Second Massive Giveaway to the Wealthy Could Cost Another $800 Billion
Washington, D.C. – A coalition of 132 prominent national organizations have come together to oppose a proposal by President Trump and the GOP-led Congress for a second round of tax cuts that will largely benefit the wealthy, cost an estimated $800 billion and jeopardize funding for Social Security, Medicare, Medicaid, education and more.
Joining Americans for Tax Fairness in signing the letter to Congress are such diverse groups as the AFL-CIO, Center for American Progress, Children’s Defense Fund, Faith in Public Life, MoveOn.org, National Women’s Law Center, Patriotic Millionaires and many more (see complete list HERE).
“The richest Americans do not need another massive tax cut,” the letter states. “They and America’s corporations need to start paying their fair share, so we have the resources needed to protect Social Security, Medicare and Medicaid and to invest in education, infrastructure and many more services working families and communities need to thrive.”
The group writes that the first round of tax cuts, passed as part of the Tax Cuts and Jobs Act, bestows most of its benefits on the wealthy and large corporations and will add $1.9 trillion to the national debt, according to the non-partisan Congressional Budget Office. The letter says that the enormous price tag for the tax cuts is being used as an excuse for conservatives in Congress to make deep cuts to vital public services that tens of thousands of people rely on, including seniors, children, women and people with disabilities.
“Extending or expanding the law’s existing provisions will likewise primarily enrich the already wealthy while further threatening essential services and investments,” the letter says.
On its website, Americans for Tax Fairness presents data showing that the first round of tax cuts has failed to fulfil the promises made by its proponents to raise wages and increase investments. In fact, just 4.3% of workers are getting any one-time bonuses or wage increases as a result of the Trump-GOP tax cuts. Meanwhile, corporations will receive $77 billion in tax cuts – 11 times what they are giving to their workers in pay raises and bonuses. Most of the corporations are using their tax cuts for stock buybacks, which have increased by $483 billion since passage of the tax law.
“America cannot afford the Trump-GOP tax cuts benefiting the rich and corporations, and we sure cannot afford a Round 2 that puts the interests of the wealthy over everyone else,” the letter states. “We urge you to oppose an extension of (the) tax cuts and instead support legislation to ensure that the wealthy and large profitable corporations pay their fair share so that we have the revenue needed to invest in our families and communities to strengthen public education, fix infrastructure, make healthcare more affordable, assist families in need of affordable childcare, housing, nutrition and other basics, and provide a secure retirement with dignity.”
For a copy of the letter and a complete list of the 132 organizations that have signed, go HERE.