Trump claimed the 2017 Tax Law would pay for itself, would spur corporations to pay raises of $4,000 to $9,000 a year and wouldn’t benefit the wealthy.

The tax bill does none of the above. 

Initial tax receipts suggest the tax bill will not pay for itself but rather leave tax payers with $1.3 trillion debt over 10 years.

The tax bill makes small tax reductions for most Americans. While most income groups paid less tax in 2018, the benefits flow mostly to the wealthiest 1 percent of tax payers.  By 2027, much of the tax relief on lower incomes disappears with 82.5 percent of tax benefits continuing for those making above $730,000 a year.

Republicans fail to mention that the tax plan helps businesses more than individuals.  After Congress reduced the top corporate tax rate from 35 percent to 21 percent, businesses are flush with cash.  Lawmakers also let companies repatriate amassed foreign earnings at reduced tax rates.

The new tax law is making it even easier for big companies to avoid/reduce their taxes. A new analysis finds that in 2018, 60 of the America’s biggest companies (including Amazon and Netflix) paid no taxes on total profits of $79 billion.

Per Money Magazine, the tax law didn’t provide any incentive for employers to create jobs.  Instead of reinvesting that cash and creating jobs (as touted by Republican law makers), companies are boosting stock prices by buying back their own stock and increasing stock dividends: like Apple with a $45 billion buyback. This bait and switch from jobs to buy backs happens every time congress reduces corporate taxes.  With a so-called growing economy, wages should be climbing. However, real (inflation-adjusted) average hourly wages didn’t grow at all between June 2017 and June 2018.

It’s time to ensure our president and congressional representatives enact laws that actually support average Americans.

Ken Peterson

Buchanan