The U.S. economy is roaring under the economic leadership of President Donald Trump, but several 2020 Democrats plan to tear apart the president’s economic policy, should they replace him.
Trump’s domestic economic policy can be boiled down to two key goals: cut regulations and cut taxes. The president set a goal to cut two regulations for every new regulation put in place — a goal he’s exceeded so far in his presidency.
In 2017, Republicans passed the Tax Cuts and Jobs Act with a focus on scaling back the corporate tax rate which was, at the time, the highest in the developed world. Most individuals also saw a cut in their taxes, much to the chagrin of the New York Times.
Trump’s policies have contributed to job creation, record low unemployment, and rising wages.
Since the passage of the Tax Cuts and Jobs Act, unemployment rates for women, Hispanic Americans, black Americans, and veterans saw record lows. In the month of April, the unemployment rate hit a 49-year-low.
The White House Council of Economic advisers credited Trump’s economic policy for the sudden eruption of the U.S. economy following the record-breakingly slow economic recovery under former President Barack Obama. They warned that a repeal of the Tax Cuts and Jobs Act could set back the U.S. economy.
Still, many Democrats are vowing to repeal the tax cuts if they win the presidential election in 2020.
Former Vice President Joe Biden told a crowd of primary voters that repealing the “Trump tax cuts” is one of the first things he would do as president. He claimed that returning the corporate tax rate to a global-high would allow more money to pay for his other pet projects.
Watch Biden’s comments:
“You know, people say, ‘Well Joe, how [are] you gonna do all this?’ Well, guess what. The first thing I’m do is gonna repeal this Trump tax cut,” said Biden, adding, “Oh, [it’s] not a joke.”
Senator Bernie Sanders (I-Vt.) is going to need as much tax revenue as possible if he’s going to deliver on his promises for “Medicare for All,” tuition-free college, and his other socialist promises. One way he plans to get the money is by repealing the Tax Cuts and Jobs Act so the corporate tax rate returns to its previous level.
According to a report from Mother Jones, Sanders sees returning the tax rate to a higher level as a great way to make money. He called the tax cuts a “massive giveaway to Wall Street, wealthy Republican campaign contributors, and large, profitable corporations” — despite most middle-class Americans getting a tax cut.
As IJR Red previously reported, Senator Kamala Harris (D-Calif.) promised to “get rid of the whole thing” in reference to Trump’s tax cuts. The senator promised to return the corporate tax rate to a higher level and use the money to fund some of her other initiatives.
When people ask me “How are you going to pay for middle-class tax cuts?” I'll tell you – I’m going to repeal that Trump trillion dollar tax cut that benefitted the top 1% and the biggest corporations in our country. #NAACPDetroit
— Kamala Harris (@KamalaHarris) May 6, 2019
Harris said repealing the tax cuts would be a top priority, telling a crowd of primary voters, “On day one, we’re going to repeal that tax bill that benefited the top 1 percent and corporations.”
Long before Senator Elizabeth Warren (D-Mass.) had even entered the 2020 race, she was pushing to have the corporate tax rate returned to a higher level.
In a CNBC interview from July 2018, Warren said she “really want[s] to see them rolled back.” She claimed the tax cuts were just “bread crumbs” to the American people.
“Here’s how I look at budgets and taxes are at the heart of this. A lot of people think they’re just numbers; they’re not. They are the expression of our values. The values of the Republican Party that passed those tax cuts are to give $1.5 trillion away to the richest Americans and the biggest corporations, and let everybody else pick up the crumbs.”
Watch Warren’s comments:
Senator Cory Booker (D-N.J.) is in step with his peers who see a repeal on the Tax Cuts and Jobs Act as an untapped pool of money that should be returned to Congress. Although he has yet to call for a full repeal, he has called for a partial repeal of the portion of the bill that limited the estate tax.
Booker hopes to use estate tax money for a redistribution program that would set up a treasury bond for newborns to help them financially when they reach adulthood.
Despite the record-breaking economic success of the Trump economy, it is clear that 2020 Democrats see a better way forward by returning to the stagnant tax policies of the Obama-era.