It’s the tax cuts… that have helped propel banking profits to a record $60.2 billion in the second quarter. This record profit beats last quarter’s record profit by a whopping $4B+ and profits are up 25% compared the same time last year. Apparently, over half of this newfound wealth has come from the drastically lowered corporate tax rates created by Trump himself.
They take their tax savings… and help the rich get richer. Well, that is an argument some are making – really, these banks are paying higher dividends and funding stock buybacks. The bankers are claiming that they are pumping money back into the economy, which in-turn, helps the economy.
The bankers are also saying… that tax cuts are not the reason that they are doing so well. It is the economy that is producing such excellent results. That’s right – more lending because people can’t get enough cold, hard cash. However, to be realistic, it is a combination of tax reform, strong lending, and the economy. So if you’re someone that thinks bankers are crooks – hopefully, this doesn’t put a damper on your day.