How the GOP Scammed Us to Make the Rich Even Richer

Statement

Since the passage of their monstrous tax overhaul in Congress, Republicans nationally and in New Jersey have gone into overdrive claiming that the Trump tax law will be a boon for middle-class Americans. It is vital to set the record straight.

The Trump tax law will devastate our communities by depriving millions of New Jerseyans of the state and local deductions that they have long enjoyed.

In my own congressional district, more than one-third of taxpayers claim the deduction, to an average of $18,668 per household. This money has made a critical difference in sending children to college, affording medical procedures and taking family vacations.

By eliminating this vital channel of relief, Trump Republicans have guaranteed that New Jersey will be one of just six states to be hit with a net tax increase.

The impact of the Republicans' tax scam will be felt, too, in the services Garden Staters enjoy. With the gutting of the reduction, every city and town will face excruciating choices on paring spending on infrastructure, public safety and schools. And any decisions to cut services will inevitably lower property values, placing yet another burden on our communities.

While Republicans -- including my colleague Tom MacArthur, R-3rd Dist., in a recent Star Ledger piece -- have tried to frame the tax law as a "win" for New Jersey that will buoy the state "from the bottom up," they can't put lipstick on this pig.

Three-quarters of the $1.1 trillion in individual cuts go to the wealthiest 5 percent of taxpayers, while by 2027, 86 million families will see their taxes go up.

Conversely, the corporate cuts will be permanently enshrined. And did I mention that the tax scam adds over $2 trillion to our national debt,according to tax analysts at the Wharton School at the University of Pennsylvania?

As we have seen from Trump to Paul Ryan, Mitch McConnell, and other GOP leaders, Republicans will rely on a fog of sloganeering, misrepresentations, or outright lies in order to fool the American people as to the true impact of their schemes. With midterm elections looming, they are increasingly desperate.

For example, MacArthur and Republicans repeatedly highlight anecdotes of companies giving out one-time bonuses to workers as evidence of the Trump law's economic impact. While worker bonuses are a great thing, these bonuses have been widely labeled political stunts by corporations that are attempting to reap positive publicity while doing virtually nothing to raise wages over the long-term.

Take Walmart, America's largest retailer and a company notoriously hostile to organized labor. Last month, to much fanfare, Walmart announced bonuses and expanded benefits for many of its associates. But on the same day, in a much quieter announcement, the company revealed that it would eliminate about 10,000 jobs and close 63 Sam's Club stores.

Even as dozens of big corporations have milked stories of their one-time bonuses, overall just 2 percent of American adults say they've gotten a raise or bonus due to the new tax law. And only 9 percent of Fortune 500 companies have announced any plans to share their wealth, despite reaping hundreds of billions in tax cuts. Economists are in wide agreement that the bulk of the tax law's benefits will go to corporate stock buybacks, lining the pockets of wealthy shareholders and diverting money away from workplace investments or higher employee pay.

It's no wonder Republicans passed the tax scam with minimal debate or analysis. In fact, my Republican colleagues have explained their motivations even more clearly.

In a comment made to my neighbor Rep. Josh Gottheimer, D-5th Dist., moments before the Trump millionaire's tax cut was rammed through, one of our Republican colleagues gleefully announced that the law was the GOP's opportunity to "stick it to the Northeast."Furthermore, according to Republicans like Rep. Chris Collins, R-27th Dist., a prominent Trump ally currently under an ethics investigation, their party's biggest donors were demanding a giant tax cut and would not accept anything less.

Two such donors are Charles and David Koch, whose company could save more than $1 billion in income taxes each year from the Trump tax law. That doesn't include what the plutocrat pair will earn in untaxed offshore profits or what their heirs will now inherit due to the severely scaled back estate tax.

The Koch brothers rank among the ten richest people in the world. Koch Industries is the second largest corporation in America. They are the last people on earth who need tax relief, and yet they are the exact individuals for whom the Republican tax law was tailored.

And in recent weeks Republicans began to receive their own rewards, as FEC filings revealed the Koch brothers cut nearly a million dollars in contributions to Paul Ryan and the National Republican Congressional Committee. For his part, Ryan recently highlighted the $1.50 extra per week that Americans would enjoy from the tax law. Yes, you read that right: a buck fifty.

The Republicans' signature legislative achievement since Trump's inauguration -- their only significant legislative passage -- was done at the behest of their rapacious donors who are eager to raid the Treasury and then slash programs that benefit the rest of us. This corruption that Republican members of Congress helped facilitate threatens to further destabilize our already-strained democratic institutions and the fabric of trust Americans hold in their leaders.

Every day, Republicans allow our infrastructure to crumble while education, housing, and childcare costs skyrocket. And Trump has proposed a budget that would eviscerate programs like Medicare, Medicaid, and food stamps.

By ignoring our country's urgent needs and giving the top 1 percent even more wealth, the new tax law is a big wet kiss to corporate donors and a deliberate slap in the face to New Jersey.

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