Trump and Republicans passed a bill that lavishes over $2 trillion in tax cuts on the wealthiest, including the big Wall Street banks, executives who can manipulate their legal status to obtain a lower tax rate, and companies that offshore cash and jobs to dodge their tax bill.
Big Wall Street banks like Wells Fargo and Bank of America were the single largest beneficiaries of the recent tax bill, collectively getting over $250 billion in new tax breaks. In contrast, ordinary Americans earning wages and salaries received limited or temporary benefits, and in many cases will see their taxes increased and their healthcare spike. Meanwhile, Republican leadership has made clear that the ensuing deficit will be closed with cuts to programs like Medicare and Social Security.
Our tax system is rigged in favor of Wall Street and the extraordinarily rich, and the rest of us pay the price. Congress can change this by closing loopholes and restructuring tax policies to stop rewarding Wall Street manipulation. Real tax reform is needed to end advantages for giant CEO pay packages that reward risky, short-sighted and fraudulent activities at the expense of workers, investors and consumers; to make the financial industry pays its fair share and stop Wall Street tax evasion; to curb wasteful and risky speculation, and to incentivize financial companies and players to support — not suck money out of — the real economy.
There are already a few legislative vehicles for restructuring the tax code so that it serves everyday Americans, and not Wall Street donors:
“Trump Tax Cut Hands $32 Billion Windfall to America’s Top Banks,” by Yalman Onaran, Bloomberg, January 16, 2020.
“The Economic Effects of the 2017 Tax Revision: Preliminary Observations,” by Congressional Research Service, May 22, 2019.
“Wall Street Made Bank on Trump in 2017,” by Porter McConnell and Luísa Galvão, Inequality.org, January 31, 2018.
“Bank Heist: Wall Street Banks Get Huge Trump-GOP Tax Cuts, Enriching Shareholders But Sharing Little With Workers“, by Americans for Tax Fairness, June 2018.
“Hidden Rules of Race are Embedded in the New Tax Code”, by Darrick Hamilton and Michael Linden, Roosevelt Institute, May 23, 2018.
“Tax Bill’s Big Bank Beneficiaries Offshoring American Call Center Jobs“, by Communications Workers of America and the Committee for Better Banks, March 2018.
“Wall Street a big winner in new tax package,” by Americans for Financial Reform, December 22, 2017.
“If you tax the rich, they won’t leave: U.S. data contradicts millionaires’ threats,” by Cristobal Young, The Guardian, November 20, 2017.
“The Myth of Millionaire Tax Flight: How Place Still Matters for the Rich,” by Cristobal Young, Stanford University Press, October 2017.
“Billionaires Demand More Tax Breaks!“, by Luísa Galvão, Americans for Financial Reform, September 27, 2017.
“It’s a Myth That Corporate Tax Cuts Mean More Jobs.” by Sarah Anderson, New York Times, August 30, 2017.
“Donald Trump’s New Tax Loophole is Ripping Off His Supporters“, by Take on Wall Street, Other98, August 24, 2017.
“Wall Street Banks and Financiers Must Pay their Fair Share”, by Americans for Financial Reform, Americans for Tax Fairness, Institute for Policy Studies, July 17, 2017.