Republicans sold their tax bill as one of the most consequential bills in a generation, claiming it would shower Americans with larger paychecks and spur an already-growing economy to even greater heights.
Rep. Steve Knight (R-Palmdale) boasted it would allow workers to “see more money in their paychecks every month for them and their families to enjoy.” Rep. Mimi Walters (R-Irvine) said the bill would “increase economic growth and create opportunities for all Americans.” And Trump declared the bill would be “rocket fuel” to the economy.
Unfortunately, Republican rhetoric is writing checks that reality can’t cash.
Looking at wage data from the March 2018 jobs report, the Washington Post concludes, “it’s not clear that there’s been any significant boost post-tax cuts (January to March) than in the previous three-month periods.”
And despite overhyped press about companies adding jobs, overall job growth continues at a steady pace, far from the promised massive expansion. “The three-month average of jobs created was about 202,000 — largely in line with that average over the past several years. (The average three-month average since January 2015 is 204,000.),” according to the Washington Post.
The new wage data is in line with multiple national surveys, each of which show the majority of Americans have not noticed any increase in their paycheck.
Simply put, the tax bill is a $1.5 trillion dud, financed by debt and higher taxes for Californians.
Millions of Californians will be hit with higher taxes in the coming years, thanks to the efforts of Knight and Walters. Meanwhile, companies are enriching Wall Street investors rather than using Republican tax giveaways to help workers.
Los Angeles-area home buyers can thank Knight and the rest of the GOP who supported the tax bill for adding about $76,000 to their 30-year mortgage. Orange County homeowners may be on the hook for up to $4,500 more taxes this year alone, with help from the support of Walters.
Those who are already wealthy are getting a massive tax break, as this interactive map shows.
While the wealthy get even more wealth, and corporations enjoy a golden age of private jet ownership, California’s workers are left to pick up the tab. Betrayed by Knight and Walters, the bill will “substantially increase the share of total federal personal income taxes” paid by Californians, according to economists.
Even one California Republican admitted “almost all of the bill’s tax cuts would be distributed to other states — leaving California with the bill.”
Walters once said, “When all is said and done, California taxpayers will benefit from this historic tax package and the American economy will flourish.”
All is now said and done, and Californians are stuck paying higher taxes. The nation is saddled with massive debt all so that job growth and wages can continue just like they were before any bill was passed at all.