In response to the tax plan outline proposed jointly by President Trump and Congressional leaders, Paul O’Brien, Oxfam America’s Vice-President for Policy and Advocacy, made the following statement:
“The tax plan introduced today is a blueprint for increased inequality. There is no doubt that the biggest winners in our global economy are those at the top, and this proposal will skew that even further.
“Instead of the real reform the President promised on the campaign trail, this plan offers more tax cuts for the rich and budget cuts for the poor. While President Trump was elected on his promise to fix the rigged political and economic system, these proposals will only further rig the rules in favor of the rich and powerful while harming poor families in the US and in developing countries worldwide.
“Every year corporate tax dodging costs Americans approximately $135 billion. The same tricks, schemes, and offshore tax havens sap an estimated $100 billion from poor countries – revenue that should go towards building schools, bridges and hospitals. The plans released today do nothing to solve these problems.
“Worse yet, the ideas offered today perversely reward the very companies that dodge the most taxes. This plan will incentivize further use of offshore tax havens that harm America and poor countries alike. Huge tax cuts for the wealthy and big corporations will have to be paid for by cuts in anti-poverty programs at a time when need for global engagement and solutions to inequality is only growing. If anything the plans will incentivize companies to offshore more jobs and profits.
“The President and Congress should go back to the drawing board and start over with a plan that works with our allies around the world to stem tax haven abuse. Only through cooperation can we avoid a global race to the bottom where everyone but the richest will suffer.”