Rep. Mimi Walters (R-Irvine) enthusiastically supported the GOP tax bill, claiming it would “provide benefits to individuals at all income levels and will generate significant economic growth.” Now, in a stunning revelation, the nonpartisan Congressional Budget Office (CBO) reports that, when the bill is fully implemented, 80 percent of the economic growth driven by the tax cuts will flow out of the country, benefitting foreign investors.
According to the CBO, more than a third of any gains from the tax bill are currently flowing out of the country. But by 2028, “when the full effects of the tax cuts are in place, that number will increase to 80 percent,” reports Newsweek.
“We heard statement after statement about how this tax plan would be great for American workers but the analysis is clear,” Senator Chris Van Hollen (D-MD) told Newsweek. “When this thing kicks in, 80 cents of every dollar [gained from the tax plan] will go to foreigners and not American workers. That’s a stunning number.”
Those benefits that remain in the United States are mostly going to the richest 1 percent and wealthy corporations. Numerous surveys show less than half of Americans have noticed any change in their paychecks. Wall Street investors, on the other hand, are relishing in billions of dollars of corporate stock buybacks.
When Walters was campaigning for the bill, she never said most of that growth would leave America’s shores. But it looks like Americans will still be saddled with more than $1 trillion in additional deficits, and Californians will get to keep the higher taxes from the tax bill, while wealth gets redirected elsewhere.
In Walters’ backyard, Orange County, homeowners will see tax hikes of up to $4,500. Across the state, residents will pay billions more in taxes. The Republican tax bill “substantially increase[d] the share of total federal personal income taxes” paid by California, according to the Institute on Taxation and Economic Policy. Most other states will “receive a larger share of the tax cuts relative to what they pay to the federal government today.”
When Walters first ran for Congress, she pledged to slow the growth of America’s $17 trillion deficit. In reality, she is helping to grow it exponentially, so much so that credit agencies are contemplating downgrading America’s credit rating. Combined with other Republican policies, including the recent spending bills, the GOP bill will increase the deficit by a projected $2.4 trillion over the next 10 years according to the Committee for a Responsible Federal Budget (CRFB).
Walters voted for a bill that explodes the deficit, increases taxes on Californians, and sends 80 percent of the benefits outside of the U.S.
In the words of Democratic Minority Leader Nancy Pelosi, “California Republicans betrayed their constituents and their state to hand Speaker Ryan the votes for a bill designed to hit Californians with the largest net tax hikes of any state in the nation.”