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The only thing more corrupt than the substance was the way it was enacted. The Trump era has been defined by corruption: The law showered massive new tax cuts on the wealthy and corporations at a time of rising inequality, record after-tax corporate profits, unmet domestic needs, and rising deficits.
Given the basic mismatch between what the American people wanted on taxes and what Republicans were delivering, congressional leaders made two strategic decisions to force their bill through Congress: They fundamentally misrepresented its contents, and they sought to move it through Congress as fast as possible with minimal public scrutiny—creating a process accessible only to well-funded lobbies.
The result was a massive windfall for corporate America and the wealthy, one that preserved some of the most egregious tax loopholes while carving out new ones, at the long-term expense of working Americans.
Large tax cuts for corporations and wealthy Americans are extremely unpopular. According to a New writing act scoring jobs poll taken in Aprilthe thing that troubled people most about the federal tax system was not the amount they paid in taxes, nor the complexity of the system.
By huge margins, the top complaints were that some corporations and wealthy people do not pay their fair share. Last year, Gallup found that 63 percent of Americans believed that upper-income Americans pay too little in taxes, and 67 percent believed that corporations pay too little. Last fall, as the tax push began to heat up, more than twice as many Americans wanted to raise tax rates on large businesses and corporations as Americans who wanted to lower them.
Even most Republicans wanted to either raise corporate tax rates or keep them where they were. These preferences are not terribly surprising at a time when both after-tax corporate profits and inequality are at record highs.
Yet the new administration and the congressional majority not only put cutting corporate taxes at the center of their agenda—they viewed it as an absolute must-do priority, one where failure posed an existential threat.
But some tax bill proponents candidly admitted that what they were really afraid of was the wrath of their campaign donors. No meetings, calls, contributions until we see progress. By83 percent of the benefits flow to the top 1 percent, while most households actually see their taxes go up. Only a political system deeply corrupted by corporate political spending could have produced such a result.
The lies went far beyond puffery or shading of the facts; proponents lied about what the bill was fundamentally about. But it turned out the analysis never existed. Mnuchin made it all up. Meanwhile, he removed from the Treasury website a study by career economists that had concluded that shareholders, not workers, are the main beneficiaries of corporate tax cuts.
The need to shield the bill from public scrutiny, given its contents, also led to a compressed, secretive process. In this respect, the tax reform contrasted sharply with the tax reform.
The act was enacted through a laborious, bipartisan process over years; it eliminated numerous special-interest loopholes and tax shelters over the fierce objections of their well-heeled beneficiaries; and, by ending special tax preferences, resulted in corporations paying more in taxes, allowing for broad-based individual tax cuts without increasing deficits.
Ina bipartisan group of legislators froze out the special-interest lobbyists. Init was the public—and Democratic legislators—who were shut out of the process. After releasing the first version of the tax bill on November 2,congressional Republicans jammed the bill through in a day sprint—an unheard-of pace for a bill of this magnitude and complexity.
The House and Senate held a total of zero public hearings on the legislation.
They deliberately compressed the legislative schedule to avoid having to face constituents at town halls. On the day that the Senate considered the bill, for example, K Street lobbyists were informed of last-minute changes well before Democratic senators.
Those changes were unveiled only hours before the full Senate voted on a Friday evening, giving senators virtually no chance to read them or comprehend their effects—let alone hear from outside tax experts who would find myriad glitches and loopholes in the bill unintended or not.
Some amendments were added to the legislation in illegible handwriting. Senate Democrats sought to have the Senate adjourn for the weekend so that Senators could review the legislation, but Republicans voted in lockstep to deny them that chance.
These included a special tax break for oil and gas investment partnerships, added to the bill at the last minute by Cornyn, which not only rewarded the concerns that lobbied heavily for favorable treatment, but enriched more than a dozen members of Congress with personal investments in those types of partnerships.
The cruise-ship industry protected a coveted loophole that allows major cruise lines to pay virtually no U. The politically powerful auto-dealer industry also secured a special exemption from restrictions on interest deductions, thanks to an intervention from Kentucky Senator Rand Paul.Apply online.
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