GOP Tax Scam 2.0: Another Tax Cut for the Wealthiest Americans At the Expense of Middle Class Families
For Immediate Release:
September 25, 2018
Contact Info:
Mariel Saez 202-225-3130
This week, House Republicans are doubling down on their deeply unpopular tax law by bringing another tax cut for the wealthy to the House Floor for a vote. As Republicans attempt to jam their GOP tax scam 2.0 through the House without a single hearing or witness, here’s a look at what we know about the legislation:
1. We know Republicans broke their promises to the American people with the first bill, including the false claim that every American would see a $4,000 wage increase as a result of its passage; that its benefits would not favor the 1%; and that it would defy arithmetic by not adding $1.8 trillion to the deficit because it would pay for itself in economic growth, despite projections to the contrary from the CBO, JCT, and outside experts across the political spectrum.
2. We know the GOP tax scam 2.0 would worsen the already massive budget shortfalls caused by the first round of tax cuts, which added $1.8 trillion to the deficit to give tax cuts to the wealthiest and corporations.
4. We also know – because the White House and Congressional Republicans have said so on the record – that they plan to cut earned benefits such as Social Security, Medicaid, and Medicare after adding trillions to the deficit with the tax bills. This year, the Medicare and Social Security Trust Fund released reports that Medicare is projected to become insolvent three years earlier than projected due to decreased revenues from the first GOP tax scam.
As Republicans continue their same failed playbook, Democrats will continue to oppose another tax scam that cuts taxes for the wealthiest in America and corporations at the expense of the middle class and adds trillions to the deficit. Instead, Democrats are focused on policies For the People, including lowering health care costs and prescription drug costs, raising wages, and cleaning up Republicans’ culture of corruption.
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1. We know Republicans broke their promises to the American people with the first bill, including the false claim that every American would see a $4,000 wage increase as a result of its passage; that its benefits would not favor the 1%; and that it would defy arithmetic by not adding $1.8 trillion to the deficit because it would pay for itself in economic growth, despite projections to the contrary from the CBO, JCT, and outside experts across the political spectrum.
2. We know the GOP tax scam 2.0 would worsen the already massive budget shortfalls caused by the first round of tax cuts, which added $1.8 trillion to the deficit to give tax cuts to the wealthiest and corporations.
With annual deficits projected to top $1 trillion, analysis from the Tax Policy Center indicates the second GOP tax scam would add another $3.2 trillion to the deficit in the first ten years after it takes effect.
3. We know it is a giveaway to the wealthy at the expense of the middle class. Their first tax scam gave 83% of the benefits to the top 1% and raised taxes for 86 million middle-class households. By making tax cuts for the wealthy and pass through businesses permanent this time around, they are doing little to change that.
According to Tax Policy Center’s analysis of the GOP tax scam 2.0, the wealthiest 0.1% get an average tax cut of $105,320 in the first year it takes effect in 2026—meaning those making more than $4 million per year will see an additional tax cut larger than what more than 60%, or 123 million, of American households earn over the entire year.
4. We also know – because the White House and Congressional Republicans have said so on the record – that they plan to cut earned benefits such as Social Security, Medicaid, and Medicare after adding trillions to the deficit with the tax bills. This year, the Medicare and Social Security Trust Fund released reports that Medicare is projected to become insolvent three years earlier than projected due to decreased revenues from the first GOP tax scam.
“A top economic adviser to President Donald Trump said on Monday he expects U.S. budget deficits of about 4 percent to 5 percent of the country’s economic output for the next one to two years, adding that there would likely be an effort in 2019 to cut spending on entitlement programs.” [Reuters, 9/17/18]
5. The American people know this bill is more of the same failed policies from Republicans that cut taxes for those at the top at the expense of the middle class.
“A survey commissioned by the Republican National Committee has led the party to a glum conclusion regarding President Donald Trump’s signature legislative achievement: Voters overwhelmingly believe his tax overhaul helps the wealthy instead of average Americans.”
“By a 2-to-1 margin – 61 percent to 30 percent – respondents said the law benefits ‘large corporations and rich Americans’ over ‘middle class families,’ according to the survey… The result was fueled by self-identified independent voters who said by a 36-point margin that large corporations and rich Americans benefit more from the tax law.” [Bloomberg News, 9/20/18]
“By a 2-to-1 margin – 61 percent to 30 percent – respondents said the law benefits ‘large corporations and rich Americans’ over ‘middle class families,’ according to the survey… The result was fueled by self-identified independent voters who said by a 36-point margin that large corporations and rich Americans benefit more from the tax law.” [Bloomberg News, 9/20/18]
As Republicans continue their same failed playbook, Democrats will continue to oppose another tax scam that cuts taxes for the wealthiest in America and corporations at the expense of the middle class and adds trillions to the deficit. Instead, Democrats are focused on policies For the People, including lowering health care costs and prescription drug costs, raising wages, and cleaning up Republicans’ culture of corruption.
Click here to read the PDF.
Follow Whip Hoyer on Facebook, Twitter, and Instagram