citywatchla.com/neighborhood-politics/33445-follow-the-money-the-underdog-vs-the-bike-path)
### [Follow the Money: The Underdog vs. the Bike Path](https://www.citywatchla.com/neighborhood-politics/33445-follow-the-money-the-underdog-vs-the-bike-path)
PUBLIC ACCOUNTABILITY - Years ago, I was shooting ringside as a boxing photographer when I noticed Sylvester Stallone s…
---
## [ SAY WHAT? ](https://www.citywatchla.com/say-what)
[  ](https://www.citywatchla.com/say-what/29907-oh-for-f-ks-sake)### [Oh For F\*\*k's Sake](https://www.citywatchla.com/say-what/29907-oh-for-f-ks-sake)
[  ](https://www.citywatchla.com/say-what/29692-a-monument-to-cruelty)### [A Monument To Cruelty](https://www.citywatchla.com/say-what/29692-a-monument-to-cruelty)
[  ](https://www.citywatchla.com/say-what/29532-omg-now-theyre-coming-for-our-cats-and-chairs-and-ducks)### [OMG Now They're Coming For Our Cats and Chairs and Ducks](https://www.citywatchla.com/say-what/29532-omg-now-theyre-coming-for-our-cats-and-chairs-and-ducks)
[  ](https://www.citywatchla.com/say-what/29066-shame-shame-shame-martha-ann-is-an-ungodly-piece-of-work)### [Shame, Shame, Shame: Martha-Ann Is an Ungodly Piece of Work](https://www.citywatchla.com/say-what/29066-shame-shame-shame-martha-ann-is-an-ungodly-piece-of-work)
[  ](https://www.citywatchla.com/say-what/28868-they-walk-among-us-mississippi-goddamn-still)### [They Walk Among Us: Mississippi Goddamn, Still](https://www.citywatchla.com/say-what/28868-they-walk-among-us-mississippi-goddamn-still)