Amid warning signs of recession, rather than helping normal Americans Donald Trump has yet again suggested a new round of tax cuts for the rich. Trump has proposed, then backed down from, then proposed again, then backed away from again, indexing capital gains to inflation, which would hand over $100 billion in tax cuts to some of the richest Americans. We shouldn’t be surprised that Trump is putting rich people’s interests first- that’s the core of his economic agenda.
Trump is completely willing to use his economic policies to enrich wealthy people around the world while hurting normal Americans. His tariffs take heavy tolls on American workers due to increasing consumer prices, yet his policies give huge tax cuts to foreign investors and shareholders in American companies. For all of his “America First” promises, his actions clearly show that he prioritizes “Rich People First.”
Trump’s tax policies help corporations enormously. When the tax cuts were passed, the Trump administration predicted that corporations would boost wages and families would see large pay increases. However, these tax cut benefits are flowing into after-tax profits for stockholders instead of into the wages of American workers. Today, almost 35% of U.S. equities are owned by foreigners. That means that on top of American workers not seeing tax cut benefits, the money isn’t even going to Americans.
Instead, the money is going to wealthy foreigners who own stock in American companies. These foreigners are gaining more from the Trump tax cuts than American workers ever will. It’s clear that Trump’s allegiance to members of his class across the globe is much stronger than his concern for low-income Americans.
Back home in America, Trump claimed that the middle class would be the biggest beneficiaries of the Republican tax reform. However, families earning $200,000 or more have seen and will continue to see their tax bills drop the most. By 2027, most of the tax cuts will go to the 1%, with 70% of middle class families would experience tax hikes.
On top of receiving almost no benefit from the Trump tax bill, Trump’s tariffs have added insult to the injury for American workers. Through his tweets, he frequently claims that China will eat the cost of the tariffs, but it’s American workers who are going to end up paying for them. Average American households will lose over a thousand dollars per year because of Trump’s tariffs. These tariffs cost lower-income families a larger share of their income than they cost upper-income families, and the burden will only get worse. Trump announced that more tariffs could go into effect in December, and these tariffs will affect consumer goods even more.
As the warning signs of a coming recession become more and more clear, it is obvious that the Trump administration needs to focus on economic policies that help the majority of Americans. Having a “Rich People First” mentality will not solve problems with the economy. It is time for Trump to prioritize American workers instead of wealthy foreigners.