It’s Still Bad: Under GOP Tax Scam, “Shareholders” Win, “Future Generations” Lose

“Blowback” So Bad for Vulnerable Republican Senators, White House “Privately” Floating Move To Shield Incumbents From Corporate Tax Giveaway

An analysis from an expert at the independent Tax Policy Center shows that, more than two years after Republicans rammed their corporate tax giveaway through Congress, “future generations” are left holding the bag while “shareholders—who tend to be rich” are seeing the most benefit. 

The “blowback” back home for GOP senators has been so bad that the Trump administration is “privately” attempting to rewrite history after its disastrous 2017 tax bill hasn’t shown “any signs” of increased investment and wage growth and vulnerable Republican incumbents are forced to answer for their deeply unpopular “lopsided giveaway to the corporate sector.” 

From the Tax Policy Center:

• Who benefited from the corporate tax rate cuts? Shareholders in the short run, which could last many years.

• …And who are these winners? Foreign investors own roughly 35% of total US equity (public and private). And for US investors in equity, the top 1% own about 57% of shares while the bottom 90% own about 12%.  

• And who lost? Future generations, who eventually must repay the staggering US debt. The TCJA will add almost $2 trillion to nation’s nearly $18 trillion public debt over 10 years, of which about $1.4 trillion was attributable to corporate income tax rate cuts. 

• So, what did the TCJA’s corporate tax rate cuts bring us? Tax cuts for shareholders—who tend to be rich, including a sizable block of foreigners—and, eventually, tax increases or spending cuts for the rest of us.

“Republicans are attempting revisionist history with an election-year stunt designed to shield vulnerable incumbents from their disastrous tax scam, but voters won’t forget how GOP senators gave giant corporations a handout at their expense,” said DSCC spokesperson Helen Kalla. “Every Republican senator on the ballot will be forced to answer for this giveaway to CEOs and wealthy shareholders and their broken promise to hardworking families.”

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