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The Republican Tax Scam Revealed More and More

Apr 17, 2018

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Every month, new nonpartisan analyses add to the growing pile of evidence that the new Republican tax law is nothing more than a scam on the American people. The budget and economic outlook recently released by the Congressional Budget Office shows the Republican tax scam will add $1.9 trillion to federal budget deficits over the 2018-2028 period, even after accounting for economic growth. It also finds that the new law is a major factor in exploding the federal debt held by the public, estimated to reach 96 percent of GDP in 2028, a level not seen since World War II. Four months in, it is increasing clear that none of the Republican claims about their tax scam are true. The law will not significantly grow the economy over the long run to pay for itself; it will mostly benefit corporations and wealthy shareholders; and it will not boost workers’ pay significantly.

The Republican tax scam does not significantly grow the economy to pay for itself — Expert analyses continue to show the tax scam will explode our deficits and debt, which will create a drag on our economy over the long run. CBO warns the dramatically worsened fiscal outlook—due in large part to the GOP tax scam—could put the nation at risk for a longer‑than‑necessary recession, should there be an economic downturn.   

The tax scam benefits corporations and wealthy shareholders, not workers — Corporate behavior during the first four months of the GOP tax law reveals that their huge tax cut has mostly benefitted their wealthy shareholders and executives through stock buybacks and dividends, not workers.

The massive tax cut to corporations does not trickle down to American workers — As the evidence in our previous report shows, companies’ bonus and wage increase announcements tell us nothing about the GOP tax law’s impact on workers, because these companies would have made business decisions to keep and attract good workers in a competitive labor environment regardless of the tax cut. American workers deserve every bonus and wage increase rewarding their hard work, regardless of how companies are characterizing them. However, the bonus and wage announcements that Republicans are attributing to the tax law pale in comparison to the huge benefits going to their wealthy shareholders.

The huge tax cut to corporations does not boost workers’ pay in a meaningful way — As noted above, American workers have earned every penny they have received in bonuses and wage increases, regardless of how their companies are characterizing them. However, many workers are not seeing increases in their paychecks and the few who are seeing increases are seeing amounts far less than what Republicans have promised in order to sell their tax scam.

Next Up: Target Benefits American Families Rely On — The Republican tax scam cuts taxes for the rich, while significantly increasing deficits and the national debt. Republicans remain committed to their three-step plan to give to the rich, which results in skyrocketing deficits, and then make everyone else pay for it with massive cuts to Medicare, Medicaid, and other top priorities for American families.