President Donald Trump’s “America First” economic agenda has created a new era of prosperity for the rich and powerful in America.
But Trump has failed to deliver on his promise to lower taxes on the wealthy, and the GOP’s economic agenda hasn’t made it to the Oval Office.
In fact, the Republican Party’s economic policies are so out of step with the world that the Congressional Budget Office (CBO) has been warning of the potential for a massive recession in 2019 and 2020.
Here are seven ways that the Trump-backed economic policies aren’t working.
Tax cuts are unaffordable for most Americans.
According to the Tax Policy Center, tax cuts for the top 1 percent of Americans would be equivalent to a $1.2 trillion reduction in government revenue over 10 years.
That’s more than the entire annual deficit that the U.S. Government has accumulated since the Great Depression.
A full 60 percent of tax cuts that benefit the wealthiest Americans would go to the top 0.1 percent.
This is not what you would expect from a president who has promised to lower the taxes of the rich.
A new version of the American Opportunity Tax Credit isn’t going to get the job done.
While Republicans are counting on the American Jobs Act (AHCA), a bill that would extend the tax credit to companies with 100 percent of their profits coming from the U,D.C. market, the AHCA doesn’t have enough votes in the House to pass.
In addition, AHCA would give companies a $500,000 deduction for bringing jobs back to the U.,D.S., while the current version only provides a $2,500 tax credit for bringing workers back.
The House Ways and Means Committee is set to take up the AHC this week.
There is no credible plan to address the growing crisis in America’s schools.
While the Trump administration has been promising to “drain the swamp” in Washington, the current Congress is spending an inordinate amount of taxpayer money to promote the failed policies of the last eight years.
In 2017, for example, the U:D.O. paid $2.9 billion to lobby the federal government.
This year, the school funding crisis was exacerbated by the Trump Administration’s budget cuts, which slashed $1 billion from the FY2018 education spending plan.
This has not only been a huge hit to our schools, but also to our state and local governments.
A recent report by the Congressional Research Service found that federal funding for schools has grown at the slowest pace since 1993, with more than 20 percent of states and more than 60 percent in the union states.
There isn’t enough funding to rebuild America’s crumbling infrastructure.
According the Federal Reserve, the country’s crumbling roads and bridges, airports, bridges, water and sewage systems, and telecommunications infrastructure are among the nation’s most critical infrastructure assets.
In recent years, we have seen the deterioration of the nation at large, and it is becoming increasingly evident that we will continue to face an unprecedented economic and financial crisis if the Trump agenda isn’t brought to bear.
Trump’s tax plan doesn’t add up.
The U.D.P.T. is a popular tax credit program that provides relief for individuals and businesses that are eligible for it.
While a substantial amount of the tax break is available to the wealthiest people, the majority of tax credits are available to lower-income families.
The top 1% of Americans pay only 10 percent of all U. S. federal taxes.
For example, in 2019, the top one-fifth of earners received a tax credit of $3,600.
The bottom 40 percent of taxpayers paid a tax rate of 35 percent, according to the Congressional Joint Committee on Taxation (JCT).
Taxpayers with higher incomes paid even higher rates.
As of December 2019, about three-fourths of taxpayers with incomes of $200,000 or more received an exemption, while only a third of taxpayers earning less than $25,000 paid a credit.
Taxpayers earning less, such as low-income seniors, parents and students, were not included in this calculation.
There’s a lot of confusion about what is and isn’t included in the AH.
AHCA includes several provisions that, while important for the American economy, aren’t part of a tax plan.
First, the legislation includes an alternative minimum tax that will disproportionately hurt working families, while the Tax Cuts and Jobs Act would provide tax relief to those who are “high net worth,” including the Koch brothers and other billionaires.
Second, AH CA does not include any new spending or revenues to address America’s growing debt, and third, while many Republican lawmakers have promised to raise taxes on businesses, many of them are currently struggling to raise revenues, including from their individual tax returns.
A $1 trillion tax cut for the wealthy doesn’t mean we have a free market.
While Trump’s economic advisers have