The Trump Budget: The Other Shoe Drops
When Congress passed a nearly $2 trillion tax cut for corporations and the wealthy in 2017, we warned that the obscene cost of this tax cut bill would be used as a pretext to cut programs that benefit working people.
AFL-CIO President Richard Trumka (UMWA) said at the time that the 2017 tax bill was:
Nothing but a con game, and working people are the ones they’re trying to con. Here we go again. First comes the promise that tax giveaways for the wealthy and big corporations will trickle down to the rest of us. Then comes the promise that tax cuts will pay for themselves. Then comes the promise that they want to stop offshoring. And finally, we find out that none of these things is true, and the people responsible for wasting trillions of dollars on tax giveaways to the rich tell us we have no choice but to cut Medicaid, Medicare, Social Security, education and infrastructure. There always seems to be plenty of money for millionaires and big corporations but never enough money to do anything for working people.
Now those predictions are coming true, as President Trump has released his new budget plan for the coming year.
The president proposes to cut $2 trillion from safety net programs, which is about the same amount as the cost of the 2017 tax bill. His budget plan would cut $1 trillion from Medicaid and subsidies for the Affordable Care Act. The Labor Department gets whacked by $1.3 billion. Trade Adjustment Assistance for people who lose their jobs to imports is slashed by nearly $400 million, and a program to help U.S. manufacturing companies create jobs is eliminated. The budget plan also eliminates subsidized student loans and the public service student loan forgiveness program.
While supporters of the 2017 tax bill promised it would benefit working people, almost all of its benefits have gone to corporations and the wealthy, and very little has trickled down to working people. Paychecks are still flat, and too many working people still have to work more than one job just to make ends meet. Wages grew by only 0% in September, -0.1% in October, -0.1% in November and -0.1% in December, when adjusted for inflation.
To make things worse, the president’s budget proposes another tax cut that goes disproportionately to the wealthy—extending the tax cuts from the 2017 tax bill for another 10 years at a cost of $1.4 trillion over the next decade. Two-thirds of these tax cuts would go to the richest 20% of all taxpayers. Here we go again.
They keep running the same play because it keeps working. Since 2001, the wealthiest 1% of all taxpayers have gotten $2 trillion in tax cuts, and federal tax revenues have been reduced by $5.1 trillion. This is money that should have been used to make life better for working people—for example, by rebuilding our crumbling infrastructure, funding quality public education for every child and guaranteeing retirement security for our seniors—rather than building up the fortunes of the 1%.
Tue, 02/11/2020 – 11:48