The senators, led by Ted Cruz (R-TX), claimed the move would benefit the economy, despite all the evidence to the contrary.
More than 20 Republican senators are demanding yet another massive tax break for wealthy Americans.
In a letter addressed to Treasury Secretary Steven Mnuchin, the lawmakers begged the administration to tie capital gains to inflation. The senators, led by Ted Cruz (R-TX), claimed the move would benefit the economy, but a 2018 analysis by the Center on Budget and Policy Priorities found it would mostly benefit the wealthy.
Such a policy would cost the government about $100 billion to $200 billion in revenue over ten years, placing it on the backs of American taxpayers. Additionally, 86% of the benefits would flow only to the top 1% of households, according to the analysis.
Apparently the wealthy haven’t cut enough breaks lately under the Trump administration.
That tax scam, passed solely by Republican lawmakers, cost American taxpayers a whopping $1.5 trillion and mostly benefited wealthy corporations.
Due to the high price tag, the administration has been eager to make deep cuts to important safety net programs. The White House has proposed cutting more than 3 million poor Americans off of food stamps to save the government money. The administration has also taken aim at education, hoping to slash billions from the Education Department. In 2018, the administration denied federal workers their 2.1% raise due to "serious economic conditions affecting the general welfare."
Additionally, the tax cuts did not help grow the economy how Republican lawmakers claimed they would. A March report from the White House Council of Economic Advisers (CEA) found that the economy will not sustain even a 3% growth for the foreseeable future.
It seems the GOP hasn't learned its lesson and will do anything to make sure money flows only to the rich and powerful.
Published with permission of The American Independent Foundation.