by Patriotic Millionaires | 3.27.18
What’s a payoff? When wealthy donors spend millions to elect members of Congress, they expect a payoff in return. Republicans in Congress would have us believe tax cuts for the rich will help us all, but we already know trickle-down economics is a failure. That claim is just smokescreen for what’s really going on: An excuse to pay off wealthy donors. It’s not a philosophy, it’s a payoff.
Who benefits? It’s no secret that the ultra-wealthy and big corporations are the ones benefitting from the tax plan proposed in Congress. And it should be no surprise that wealthy individuals and big corporations are the sources of most campaign funding for members of Congress. This is the kind of systemic corruption that prevents our democracy from functioning the way it should - so all of us have a voice, not just wealthy special interests.
Can you give me an example? (how about three…) Wall Street interests spent over $2 billion to influence federal elections in the 2015-2016 election cycle, and that’s before dark money spending is even factored in. So, it’s no surprise that despite Paul Ryan’s claims that Republicans are closing loopholes, the carried interest loophole that benefits wealthy Wall Street investment managers allowing income to be reported at a lower rate, is untouched in the GOP plan.
The tax plan is also a tremendous giveaway to big corporations. Republicans are calling for a 15% decrease in the rate from the current 35% tax to 20%. Of course, it’s no surprise that corporate executives have spent millions influencing federal elections. For example, the wealthy industrialist Koch brothers have already spent more than $10 million to influence the legislative outcome of the tax fight, as much as $2.5 million on lobbying to shape the text of the bill, and plan to spend as much as $400 million to influence elections in 2018.
Finally, spending by wealthy individuals dominates election spending, and the GOP tax plan rewards these individuals handsomely. Just a small number of wealthy Americans (0.53%) gave nearly 70% of the money spent to elect Senators and Representatives in 2016, and just 158 wealthy families provided nearly half the early money for the 2015-2016 presidential campaigns. So, it’s no surprise that according to the experts at the Institute for Taxation and Economic Policy & the Center for Tax Justice, wealthy individuals stand to benefit enormously from the plan proposed in Congress. Two-thirds of the entire value of the tax cuts would flow to taxpayers in the top 1 percent, showering an average of $90,610 on these households in 2018 alone, while elimination of the Estate Tax would benefit only the very wealthiest Americans, affecting only individuals with assets worth over $5.49 million and married couples with assets over $10.98 million.
Take action in your own town to pressure your Senators and Representatives and build the movement to stop the payoffs. Click here to rally with Cleanup Carl, America’s only 12ft superhero for democracy!
Written by Patriotic Millionaires
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This process has been anything but regular senate order, and most people, including elected reps, do not know the detailed contents of this bill. All indications point to it being a further concentration of wealth to the top 1%, and it adding massive amounts to our debt. I think most voters want a bipartisan tax bill that simplifies the tax code by closing loopholes designed for the donor class.