Jul 27, 2015 | By CAP Action War Room
The Gap Between Rhetoric and Reality of Republican Prescriptions for the Economy
In recent decades, dramatic changes have squeezed the middle class, making it harder and harder for middle-class families to feel economically secure. In response to these changes, GOP candidates have shifted their rhetoric and begun decrying stagnant wages, inequality, and rising middle class costs. For example, in his campaign launch speech Jeb Bush said we need to “make opportunity common again.” Meanwhile, Sen. Marco Rubio introduced his tax plan in an op-ed with Sen. Mike Lee saying, “Too many Americans believe the American dream is slipping away.”
But a new report from CAP Action finds that despite its new rhetorical shift, the GOP continues to propose policies that would undercut economic security for working- and middle-class families. Even as Republican candidates talk about restoring the American dream and expanding opportunity to all Americans, they continue to embrace the same, failed policies that have led to middle class Americans being squeezed by rising costs and stagnant wages.
Here are a few of the key facts on how the middle class is at risk and how Republican policies would only make things worse:
- Republicans continue to support tax policies that favor the wealthy but do little for middle class families. Many of the GOP candidates favor eliminating capital gains taxes, which would do nothing for middle-class Americans. Middle-class families receive very little income from capital gains and dividends: Only 6 percent of market incomes for households in the middle quintile come from business income, capital income, and realized capital gains. The top 1 percent of households, on the other hand, receive more than half of their incomes from these sources. Eliminating capital gains taxes is nothing more than a massive tax cut for the wealthiest few.
- Republican governors are blocking bills that help families juggle the demands of work and home.Of the 12 states with laws preempting localities from taking actions like increasing the minimum wage or offering paid sick leave, 11 were passed by a GOP governor and legislature since 2011. In particular, Wisconsin Gov. Scott Walker signed a preemption bill that nullified Milwaukee’s paid-sick leave law which would have helped 120,000 Milwaukeeans–or 47 percent of the city’s private sector workforce.
- Despite the rhetoric, GOP economic policies favor the wealthy. In 2014, 41 Republican senators with an average net worth of $8.1 million, including several eventual presidential candidates, voted against giving low-income Americans a $6,000 raise.
- Instead of investing in working Americans, Republicans have been slashing key pillars of opportunity, such as education. More higher education cuts have occurred under Republican leadership than under Democrats. Between 2007 and 2014, real state funding for public education grew under Democrats and fell 10 percent in states led by Republicans. This also led to higher tuition increases.
- Republicans still oppose a minimum wage. If a Republican president spent two terms in office continuing to block a minimum wage increase, like each of their positions today, the value of the minimum wage would fall below $6 in today’s dollars, lowest in 70 years.
BOTTOM LINE: Decades of failed, trickle-down economic policies have left middle-class Americans struggling. Disguising old, top-down policies with new rhetoric is as disingenuous as it is dangerous.
This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe. Like CAP Action on Facebook and follow us on Twitter!