Today, at a full Committee hearing on the effects of H.R. 1, the Republican tax scam legislation, Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, gave the following statement:
Thank you, Mr. Chairman.
Since we are taking the time today to discuss the effects of H.R. 1, the Republican tax scam, I’d like to make it very clear what is really in this law.
The tax scam contains massive giveaways to the nation’s largest banks. An Americans for Tax Fairness analysis finds that as a result of the lowering of the corporate tax rate, the nation’s six largest banks will collectively save an estimated $14 billion in 2018 alone. Another report predicts that Wells Fargo will gain the most from H.R. 1 of any bank in the country.
Banks are already posting record profits. But that isn’t enough for my colleagues on the other side of the aisle. No, instead they pushed through this legislation that is lining the pockets of megabanks with even more money.
The tax scam also provides huge benefits to hedge funds and other Wall Street firms through a 20 percent deduction for pass-through businesses. According to Americans for Financial Reform, 70 percent of pass-through businesses are in the financial sector.
So all Americans should understand that this law has been very intentionally engineered by my colleagues on the other side of the aisle to benefit huge corporations on Wall Street and millionaires and billionaires, at the expense of hardworking Americans and future generations.
Rather than using this windfall to increase wages or hire more workers, corporations are overwhelmingly using the money for stock buybacks. According to Americans for Tax Fairness, corporations have announced over $457 billion in planned stock buybacks since the GOP passed this tax scam.
Let’s also be clear that this giveaway to wealthy individuals, Wall Street banks and big corporations explodes deficits by trillions, leaving future generations to foot the bill. And despite claims by my colleagues across the aisle, there is not one credible analysis out there that finds that the tax scam pays for itself.
So while my colleagues on the other side of the aisle are sure to sing the praises of this tax scam, the facts are not on their side.
And with that, I yield back the balance of my time.