Tax Groups Warn 'Billionaires and Big Corporations Sharpening Their Knives'
"Billionaires and big corporations are sharpening their knives in anticipation of huge tax cuts, already lobbying and donating to get the tax plan that gives them the biggest windfall."
Economic justice organizations are bracing for a grueling uphill battle as U.S. President-elect Donald Trump and his Republican allies in Congress lay the groundwork to swiftly enact another massive tax cut for the wealthy and large corporations, a move that would worsen inequality and add trillions of dollars to the nation's deficit.
With Trump soon to be in the White House, a Senate majority secured, and control of the House in sight, Republicans are wasting no time preparing for a legislative push to extend soon-to-expire provisions of their deeply regressive 2017 tax law and further cut taxes for rich Americans and large corporations.
In the months leading up to Tuesday's election, GOP lawmakers have been discussing plans to use the fast-track process known as reconciliation to dodge the Senate's 60-vote filibuster and ram through another round of tax cuts. Republicans are set to hold at least 53 Senate seats in the new Congress and are currently just seven seats short of a majority in the lower chamber.
Grover Norquist, a longtime anti-tax crusader and informal economic adviser to Trump, predicted that Republicans are going to try to push through tax legislation "very early."
"The House and Senate guys have been working on this together forever," Norquist toldThe Washington Post on Thursday.
During his 2024 campaign, Trump pledged to cut the statutory corporate tax rate from 21% to 15%, a change that would deliver close to $50 billion in tax breaks annually to the nation's largest companies. The president-elect also floated a number of additional proposals, including eliminating taxes on tips and Social Security benefits.
David Kass, executive director of the progressive advocacy group Americans for Tax Fairness (ATF), said Friday that "the incoming Congress faces a generational tax fight on the renewal of the disastrous Trump tax provisions that benefit the wealthiest Americans and corporations."
"Make no mistake, billionaires spent record amounts of money this election cycle to buy themselves a tax cut worth trillions—and the vast majority of Americans will pay the price," said Kass. "ATF and its coalition will fight for a fair tax code where the wealthy and corporations pay their fair share. We'll hold elected officials accountable if they attempt to redirect trillions from working families to the wealthy and big corporations."
"President Trump and his extreme agenda are the embodiment of inequality, fueling the division between the ultrawealthy and the rest of us."
An analysis published ahead of the election by the Institute for Taxation and Economic Policy (ITEP) found that Trump's economic proposals would cut taxes for the richest 5% of Americans while raising them for the bottom 95%.
In a blog post on Friday, ITEP executive director Amy Hanauer wrote that a tax package that centers proposals Trump floated on the campaign trail "would be disastrous for families, communities, and the country."
"Billionaires and big corporations are sharpening their knives in anticipation of huge tax cuts, already lobbying and donating to get the tax plan that gives them the biggest windfall," Hanauer added. "Those forces have always had tremendous influence in Washington. Now they have more."
Lobbying related to expiring provisions of the 2017 Trump-GOP tax law surged in the run-up to Tuesday's election, with corporate giants such as FedEx, Starbucks, Pfizer, and Toyota pressuring Congress to prevent parts of the law from lapsing.
In addition to further cutting corporate taxes and extending elements of the 2017 law, Trump is also weighing an attempt to cut capital gains taxes without congressional authorization.
"Toward the end of his first administration, senior White House officials and Treasury staff held extensive discussions about bypassing Congress with a unilateral $100 billion tax cut that would primarily benefit the wealthy," the Postreported Thursday. "Numerous Trump advisers have hoped to take another shot at it in his second term."
Abby Maxman, president and CEO of Oxfam America, pledged after Trump's victory earlier this week that "we will work to stop any extension of President Trump's tax cuts for billionaires and the ultrarich."
"President Trump and his extreme agenda are the embodiment of inequality, fueling the division between the ultrawealthy and the rest of us," said Maxman. "His policies create chaos and only serve billionaires and corporations, not working people."
Patriotic Millionaires chair Morris Pearl sounded a similarly defiant note.
"This round went to the oligarchs," Pearl said of the 2024 election. "But rest assured, Patriotic Millionaires will rise to the fight. We've only just begun."
