Key Takeaways:
– Fears escalate as President-elect Donald Trump and his Republican partners are poised to pass another large tax cut for wealthy individuals and corporations that would add trillions to the U.S deficit.
– Corporation tax could drop from 21% to 15% under Trump’s proposed reforms.
– Economic justice groups ready to combat policies that boost inequality and favor the rich.
– Analysts argue that Trump’s policies favor the top 5% of Americans and burden the bottom 95%.
Transitioning to Power with Tax Plans Already in Progress
President-elect Donald Trump appears to be in a hurry to pass another substantial tax cut for the rich, and big corporations as part of his economic agenda. The move has economists and justice organizations worried as it could deepen inequality and push the nation’s deficit into trillions. With control of key seats of government almost secured, the Republicans have dug their heels in, preparing for a legislative onslaught designed to extend and enhance provisions of their controversial 2017 tax law.
An Uphill Battle for Economic Justice Organizations
Tax fact-fighters are steeling themselves for what promises to be a merciless uphill struggle against economic inequality. They argue that the planned tax cuts disproportionately benefit the wealthy, big companies, and lead to a one-sided economy. In the build-up to the recent elections, Republican lawmakers broached plans to speedily enact the beneficial tax revisions using the reconciliation process, a method to sidestep the Senate’s 60-vote filibuster obstacle.
Predicted Early Tax Legislation Push
Equipped with at least 53 Senate seats in the new Congress and edging closer to a House majority, Republicans are expected to push for tax legislation swiftly. Informal advisor to Trump, Grover Norquist, anticipates a speedy rally to push through tax reform laws. While the nation braces itself for Trump’s second term, there are fears that large corporations and the wealthy could see significant tax reductions.
Addressing the Fear of Economic Inequality
Potential changes to the tax structure include slashing the statutory corporate tax rate from 21% to 15%, a move that would save the largest companies close to $50 billion in yearly tax bills. These pledged tax-cuts have spawned resistance among groups such as Americans for Tax Fairness (ATF). ATF Executive Director, David Kass, warned of an imminent generational tax war and promised to hold officials accountable should they redirect funds from working families to big corporations and the wealthy.
Research suggests that Trump’s economic reforms would cut taxes for the most affluent 5% of Americans, while increasing them for the remaining 95%. Amy Hanauer, executive director at the Institute for Taxation and Economic Policy (ITEP), cautioned that a tax package that rotates around Trump’s proposals would have disastrous consequences for American communities, families, and the nation overall.
Corporate Influence Looms Large
As the provisions of the 2017 Trump-G.O.P tax law near expiration, lobbying from corporate heavyweights like FedEx, Starbucks, Pfizer, and Toyota has surged, pressuring Congress to prevent lapses in the law. Trump has also hinted at attempts to trim capital gains taxes without congressional authorization, fueling worries about the influence of corporations on tax reform.
Resistance Against Tax Cuts for the Wealthy
Prominent figures in economic justice, like Oxfam America CEO, Abby Maxman, have pledged to fight against the extension of Trump’s tax cuts for billionaires and the ultra-rich. Similarly, Patriotic Millionaires Chair, Morris Pearl, voiced defiance vowing to continue battling economic inequality despite the election results.
The fight for a fair tax system seems set to intensify in the coming months. The outcome remains to be seen. Until then, the nation waits with bated breath over the potential repercussions of Trump’s controversial tax reforms.