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%
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
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%
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
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
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%