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GOP Tax Bill Gives Away $520 Billion To Foreign Business Interests

Gage Skidmore / Flickr

The Republican tax plan fails to live up to President Trump's "America First" promise.

Despite President Trump's nationalistic rhetoric, the Republican tax bill up for consideration is more kind to foreign investors than middle class Americans. According to Newsweek, foreign business interests will receive more money in tax breaks than the entire American middle class.

That’s because foreign investors now own more than $6.5 trillion worth of U.S. equity and investment fund shares, and about 35 percent of all U.S. corporate stock, according to data from the Tax Policy Center. The GOP plan will lower corporate tax rates to 20 percent, benefiting foreign investors at the cost of at least $52 billion each year, or $520 billion over the next decade.

Senator Chris Van Hollen (D-MD) called it a "direct transfer of wealth from the American middle class to foreign investors."

“It’s totally backwards. This provides a huge tax windfall to wealthy foreign stockholders, paid for by middle class American households.”

The bill, which is up for a vote sometime this week, has received harsh criticism from numerous economists, even some within the White House.

“This is the worst tax deal I’ve ever seen,” Steven Rosenthal, a senior fellow at the Tax Policy Center, told Newsweek. “This is money off the table that we will never get back. Foreign investors will not be around when Social Security and Medicare run out of money.”

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