The Republican Tax Scam Revealed More and More

The Republican tax scam does not significantly grow the economy to pay for itself

Expert analyses continue to show the tax scam will explode our deficits and debt, which will create a drag on our economy over the long run. CBO warns the dramatically worsened fiscal outlook — due in large part to the GOP tax scam — could put the nation at risk for a longer‑than‑necessary recession, should there be an economic downturn.

The tax scam benefits corporations and wealthy shareholders, not workers

Corporate behavior during the first four months of the GOP tax law reveals that their huge tax cut has mostly benefitted their wealthy shareholders and executives through stock buybacks and dividends, not workers.

The massive tax cut to corporations does not trickle down to American workers

As the evidence in our previous report shows, companies’ bonus and wage increase announcements tell us nothing about the GOP tax law’s impact on workers, because these companies would have made business decisions to keep and attract good workers in a competitive labor environment regardless of the tax cut. American workers deserve every bonus and wage increase rewarding their hard work, regardless of how companies are characterizing them. However, the bonus and wage announcements that Republicans are attributing to the tax law pale in comparison to the huge benefits going to their wealthy shareholders.

The huge tax cut to corporations does not boost workers’ pay in a meaningful way

As noted above, American workers have earned every penny they have received in bonuses and wage increases, regardless of how their companies are characterizing them. However, many workers are not seeing increases in their paychecks and the few who are seeing increases are seeing amounts far less than what Republicans have promised in order to sell their tax scam.

  • A CNBC All-America Economic Survey finds that 52 percent of working adults say they have not seen a change in their paychecks due to the tax cuts. Of the 32 percent saying they have seen a bigger paycheck, 40 percent say the extra pay helps “some” or “just a little” and 22 percent say the extra pay “does not help much at all.”

Next Up: Target Benefits American Families Rely On

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House Budget Committee Majority

House Budget Committee Majority

Fighting for budget priorities that reflect the values of families across the country.