Stock Investors Will Benefit Most From Corporate Tax Overhaul

One of the worries about the large tax cuts for corporations is that stock-market investors will benefit more than working-class wages. There is a growing concern that much of the savings will be used for dividends or share repurchases, which would potentially boost the returns for those invested in the stock market. This is likely to accelerate U.S. inequality because the wealthy are now by far the largest owners of equities.

Almost half of all American households own some stock through direct purchases, mutual funds, ETFs or pensions, but the top decile controls the bulk of those assets. According to research from the New York University economist Edward Wolff, the top 10 percent of American households1515094898846 now own 84 percent of all stocks. That’s up from 77 percent ownership in 2001.