FOR IMMEDIATE RELEASE

Wednesday, July 15, 2020

CONTACT: press@iowademocrats.org

On Tax Day, Middle-Class Iowans Feel the Consequences of Trump’s Tax Scam

The GOP sold the Trump Tax Scam as a plan to help middle-class Americans, but three Tax Days later, only the wealthiest 1% and large corporations are receiving the benefits 

DES MOINES — On the third Tax Day since President Trump’s tax cut law took effect, it is clearer than ever that the tax scam has left working and middle-class Iowans behind. While the law was sold as a tax cut for the middle-class, the biggest beneficiaries have only been the wealthiest 1% of Americans and large corporations.

This Tax Day comes in the midst of the COVID-19 global pandemic, an unprecedented recession, and record-breaking high unemployment numbers. As working Iowans are falling further behind, Trump is using his tax scam to game the system for his personal and political profit while still refusing to release his tax returns to the American people.

Take a look at the Tax Day 2020 Winners and Losers under President Trump’s tax scam: 

Winners:

• The wealthiest 1%: For the first time in history, billionaires are paying a lower tax rate than the working class. In Iowa, the richest 1% is receiving an outsized share of tax cuts — the most of any other income bracket — and by 2027, 82.8% of Trump’s tax benefits will have gone to the top 1% of Americans.

• Large corporations: In the first year of Trump’s tax cuts, 91 of the largest publicly traded corporations paid zero federal income tax and the corporate tax rate fell to 7%, the lowest it’s been since 1947.

• President Trump himself: Based upon Trump’s 2005 tax returns, he could be saving up to $11 million yearly under his tax scam. However, this number may be even larger — the American taxpayers can’t know exactly how much he’s personally profited since he refuses to release his tax returns.

Losers:

• Working and middle-class Iowans: By the end of the decade, taxes will rise for every Iowan family earning under $75,000 a year. Compared with previous tax laws, 53% of Americans — the majority, including those who need relief the most — will eventually pay more.

Three Tax Days later, Iowans aren’t buying Trump’s broken promises , as evidenced by the recent Des Moines Register poll that showed Vice President Joe Biden neck-and-neck with Trump.

“President Trump and the GOP broke their word to working Iowans to benefit their wealthiest donors and special interest groups when they passed the Tax Scam, and on Tax Day these broken promises are plain to see,” said Iowa Democratic Party Chair Mark Smith. “Iowa Democrats are working to help Iowans facing unemployment and suffering from the COVID-19 pandemic while the GOP is focused on creating even more tax cuts for the wealthy corporations.”