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- Scores of GOP lawmakers made millions off the 2017 Trump tax cuts, a new investigation by the Center for Public Integrity and Vox found.
- It sheds light on the lack of guardrails in place that would prevent lawmakers from crafting and passing legislation they stand to benefit from.
- The law created tax breaks for seven different types of assets commonly held by richer members of Congress.
- Corporations also bought back stock at record levels in the first year of the law, which boosts the rewards for shareholders – including many Republicans in Congress.
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Many Republican lawmakers profited off the tax cuts President Trump signed into law in 2017, according to a joint investigation by Center for Public Integrity and Vox on Friday.
The report sheds light on the lack of federal guardrails in place that prevents lawmakers from crafting and passing legislation they stand to benefit from.
Firty-six of the 47 Republicans across three congressional committees responsible for drafting the law held stock and stock mutual funds, according to the report, which reviewed members’ financial disclosure forms. The law likely shaved hundreds of thousands of dollars off their tax bills.
While Democratic lawmakers stood to benefit, none voted for the law.
Trump’s tax cuts slashed the corporate tax rate to 21%, while also creating tax breaks for seven asset classes including partnerships and real estate that richer members of Congress tend to invest in.
Among the members of Congress owning assets that received a tax break from the law:
- House lawmakers included GOP Reps. Jim Renacci of Ohio, Diane Black of Tennessee, Carlos Curbelo of Florida (Curbelo and Renacci lost their 2018 election campaigns). All sat on the House Ways and Means Committee, which played a key role designing the plan.
- In the upper chamber, Republican Sens. David Perdue of Georgia, John Kennedy of Louisiana, and Rob Portman of Ohio owned assets that received favorable tax treatment.
The law also generated massive savings for corporations. Last year, the government collected $150 billion less in corporate tax revenue.
Though Republicans argued the law would lead to increased business investment and higher wages for employees, corporations instead used the windfall to buy back stock and raise dividends that lead to more money going to shareholders. Buybacks, which jack up stock prices, exceeded $1 trillion in 2018, the report said.
Forty-three Republicans in Congress held stock in Apple when it posted record gains in October 2018. The value of its stock continues to increase, having recently posted its best performance in share price in a decade.
Craig Holman, an ethics expert with government watchdog group Public Citizen, told the Center that more than half of the 435 members of Congress are millionaires.
“They are passing tax laws and legislation that disproportionately favors the wealthy class,” Holman said. “And that means they personally benefit from this type of legislation.”
Democrats competing for the White House are seeking to prevent lawmakers from enriching themselves in Congress.
Sen. Elizabeth Warren put forward an anti-corruption plan last year that would bar members of Congress from trading bonds, stocks, hedge funds, commodities or derivatives and compel them to put assets in “widely held investment vehicles” such as mutual funds.
