GOP tax plan does nothing to boost the wages of working people

Josh Bivens Economic Policy Institute

EPI is dedicated to advancing policies that raise workers’ wages. And we’re happy to welcome Republicans’ newfound recognition that American workers need a raise. But their solution is bunk.

Donald Trump and Republican leaders will tell us that their tax plan will boost wages for American workers. But real-world evidence suggests otherwise.

For years, corporate profits have soared, yet business investment has been extraordinarily slow. The Republican plans aim to boost profits even more and hope that investment will follow. But evidence from past tax cuts in U.S. history, as well as evidence from comparisons of tax changes across countries and across individual U.S. states all argue strongly that this hope will be disappointed. 

Cutting corporations’ taxes is not a recipe for increasing workers’ wages. It’s a recipe for exacerbating income and wealth inequality.

The Senate is expected to vote on their tax plan this week and your senators need to hear from you today.

Here’s a suggested call script:

Call: 888-516-5820

My name is _______. I live in TOWN, STATE and I’m a constituent of the Senator's.

I want Senator [NAME] to OPPOSE the Senate tax plan that delivers huge tax cuts to America’s wealthiest families and corporations. Instead of tax breaks for hedge funds and private equity firms―that just increase income and wealth inequality―we need a tax plan that invests in critical programs for working families.

Republicans know that they need to offer the American people something they can claim is a wage-boosting policy. But tax cuts for America’s wealthiest families and corporations is not that policy.

Call your senators today and urge them to reject a tax plan that does nothing to boost the wages of working people.


From the EPI

Posted In: Allied Approaches

Union Matters

An Invitation to Sunny Miami. What Could Be Bad?

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Sam Pizzigati Editor, Too Much online magazine

If a billionaire “invites” you somewhere, you’d better go. Or be prepared to suffer the consequences. This past May, hedge fund kingpin Carl Icahn announced in a letter to his New York-based staff of about 50 that he would be moving his business operations to Florida. But the 83-year-old Icahn assured his staffers they had no reason to worry: “My employees have always been very important to the company, so I’d like to invite you all to join me in Miami.” Those who go south, his letter added, would get a $50,000 relocation benefit “once you have established your permanent residence in Florida.” Those who stay put, the letter continued, can file for state unemployment benefits, a $450 weekly maximum that “you can receive for a total of 26 weeks.” What about severance from Icahn Enterprises? The New York Post reported last week that the two dozen employees who have chosen not to uproot their families and follow Icahn to Florida “will be let go without any severance” when the billionaire shutters his New York offices this coming March. Bloomberg currently puts Carl Icahn’s net worth at $20.5 billion.


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