قالب وردپرس درنا توس
Home / Business / Schumer and Sanders cancel Trump tax cuts with share repurchase plan

Schumer and Sanders cancel Trump tax cuts with share repurchase plan



Democrats control the house, but the Republicans hold both the Senate and the White House. The plan proposed by Schumer and Sanders is unlikely to pass through the GOP-controlled Senate or deserve Trump's support. Senate Majority Leader Mitch McConnell had no immediate response to the proposal.

Kevin Hassett, chairman of Trump's Council of Economic Advisors, told CNBC on Monday that he wished "some economists would talk to these people about how repurchases take place work."

Despite the legislative hurdles For the plan, Democrats will seek to gain an advantage in the 2020 struggle. The party hopes to retain the majority in the house, defeat Trump and reach the Senate majority in next year's elections. Trump, who has a bad vote, has at least one factor in his re-election offer: a solid economy.

With their plan for repurchases, the Democrats are targeting Trump's most important economic achievement: the law, which lowers corporate tax rates and tailors them to most individuals. The tax plan reduced the corporate rate from 35 percent to 21

percent. Republicans who drafted the legislation argued that this would increase capital investment, labor productivity, wages, and economic growth. Trump called it a "middle class miracle".

The Democrats have issued the plan as a giveaway to businesses and wealthy Americans. They have consistently pointed to the $ 1.1 trillion record of share buybacks in 2018, mechanisms to increase stock prices, some of which were released by corporate tax cuts.

Schumer and Sanders say stock buybacks have not helped the workers. "First, stock repurchases do not benefit the vast majority of Americans, because large shareholders are wealthier, with close to 85 percent of American-owned stocks among the richest 10 percent of households," she said.

Trump has often praised the economy as his biggest actor. He is likely to do so again on Tuesday during his State of the Union speech.

The duel tales will play a prominent role in the 2020 election, not least because the tax law gave the Democrats cause for criticism in an otherwise strong economy. Democrats "have the stronger case at this point, arguing that the plan has led to more share buybacks and promoted the wealthy," said Bill Galston, a senior executive in governance studies at the Brookings Institution.

Attacks on the tax plan and share buybacks will fit into the broader Democrats' claim that they will pay more attention to the Americans of the working class who wanted to defend Trump as a candidate.

"Both parties will try to argue that they are real defenders of the working class and middle-class Americans," Galston said. "And undoubtedly, Democratic leaders, including the presidential candidate, will cite the case that the Trump administration asserted the cloak of populism and ended by the plutocracy's bid."

The proposal to repurchase shares also reflects a shift in Democrats' focus on the party. The financial crisis of 2008 and the belief that the wealthy people responsible for avoiding the punishment fueled a populist bias in both major political parties.

The change helped Sanders, a vociferous critic of banks and large corporations, to make a surprisingly strong showing in the 2016 presidency of the democratic presidency. He could once again dominate in a 2020 pre-election campaign, in the early days of discussions about whether and how Rich should be taxed more, is dominated.

Galston expects Trump's ultimate democrat opponent to support policies that empower the working class and empower businesses. 19659002] "I would be very surprised if the Democratic presidential candidate, whether he leans to the left or to the center, does not commit to moving to a minimum wage of $ 15 and other issues that have become a kind of common ground." , he said.

Subscribe to CNBC on YouTube.


Source link