Issue Report ● GOP Tax Law
For Immediate Release: 
April 17, 2018
Contact Info: 
Mariel Saez 202-225-3130
On Tax Day, here is a look at how the GOP tax law is leaving America’s workers behind while the wealthiest Americans and corporations receive the vast majority of benefits. Instead of raising wages and hiring American workers, corporations are spending their windfall on record-breaking dividends and stock buybacks, enriching investors.

The GOP tax scam continues to become less popular with Americans who know the law stacks the deck against working families. A NBC/WSJ poll released yesterday shows:
  • Only 27% of Americans believe it’s a good idea, while 36% of Americans call it a bad idea.
  • Fifty-three percent foresee a negative impact from higher deficits and disproportionate benefits for the wealthy and big corporations.
Working Americans aren’t seeing much benefit from the GOP tax law. A recent CNBC Poll found that:
  • More than half of working Americans – 52% – say they’ve seen no change in their withholding taxes.
  • Only 32% employed adults report having more take home pay. Of the only 32%  of working adults who noticed something, over 60% say it helps some, just a little, or not at all.
Analysis from the Tax Policy Center shows that the richest 1% of Americans are seeing tens of thousands of dollars in tax breaks while low-income Americans receive much less:
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  • “When factoring in all the law's provisions, including the corporate rate cut, TPC said the richest Americans get a tax break of $51,140, while the poorest Americans receive one of $60.” [Washington Post, 3/30/18]
In addition, recent analyses and surveys have found that corporations are sharing benefits with shareholders – not hiring workers, increasing wages, or giving bonuses:
  • A Bank of America Merrill Lynch analysis found that fewer than 45 of the 500 S&P 500 companies have paid out cash bonuses to their workers. [USA Today, 4/13/18]
  • A recent survey of businesses executives found that four out of five employers don’t expect to hire more American workers or pay bonuses, and fewer said they would raise wages or increase benefits. [Tax Policy Forecast Survey from Miller & Chevalier Chartered and the National Foreign Trade Council, 4/16/18]
  • Washington Post’s Wonkblog analysis of the March jobs report shows the GOP tax law is not having an impact on American worker’s wages.
    • “The December tax cuts were sld on the promise that they’d boost an already-strong economy, driving wages up and increasing job growth…it’s nt clear that there’s been any significant boost post-tax cuts (January to March) than in the previous three-month periodsThe tax cuts, thugh, were supposed to be ‘rocket fuel’ for the economy, giving businesses a big tax cut that would then result in increased wages for their employees.” [4/6/18]
  • J.P. Morgan estimates that U.S. companies could buy back as much as $800 billion of their own stock this year, up from $527 billion last year. [USA Today, 4/13/18]
Not only are workers not seeing the benefits, but working families and future generations are getting stuck with the bill. The latest report from the non-partisan Congressional Budget Office shows that the tax law will add $1.8 trillion to the deficit over the next decade. Following this report, Senator Corker slammed the bill and Republicans’ fiscal hypocrisy:
Senator Bob Corker (R-TN): “If it ends up costing what has been laid out here, it could well be one of the worst votes I’ve made… This Congress and this administration likely will go down as one of the most fiscally irresponsible administrations and congresses that we’ve had.” [The Hill, 4/11/18]

Just months after the GOP tax law was signed into law, its impact is clear: a windfall for the wealthy and large corporations that is adding trillions to the deficit and leaving the middle class behind.

Click here to read the PDF. 

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