The GOP Tax Scam: Broken Promises to the American People

Issue Report

For Immediate Release:

September 13, 2018

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Today, Republicans are marking up their tax scam 2.0, which is skewed toward the wealthy and will add an additional $3 trillion to the deficit. As markup gets underway, here’s a reminder that the first tax scam has failed to produce the jobs and $4,000 pay raise for all Americans that Republicans promised. Instead the law added trillions to the deficit while raising taxes for 86 million middle-class households. Here’s a look at the broken promises of Republicans’ first tax scam:

1. Republicans promised that working families would see a $4,000 pay raise as a result of the tax law, but instead wages are falling and some workers are seeing layoffs.

Nine months after the GOP tax scam was enacted, wages have not increased for millions of Americans; instead, workers in non-supervisory roles have seen their wages fall since the passage of the GOP Tax Scam.
Instead of benefiting workers, the law has provided corporate CEOs with “eye popping payouts.”

2. Republicans promised the law would not cut taxes for the wealthy, but the law overwhelmingly benefits the top 1% of Americans.

Treasury Secretary Mnuchin claimed the tax law would not cut taxes for the wealthy. However, the law gives 83% of the benefits to the wealthiest in America, and corporations have used their enormous tax breaks on a record-breaking “explosion” of stock buybacks that enrich wealthy shareholders, rather than investing in expanding their workforces or giving raises to workers.

3. Republicans promised the GOP tax scam would simplify the tax code and make it easier to file taxes, including filing on a post card.

In July, the Government Accountability Office released a report that nearly 30 million Americans will owe money on their tax return due to complications implementing the tax scam.
The Joint Committee on Taxation says there are more special tax breaks, from 216 to 223 to be exact, as a result of the law than there were before.
The post card Republicans promised and held up as an example of the bill’s simplicity is, in fact, a tax form with six additional work sheets.
While corporations are breaking records for stock buybacks and dividends, small businesses owners have also spoken out about the complexities and uncertainty they face following the tax law’s enactment.

4. Republicans repeatedly promised the bill would pay for itself in economic growth. Instead, the law adds $1.8 trillion to the deficit over the next decade.

While Treasury Secretary Steven Mnuchin promised the tax scam would pay for itself in growth, the Congressional Budget Office analysis projects the bill will add $1.8 trillion to the deficit over the next ten years.
The fiscally unsustainable law is pushing the deficit over $1 trillion for the foreseeable future.
In the months following the tax scam, the Medicare and Social Security Trust Fund released their annual report that Medicare is now projected to become insolvent three years earlier than projected due to decreased revenues from the GOP tax scam.

5. President Trump promised he would lower health care costs for millions of Americans. Instead, the tax scam would result in 13 million Americans losing their coverage and increased costs for millions more.

After failing to pass their TrumpCare bill, Republicans repealed the individual mandate in their tax law, which will destabilize the market, is already cited as the reason for rate increases for millions of consumers, and will result in millions of Americans losing coverage.
An analysis by the Congressional Budget Office found that this will lead to 13 million Americans losing coverage over the next ten years and higher premiums and out-of-pocket costs for millions more.

Democrats will continue to oppose another tax scam that cuts taxes for the wealthiest in America and corporations at the expense of the middle class, and explodes the deficit. Instead, Democrats are working on a government For the People, focused on lowering health care costs and prescription drug prices, increasing Americans’ pay with strong economic growth, and cleaning up corruption.

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