Everybody knew the GOP tax scam passed last December was not needed. The economy was doing just fine and didn’t need a stimulus. The government deficits were already too large, and the U.S. needed more revenue, not less revenue from taxes. And certainly the super-rich beneficiaries of the tax cut bill didn’t need any more money. The concentration of wealth among the super-rich has never been greater in this country. The rich were already getting richer, and didn’t need any more help from the government to feather their nests.
Republicans in Congress supporting the ill-advised tax legislation even admitted the bill was not intended to benefit average Americans. They made clear that they were only passing the bill to please the wealthy donors who have historically funded their campaigns.
Some people in Congress, such as Sen. Lindsey Graham (R-SC) said they had to get the tax bill passed into law or “the financial contributions will stop.” Rep. Chris Collins (R-NY) said “who cares” if the tax cuts are unpopular. “My donors are basically saying, ‘Get it done or don’t ever call me again.’”
These kinds of comments show that the U.S. government does not work for the American people but for the billionaires and corporations who buy Members of Congress like chattel at an auction.
A new report from CNN, however, shows that the tax legislation has not succeed in keeping big Republican donors happy.
Several of the wealthiest GOP donors are apparently now withholding funds from the House and Senate campaign committees. Wall Street billionaires Paul Singer, Ken Griffin, Warren Stephens, Cliff Asness, Bruce Kovner, and Daniel Loeb were named by CNN as being very angry at Republicans because the tax law’s tax cuts do not apply to their hedge funds.
“Although some of the donors have not sworn off contributions to individual campaigns or even the Republican National Committee, all have so far withheld contributions to the House and Senate Republican campaign arms — which are key players in the 2018 midterm elections — as a way to send a message over the law.”
“These six donors accounted for more than $50 million to Republican groups during the 2016 election cycle; Singer ranked among the top 10 donors of either party, while Griffin and Stephens ranked in the top 20.”
Republicans could now possibly see big funding shortfalls at a time when their control of Congress is being threatened by a blue wave. Many voters are also angry that the tax cuts favor the rich and will create massive deficits, possibly leading to cutbacks in social programs.
Studies have shown that 83 percent of the bill’s tax benefits will go to the top 1 percent of income earners and 80 percent to foreign investors. Recent polls find just 27 percent of voters think the tax cuts were a good idea. Some vulnerable Republican lawmakers organizing rallies to support the tax bill, like Iowa Rep. Rod Blum, have been greeted with very small crowds.
The tax law is not helping America, and it is also not helping Republicans win elections. The fact that top GOP donors are also unhappy about the bill just proves that it was one of the worst laws ever passed in the history of the United States because it has accomplished nothing but transferring money from the poor and the middle class to the richest Americans — and even foreigners — who already have too high a percentage of our nation’s wealth.
I am a lifelong Democrat with a passion for social justice and progressive issues. I have degrees in writing, economics and law from the University of Iowa.