Hey, just stop right there!

How to counter false Republican claims about “tax reform,” aka tax cuts for the 1%

We need tax cuts to grow the economy…NO!

  • The average GDP growth over any 5 year period since WWII is 14.5%
  • The Clinton tax increases in 1993 were followed by 5 years of growth totaling 17.7%
  • The Reagan tax cut of 1986 was followed by 5 years of growth totaling 16.8%
  • The Bush tax cuts of 2001/2/3 were followed by 5 years of growth totaling only 14.4%

[Source: https://www.thebalance.com/us-gdp-by-year-3305543]

Tax cuts will create jobs…NO!

  • The average employment growth over any 5 year period since WWII is 7.5M jobs
  • The Clinton tax increases in 1993 were followed by an increase of 15.1M jobs
  • The Reagan tax cut of 1986 was followed by an increase only 10.6M jobs
  • The job growth after the Bush tax cuts of 2001/2/3 totaled only 7.9M

[Source: https://www.bls.gov/data/]

The GOP plan will be fairer…NO!

  • The latest House proposal will give the top 1% a 14% increase in income next year
  • The plan will give the top 0.1% a 17% increase in income
  • 80% of taxpayers will get virtually no benefit
  • Medicare would be cut by nearly half a trillion dollars over 10 years
  • By 2027, SNAP would be cut by 40%

[Source: https://www.taxpolicycenter.org/sites/default/files/publication/142556/2001397-dynamic-scoring-of-tax-plans-and-analysis-of-the-house-gop-plan.pdf]

The IRS is broken…NO!

  • The IRS implements the U.S. tax code, which is written by Congress
  • If the tax code is overly-complicated, blaming the IRS is obviously not the answer
  • IRS could easily facilitate tax preparation, but Congress won’t let it

[Source: https://www.nytimes.com/2015/04/16/technology/personaltech/turbotax-or-irs-as-tax-preparer-intuit-has-a-favorite.html]

The GOP plan will encourage savings and investment…NO!

  • Proposed tax cuts will increase the deficit by five trillion dollars over 10 years
  • For each $1 increase in the federal deficit, the effect on investment is a decrease of 33¢
  • Thus the GOP plan will decrease investment by $1.6 trillion in the next 10 years

[Sources: https://www.cbo.gov/sites/default/files/113th-congress-2013-2014/workingpaper/45140-NSPDI_workingPaper_1.pdf, https://www.nytimes.com/2017/04/27/business/economy/trump-tax-plan-deficit-column.html]

The death tax hurts family-owned business owners…NO!

  • The estate tax applies to bequests greater than $5.45M, or $10.9M per married couple
  • Only 4,700 wealthy people are affected per year

[Source: https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States]

U.S. companies pay the highest taxes in the world… NO!

  • The rate may be high compared to other industrialized countries
  • But the actual amount paid by corporations amounts to an effective rate of under 19%
  • Corporate tax revenue in the U.S. is 2.2% of GDP; the OECD average is 2.8%

[Source: http://www.npr.org/2017/08/07/541797699/fact-check-does-the-u-s-have-the-highest-corporate-tax-rate-in-the-world]