Republican senator says U.S. tax law gives workers little help

'No evidence whatsoever' new laws are significantly helping American workers: Rubio
May 1, 2018

Transcript

It's the only big legislative achievement for Republicans since President Trump took office, but now prominent Republican Senator Marco Rubio says there is "no evidence whatsoever" that the GOP tax overhaul has significantly helped American workers.

That comment comes from an interview with the Economist magazine, and could very well undercut his party's message about the tax law — which went into effect this year — ahead of the 2018 midterm elections.

(SOUND BITE) U.S. PRESIDENT DONALD TRUMP, SAYING:

"We will cut taxes for everyday hard-working Americans."

Trump and other Republicans said their tax overhaul will lead to more take-home pay for workers, and have touted the bonuses some workers received from their employers as evidence the law is working.

(SOUND BITE) U.S. PRESIDENT DONALD TRUMP, SAYING:

"Now you have all of the big — I mean, so many of the big companies — they've given bonuses to the people that work for the company. That was unexpected. Nobody thought that was going to happen."

The tax overhaul, which sailed through the Republican-controlled Congress in December without Democratic support, permanently cut the top corporate tax rate from 35 per cent to 21 per cent. Tax cuts for individuals, however, are temporary and expire after 2025.

A poll of registered voters done in April by Politico found that only about a fifth of those surveyed were noticing more money in their paycheques.

Some economists say it could be too early to notice a significant change, but one economist cited in a New York Times report on recent U.S. economic growth noted that "longer term, the immediate benefits of tax reform will fade, and what we'll be left with is the bill."

— Chris Dignam