Democrats control the house, but the Republicans hold both the Senate and the White House. The plan proposed by Schumer and Sanders likely will not come through the GOP-controlled Senate or earn Trump's support. Senate Majority Leader Mitch McConnell's office did not have immediate response to the proposal.
Kevin Hassett, head of Trump's advice for financial advisers, told CNBC on Monday that he wanted "some economist to go and talk to these guys about how repurchase work."
Despite legislative hardship, Democrats will use it to try to get an advantage in the 2020 message. The party hopes to hold its majority, defeat Trump and get a Senate majority in next year's elections. Trump, which has poor degrees of approval, has at least one factor that buoys its re-election package: a solid economy.
With their plan-oriented buybacks, the Democrats are aiming for Trump's greatest economic achievement: the law that slashed the corporation tax rates and trimmed them for most individuals. The tax plan minced the corporate rate to 21
Democrats have thrown the plan as a gift to businesses and wealthy Americans. They have consistently pointed to the record $ 1.1 trillion in stock buybacks in 2018, mechanisms to increase stock prices unlocked in part by corporate tax savings.
Schumer and Sanders say that the buybacks have not helped workers. "First, stock purchases are not offered to the vast majority of Americans. That's because large shareholders tend to be richer. Almost 85 percent of all US-owned shares belong to the richest 10 percent of households," they wrote.
Trump has often asked the economy as its biggest achievement in the office. He will probably do it again on Tuesday in his state for the Union address.
The dueling tales will look forward to the 2020 election, to a small extent because the tax legislation gave Democrats something to criticize in an otherwise strong economy. Democrats "have the strongest case at this point" contrary to the plan leading to more stock purchases and increasing the wealthy, said Bill Galston, a senior scholarship study manager at the Brookings Institution.
Attacks on the tax plan and share buybacks will fit into the democrats' broader claim that they will do a better job of looking for the working class Americans that Trump promised to defend as a candidate.
"Both parties will try to argue that they are true defenders of the working class and middle class Americans," Galston said. "And undoubtedly democratic leaders including the presidential nominees will make the case that the Trump administration began by claiming the populism mantle and ended up bidding the Buddhists."
The proposal to buy back shares also reflects a shift in the center of gravity of the Democratic Party. The 2008 financial crisis and a belief that the wealthy people responsible for the evaded punishment drove a more populist bent in both major political parties.
The change helped drive Sanders, a vocal critic of banks and large corporations, to a surprisingly strong show in the 2016 Democratic presidential election primary. He could run again in a 2020 democratic primary dominated early to review discussions on whether and how to tax the rich more.
Galston expects Trump's any democratic opponent to develop policy of policy to increase the working class and tough in companies. 19659002] "I would be very surprised if the democratic president's nominee, whether left-handed or linking center, did not fight the transition to a minimum wage of $ 15 and other issues that have become commonplace," he said.
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