Although the Tax Cuts and Jobs Act of 2017 did precious little to reduce the tax burden of middle-class Americans, it has been great for millionaires. And according to Peter Cary of the Center for Public Integrity, that includes many of the Republican senators and House members who rammed it through Congress.
Discussing the Center’s analysis of the 2017 law in an article for Vox this week, Cary explains: “Cutting tax rates for companies like Apple and hundreds of other stocks they own was one of many ways Republican lawmakers enriched themselves after they passed the tax law…. Democrats also stood to gain from the tax bill, though not one voted for it. All but 12 Republicans voted for the tax bill.”
After the Tax Cuts and Jobs Act was passed, Cary explains, stock shares increased in price. Dividends were raised — and many of the Republicans in Congress who voted for the law just happened to own stock in the companies that paid higher dividends.
“When the price of Apple stock hit a then-record high in October 2018,” Cary observes, “among the shareholders counting their gains were 43 Republicans in Congress, who collectively owned as much as $1.5 million worth of the tech giant’s shares.”
One of the Republicans who has benefited from owning Apple shares is Sen. David Purdue of Georgia.
Cary notes, “Perdue is one of the wealthiest senators, with a net worth of $15.8 million — $14 million of which is in stocks, according to Roll Call. In 2018, with his wife, Perdue owned $100,000 to $250,000 in Apple stock, he reported. The couple sold some of it and received annual dividends and capital gains that year between $15,000 and $50,000.”
Cary goes on to explain that “net corporate dividends reached a new high in 2018 of more than $1.3 trillion, nearly 6% more than the previous year…. Bigger dividends put even more money in the pockets of stockholders.”
Liberal economists like Paul Krugman (a long-time New York Times columnist) and Robert Reich (who served as secretary of labor under President Bill Clinton) have been highly critical of the Tax Cuts and Jobs Act, arguing that it ignored the needs of the American middle class. Cary, similarly, stresses that the “benefits” of the law — which reduced the corporate tax rate in the U.S. from 35% to 21% — “mainly went to the rich, as the wealthiest 10% of Americans own 84% of all stocks.
“The ten richest Republicans in Congress in 2017 who voted for the tax bill held more than $731 million in assets — almost two-thirds of which were in stocks, bonds, mutual funds, and other instruments, according to Roll Call’s semiannual assessment of Congress’ wealth,” Cary reports.
Cary wraps up his article with a quote from Craig Holman of the watchdog group Public Citizen. Holman said of millionaires in Congress, “They are passing tax laws and legislation that disproportionately favors the wealthy class, and that means they personally benefit from this type of legislation. And from what we’ve seen — especially from the Tax Cuts And Jobs Act of 2017 — that tax bill clearly favored the very wealthy over the rest of Americans, and that means it favored Congress over the rest of America.”
Even Fox News shows Trump trailing in 2020 amid market crash and fear over COVID-19
The expanding COVID-19 epidemic and stock market crashes are not the only bad news for President Donald Trump this week.
A new Fox News poll shows Trump trailing six different Democrats in head-to-head matchups.
The poll showed Trump trailing former Vice President Joe Biden, Sen. Bernie Sanders (I-VT), former New York City Mayor Mike Bloomberg, Sen. Elizabeth Warren (D-MA) and former South Bend Mayor Pete Buttigieg.
Trump is in a ‘fight-or-flight state’ over coronavirus: ‘Art of the Deal’ co-author
On Thursday's edition of MSNBC's "The Beat," Trump biographer and "Art of the Deal" co-author Tony Schwartz laid out the president's state of mind over the coronavirus crisis.
"Let's understand Trump," said Schwartz. "Trump is the chief energy officer of this land. So, in other words, his energy has a disproportionate impact on all our energy. And he already raised the anxiety of people over the last four years considerably. He'll exploit fear if he thinks that serves him, or deny fear if he thinks that serves him."
"That's an important point," said host Ari Melber. "You're arguing, as someone who worked with him, that while we just heard about a public interest approach, you're saying you don't see him using public interest?"
‘No time for being patronized,’ say youth climate leaders as UK cops warn parents over Fridays for Future protest
"Young people should not be underestimated—we have a voice and we are strong."
Youth organizers of a Friday climate protest in Bristol, United Kingdom said they have "no time for being patronized" after local police sent a letter to parents warning of inadequate safety measures for the upcoming demonstration, which teenage activist Greta Thunberg and thousands of others are expected to attend.