No “Middle Class Miracle”: Who’s Really Celebrating Tax Day 2018
Today marks the first tax day since the Republican tax bill was signed into law by President Trump. Already, it has become crystal clear that this poorly designed bill is overwhelmingly benefiting the wealthiest few while leaving working families to pick up the tab.
The Republican tax bill was touted as a “middle-class miracle,” but the biggest winners have been corporate executives and wealthy stockholders. In 2018 alone, corporations have spent more than $250 billion on corporate stock buybacks. These buybacks artificially boost a corporation’s stock price to provide a big reward for executives and wealthy shareholders. Meanwhile, workers in New York and across the country were left behind. According to one study, to date corporations have spent 37 times as much to buy back stocks as they are spending on workers’ one-time bonuses and wage hikes. That is totally backwards.
Instead of lining corporate executives’ pockets, Democrats have focused on meaningful investments in the middle class. Our Jobs and Infrastructure Plan would make a historic $1 trillion federal investment to modernize our crumbling infrastructure, create jobs, stimulate economic growth and truly provide that “shot in the arm” the Republicans claimed that their tax bill would be. This plan would focus on building the middle class — not further enriching those already at the top.
Democrats were willing to work with Republicans on tax reform that would increase middle-class incomes. Unfortunately, instead of working with Democrats on real tax reform, Republicans forced through a tax giveaway to the wealthy and corporations that will burden our nation with a $1.9 trillion increase in our deficit over the next 10 years. Republicans will try again to use false concern over the deficit as an excuse to target programs that are crucial to our middle class: Social Security, Medicare, and Medicaid. Despite President Trump’s hollow campaign promises, stating that these vital programs would not be cut, Congressional Republicans are already sharpening their knives. Even the White House legislative director has suggested that cutting these crucial programs is on the table, despite President Trump’s repeated commitments to preserve them. By threatening programs that Americans depend on like Medicare and Social Security, while giving corporate executives a huge pay day, Republicans are sending a clear message to the American people: “we are not on your side.”
Democrats support real tax reform and remain willing to work with President Trump and Republicans to come up with a bipartisan solution that would truly benefit the middle class. We need tax reform that invests in middle-class incomes and gives hardworking families more opportunities to get ahead so future generations can continue making America great. It is about time Republicans stop simply talking a big game and start actually doing things for the American people — not wealthy Republican donors. Hardworking Americans comprise the backbone of the economy and deserve a better deal so that this country works for them, not the wealthiest few.