In an op-ed published in Newsweek this Thursday, economist Robert Reich says that while Trump helps big corporations get huge tax cuts, he's also trying to expand his working class base -- which is a "tricky maneuver," according to Reich.
"Armed with deductions and loopholes, America's largest companies paid an average federal tax rate of only 11.3 percent on their profits last year, roughly half the official rate under the new tax law—the lowest effective corporate tax rate in more than 80 years," Reich writes. "Yet almost nothing has trickled down to ordinary workers. Corporations have used most of their tax savings to buy back their shares, giving the stock market a sugar high. The typical American household remains poorer today than it was before the financial crisis began in 2007."
On top of his tax cuts ballooning the deficit, which in turn take away from public services, Trump announced a $4.5 billion cut in food stamp benefits, affecting an estimated 10,000 families. Social Security disability benefits are on the chopping block too, and workers provided up to 35 percent of federal tax revenue in 2018 while corporations provided only 9 percent. According to Reich, Trump has been covering up "this massive redistribution from the working class to the corporate elite" by pushing his usual economic nationalism, but in 2020 "it will be difficult this time around because Trump's economic nationalism has hurt American workers, particularly in states that were critical to Trump's 2016 win."
"The consequences of Trump's and the Republicans' excessive corporate giveaways and their failure to improve the lives of ordinary working Americans are becoming clearer by the day."
Read his full op-ed over at Newsweek.