A loophole in the law championed by Senator Ron Johnson delivered an average of just $20 to middle-income families, while it was a boon of over $25,000 to the wealthiest one percent.
Wednesday, November 2, 2022
MADISON, Wis.—Five years ago today the 2017 Tax Cuts and Jobs Act (TCJA) was introduced in the House of Representatives by Congressional Republicans. President Donald Trump signed the law in December of that year, after Senator Ron Johnson pushed to include a loophole that benefited his own family's business and his wealthy donors. After the bill became law, Senator Johnson cashed out of the company for at least $5 million.
This anniversary comes as Congressional Republicans are sharing plans to make permanent several provisions in the TCJA. Reports indicate they will also push for scrapping some of the law’s tax increases on corporations. Many economists have indicated this move would make inflation worse.
While Senator Johnson called his Trump tax loophole his “crowning achievement,” economists have determined that it delivered an average of just $20 to middle-income families, while it was a boon of $25,700 to the wealthiest one percent. In April, Senator Johnson admitted that the tax loophole benefitted his family business and his wealthy donors.
Opportunity Wisconsin has spent over $9 million in TV, digital, mail, and radio since early 2021 to hold Senator Johnson accountable to his constituents for his legislative record and to demand he vote for policies that support Wisconsin residents.
Meghan Roh, Opportunity Wisconsin Program Director:
“Not only did Senator Johnson push through a loophole in the Trump tax law that benefited his family’s business and disproportionately benefits the wealthy, including his mega donors, but it was done at the expense of working Wisconsinites. In fact, most low and middle-income Wisconsin residents will actually see tax hikes by 2027.
“Meanwhile, Senator Johnson continues to stand against laws to bring new, good-paying jobs to the state, bring down the costs of health care and prescription drugs, and cut taxes for families with children. We’re calling on Senator Johnson to oppose any extension or expansion of the Trump tax scam and address the economic needs of his constituents.”
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