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Sen. Ted Cruz (R-Texas) listens during a Senate Foreign Relations Committee hearing on June 19, 2019 in Washington, D.C. (Photo: Stefani Reynolds/Getty Images)
Led by Ted Cruz, GOP Senators Call on Trump to Bypass Congress to Give Rich Americans Another Tax Cut
"This is the GOP long con in a nutshell. Trump blazes away with raw and hideous racism. Meanwhile, he and his party look for ways to ship yachtloads of cash to the super wealthy."
Jul 30, 2019
A group of over 20 Republican senators on Monday urged President Donald Trump's Treasury Department to bypass Congress to unilaterally hand the wealthiest Americans another massive tax cut.
In a letter (pdf) led by Sen. Ted Cruz (R-Texas), the GOP senators called on Treasury Secretary Steven Mnuchin to index capital gains to inflation, a move that would primarily reward rich investors.
According to Bloomberg, the Trump White House is "developing a plan" to cut taxes for the rich by indexing capital gains to inflation.
"Indexing capital gains would slash tax bills for investors when selling assets such as stock or real estate by adjusting the original purchase price so no tax is paid on appreciation tied to inflation," Bloomberg reported last month.
The Republican senators called on Mnuchin to use his "authority to eliminate inflationary gains from the Department of the Treasury's calculation of capital gains tax liability."
Critics have questioned whether the White House has the authority to take such an action. As the New York Times reported last July--when the Trump administration first considered going around Congress to index capital gains to inflation--former President George H.W. Bush's Treasury Department determined the move "would be illegal."
Chye-Ching Huang, director of federal fiscal policy at the Center on Budget and Policy Priorities, said Monday that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
The GOP push for more tax cuts for the rich comes as the Trump administration is working to take food stamps from three million low-income Americans, Seth Hanlon, senior fellow at the Center for American Progress, noted on Twitter.
The Republicans sent their letter as mounting data shows Trump's $1.5 trillion tax cut legislation, which took effect last year, has done virtually nothing for workers while further enriching wealthy Americans and large corporations.
Earlier this month, a group of Democratic lawmakers led by Sen. Sherrod Brown (D-Ohio) sent their own letter (pdf) pressing Mnuchin to "reject reported plans to use questionable authority to--yet again--lavish tax cuts upon our country's wealthiest, while middle class families and working people continue to see costs rise and wages stagnate."
The letter was signed by Sens. Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), and a dozen other senators.
"We remain concerned this administration's relentless preoccupation with cutting taxes for our country's wealthiest taxpayers while leaving behind middle class families and working people," wrote the senators, "even to the extent that it would consider exceeding its legal authority to do so."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
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A group of over 20 Republican senators on Monday urged President Donald Trump's Treasury Department to bypass Congress to unilaterally hand the wealthiest Americans another massive tax cut.
In a letter (pdf) led by Sen. Ted Cruz (R-Texas), the GOP senators called on Treasury Secretary Steven Mnuchin to index capital gains to inflation, a move that would primarily reward rich investors.
According to Bloomberg, the Trump White House is "developing a plan" to cut taxes for the rich by indexing capital gains to inflation.
"Indexing capital gains would slash tax bills for investors when selling assets such as stock or real estate by adjusting the original purchase price so no tax is paid on appreciation tied to inflation," Bloomberg reported last month.
The Republican senators called on Mnuchin to use his "authority to eliminate inflationary gains from the Department of the Treasury's calculation of capital gains tax liability."
Critics have questioned whether the White House has the authority to take such an action. As the New York Times reported last July--when the Trump administration first considered going around Congress to index capital gains to inflation--former President George H.W. Bush's Treasury Department determined the move "would be illegal."
Chye-Ching Huang, director of federal fiscal policy at the Center on Budget and Policy Priorities, said Monday that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
The GOP push for more tax cuts for the rich comes as the Trump administration is working to take food stamps from three million low-income Americans, Seth Hanlon, senior fellow at the Center for American Progress, noted on Twitter.
The Republicans sent their letter as mounting data shows Trump's $1.5 trillion tax cut legislation, which took effect last year, has done virtually nothing for workers while further enriching wealthy Americans and large corporations.
Earlier this month, a group of Democratic lawmakers led by Sen. Sherrod Brown (D-Ohio) sent their own letter (pdf) pressing Mnuchin to "reject reported plans to use questionable authority to--yet again--lavish tax cuts upon our country's wealthiest, while middle class families and working people continue to see costs rise and wages stagnate."
The letter was signed by Sens. Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), and a dozen other senators.
"We remain concerned this administration's relentless preoccupation with cutting taxes for our country's wealthiest taxpayers while leaving behind middle class families and working people," wrote the senators, "even to the extent that it would consider exceeding its legal authority to do so."
A group of over 20 Republican senators on Monday urged President Donald Trump's Treasury Department to bypass Congress to unilaterally hand the wealthiest Americans another massive tax cut.
In a letter (pdf) led by Sen. Ted Cruz (R-Texas), the GOP senators called on Treasury Secretary Steven Mnuchin to index capital gains to inflation, a move that would primarily reward rich investors.
According to Bloomberg, the Trump White House is "developing a plan" to cut taxes for the rich by indexing capital gains to inflation.
"Indexing capital gains would slash tax bills for investors when selling assets such as stock or real estate by adjusting the original purchase price so no tax is paid on appreciation tied to inflation," Bloomberg reported last month.
The Republican senators called on Mnuchin to use his "authority to eliminate inflationary gains from the Department of the Treasury's calculation of capital gains tax liability."
Critics have questioned whether the White House has the authority to take such an action. As the New York Times reported last July--when the Trump administration first considered going around Congress to index capital gains to inflation--former President George H.W. Bush's Treasury Department determined the move "would be illegal."
Chye-Ching Huang, director of federal fiscal policy at the Center on Budget and Policy Priorities, said Monday that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
The GOP push for more tax cuts for the rich comes as the Trump administration is working to take food stamps from three million low-income Americans, Seth Hanlon, senior fellow at the Center for American Progress, noted on Twitter.
The Republicans sent their letter as mounting data shows Trump's $1.5 trillion tax cut legislation, which took effect last year, has done virtually nothing for workers while further enriching wealthy Americans and large corporations.
Earlier this month, a group of Democratic lawmakers led by Sen. Sherrod Brown (D-Ohio) sent their own letter (pdf) pressing Mnuchin to "reject reported plans to use questionable authority to--yet again--lavish tax cuts upon our country's wealthiest, while middle class families and working people continue to see costs rise and wages stagnate."
The letter was signed by Sens. Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), and a dozen other senators.
"We remain concerned this administration's relentless preoccupation with cutting taxes for our country's wealthiest taxpayers while leaving behind middle class families and working people," wrote the senators, "even to the extent that it would consider exceeding its legal authority to do so."
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