Commentary: Today’s Tax Day and if you’re feeling frustrated by Trump and Republicans’ approach to taxes, you’re not alone. Trump and Republicans promised their signature tax bill would be for the middle class, that it would create jobs, spur investment and wage growth, and that it would pay for itself. Those were all lies.
The truth is that the Trump tax was written by Republicans for their donors and gives massive windfalls to Wall Street, big corporations, and the wealthiest Americans - more than 80% of its benefits by 2027 will go to the top 1%! The worst part? It all comes at the expense of American workers. In fact:
· Corporations used their massive windfalls to benefit their wealthy shareholders - not their workers - and in record numbers.
· Corporations only gave their workers one-time bonuses, not the wage increase they promised.
· Some corporations that announced one-time bonuses have even simultaneously laid off their workers.
Meanwhile, Republicans are giving regular Americans the equivalent of a pat on the head - look no further than Paul Ryan’s celebration of a tax cut for teachers of a whopping $1.50.
Americans see through Republicans’ tax lies and Democrats will continue to fight for tax fairness and to create greater economic opportunities for all Americans, not just those at the top.
Tax Day Truth #1: The winners of the Trump tax - by far - are wealthy corporations and the top 1%.
Republicans promised a middle-class tax bill, but in reality the Trump tax gives benefits to the top one percent, big corporations, and Wall Street at the expense of working families.
· The Trump tax givesmore than 80 percent of the benefits to the top one percent by the end of the decade.
· The Trump tax gives the richest one percent of Americans an average tax break of about$33,000 this year, while lower-income Americans an average tax break of just$40 – that’s more than 800 times more.
· The Trump tax wouldraise taxes on individuals by a cumulative $83 billion in 2027, and would raise taxes on average foreveryone earning under $75,000 by 2027.
· Last year, Wall Street bonuses totaled nearly$32 billion, the highest level since 2006, and Republicans passed the Trump tax which gavehundreds of billions more to Wall Street.
Tax Day Truth #2: The Trump tax is not helping workers:
Despite Republican claims, corporations are using their massive tax windfalls to benefit their wealthy shareholders, not their workers.
· Corporations have already announced more than $218 billion in planned buybacks, and are estimated to authorize at least$800 billion in buybacks this year, a51 percent increase from 2017.
· Republicans have touted one-time bonuses – not the longer-term wage increases they promised – that amount tolessthan three percent of what corporate shareholders are reaping.
· Companies that Trump and Republicans touted for giving one-time bonuses to employees have been simultaneouslylaying off their workers.
· Despite Republican promises, the Trump tax hasdone little to spur investment orwage growth, and most corporations say they have no plans to pass benefits on to their workers.
· The Trump tax actuallypromotes outsourcing and in many casesincentivizes corporations to lay off workers.
Tax Day Truth #3: Americans see through Republicans’ tax lies:
Americans see through Republicans’ lies and know that the Trump tax is not benefiting them.
· More than half of Americans say they see no change in their paychecks as a result of the Trump tax.
· More Americans say the Trump tax willhurt their family’s finances than say it help them.
· Nearly60 percent of Americans say the Trump tax will mostly help the rich.
· A majority of Americans continue to oppose the Trump tax.
Tax Day Truth #4: Republicans’ failed leadership:
Republicans have consistently shown their inability to responsibly govern, as they refuse to put American workers and middle-class families first.
· Republicans said the Trump tax would pay for itself, but the CBO says it will add$1.8 trillion to the deficit over the next decade.
· In total, because of Republicans’ failed leadership, the budget deficit will top$1 trillion in 2020 and the national debt would soar to more than$33 trillion in 2028.
· After they sent the deficit skyrocketing to pass tax cuts for the rich and big corporations, Republicans aretargetingthe social safety net, schools, infrastructure, and other programs, which will hurt many Americans across the country.
Tax Day Truth #5: Trump has still not released his tax returns
Trump and his family stand to gain a lot from the Trump tax, but we can’t know exactly how much because Trump refuses to release his tax returns.
· The Trump tax delivered an unprecedented “financial windfall” to the president and his family and could save himtensof millions of dollars.
· Trump stands to “benefit handsomely” from the Trump tax cutting the top rate from 39.6 percent to 37 percent.
· Trump and his family gain big from millions more dollars in exemptions from the estate tax.
· Trump’s business “wins, big league” from a 20 percent tax deduction on pass-through business income and aloopholethat allows real estate investors to take advantage of the deduction.