Republicans Pass Their $1.8 Trillion Tax Giveaway for the Rich - at the Expense of the Middle Class
This cartoon by David Fitzsimmons of the Arizona Star perfectly captures what the Republican tax bill is really all about -- giving huge tax cuts to the wealthy at the expense of the middle class.
The simple truth is, the rich are getting richer, the poor are getting poorer, and the middle class is getting crushed. And this disastrous Republican tax bill makes the situation even worse.
First off, this bill hands trillions of dollars in tax cuts to the wealthiest 1% of Americans, and super rich corporations.
The Republican tax bill gives 83% of its tax cuts to the richest 1% of Americans, and permanently cuts the corporate tax rate from 35% to 21%. And it doubles the estate tax exemption, making the richest 1% even richer.
Republican leaders believe that giving the rich extra money will somehow miraculously create more jobs and raise wages.
But here’s the simple fact – Giving the rich more money will not create a trickle-down effect – it never has. American corporations are already hoarding $2.5 trillion in overseas bank accounts, and $2 trillion more here at home.
There is no evidence that tax cuts create jobs or cause wealthy CEOs to increase their employees’ wages. In fact, the opposite is true: Middle class wages have stagnated for a quarter century, while the rich have hoarded trillions and trillions for themselves.
Second, the simple fact is that this tax bill raises taxes on 83 million middle class households.
Millions of middle class families will see their taxes go up, according to an independent analysis by the Tax Policy Center.
At best, some middle class Americans get enough to buy a hubcap on a Mercedes Benz – while the millionaires and billionaires get enough to buy a whole Mercedes – if not a fleet of Mercedes!
And if that’s not bad enough, the small middle class tax benefits are only temporary – set to expire – while the tax cuts for the rich are massive and permanent.
Finally, this Republican bill – by increasing the deficit by $1.5 trillion dollars – sets the stage for the gutting of Medicare, Social Security and Medicaid.
Republicans have made it clear – they intend to pay for these tax cuts for the rich by highway robbery and privatization of Medicare and Social Security and the wholesale gutting of Medicaid. This is absurd. Social Security has never missed a payment, never failed to make a profit, and has lifted millions of Americans out of poverty.
Medicare, which funds and supports health care for our seniors, has – in just a few generations –helped to double life expectancy and dramatically increased the quality of life in America.
And Medicaid provides a safety net for millions of seniors, children with disabilities, and others in need who might otherwise fall through the cracks in our society.
Let’s be clear: Medicare and Social Security are not entitlement programs. These are hard earned benefits that Americans pay for from the very first hour of the very first day on the job.
But make no mistake— when Republicans talk about “entitlement reform,” they’re talking aboutcutting Medicare and Social Security.
In the spirit of the holiday season, I’d like to close with an observation by Charles Dickens.
In the story, “A Christmas Carol,” someone points out to Mr. Scrooge that the holidays are “the one time when men and women open their hearts, and think of people below them as if they really were fellow-passengers to the grave, and not another race of creatures bound on other journeys.”
So, I’ve reminded Republican leadership: The middle class are your fellow passengers in this life. They’re the ones struggling to make ends meet, just trying to put food on the table, take care of a sick parent, or buy clothes for their kids. So, in the spirit of the holiday season, don’t be Scrooges.
We will keep you posted as events proceed. Meanwhile, I want to hear your thoughts. Feel free to contact any of our offices listed below or send me an email.
Read the full letter HERE.