Little-Noticed Hearing Lays Bare GOP Push for 'Massive New Giveaway to the Ultra-Wealthy'
"American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
Republicans on the House's chief tax-writing committee made clear during a hearing Tuesday that their top priority is making permanent the massive giveaway to the rich that Donald Trump and the GOP pushed through in 2017.
Rep. Jason Smith (R-Mo.), chairman of the House Ways and Means Committee, said during his opening remarks at Tuesday's hearing that "we must make the Trump tax cuts permanent as soon as possible."
While most of the corporate tax breaks in the 2017 law were made permanent from the start, provisions impacting individuals—including the cut to the top marginal tax rate—are set to expire at the end of this year without congressional action. Trump and Republicans have also called for a further reduction of the statutory corporate tax rate.
"As of today, we have only 142 legislative days before taxes will go up for every single American if Congress fails to act," Smith declared Tuesday.
Smith characterized the 2017 tax cuts as a boon for ordinary Americans, but the law's benefits were heavily skewed to the wealthiest.
The same would be true of an extension of the individual tax cuts, which is expected to be part of a sprawling party-line reconciliation bill. The Institute on Taxation and Economic Policy noted in a recent analysis that "Trump's plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans."
"No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Rep. Richard Neal (D-Mass.), the top Democrat on the committee, said at Tuesday's hearing that "when Republicans inevitably tell you that the GOP tax scam gave everyone in America a tax break, remember this one contextualized fact: Extending the law gives people making over $1 million a year a $78,717 average tax cut—288 times higher than the $273 those earning under $50,000 would receive."
"Those millionaires won't feel the effects of cuts to Medicare or Medicaid, or higher premium costs, but America's working families sure will," Neal added, referring to the GOP's plan to slash key aid programs to help offset the enormous cost of extending the 2017 tax breaks.
.@RepRichardNeal is right. Congressional Republicans are standing up for the strongest and wealthiest, all at OUR expense. We need relief from the 2017 Trump tax code, not more of it. pic.twitter.com/8gd6KvfFnb
— Accountable.US (@accountable_us) January 14, 2025
Tuesday's committee hearing was overshadowed by the closely watched Senate questioning of Trump's nominee to lead the Pentagon, but it confirmed that Republicans intend to waste no time delivering another round of tax cuts to rich Americans who saw their wealth explode under the 2017 law.
"Last time Trump and the GOP held a trifecta, they moved fast to create new tax breaks rewarding wealthy corporations for moving jobs overseas and harming hard-working families across the country," David Kass, executive director of the progressive advocacy group Americans for Tax Fairness, said in a statement Tuesday. "Now, they're working to pass new tax breaks that will allow these same powerful corporations to evade paying their fair share and eliminate American jobs."
"The disastrous effects of the Trump tax scam are not theoretical—they're reality," Kass added. "It didn't raise wages for everyday people or protect our jobs and it certainly didn't pay for itself. Instead, it doubled billionaire wealth and added over $1.5 trillion to the deficit. No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Trump and the GOP's aggressive push for a new round of tax cuts received a boost from the deep-pocketed Koch network, which is pumping tens of millions of dollars into a nationwide campaign to build support for a proposal that would predominately reward a small sliver of the U.S. population.
"If asked to choose between healthcare and food for low-income kids or tax cuts for giant corporations, Chairman Jason Smith and the Republicans on the Ways and Means Committee are proving that ten times out of ten, they'll choose the corporate giants," said Tony Carrk, executive director of the watchdog group Accountable.US. "American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
