SENATE REPUBLICANS WANT TO SKIMP ON CRITICAL INFRASTRUCTURE TO PROTECT A TAX BILL THAT HURT THE ECONOMY

Congress has a once-in-a-generation opportunity to pass the American Jobs and Families Plan, a bold investment in American infrastructure, manufacturing, clean energy, and caregiving. But Republicans in Congress have made clear they will oppose any plan that rolls back portions of the 2017 Tax Cuts and Jobs Act (TCJA) and are willing to gut President Biden’s plan to protect their legislation, claiming it would hurt the economy.

While discussions on job creating, pro-growth investments tend to foolishly overemphasize the need to find one-to-one pay-fors on the front end, the idea that rolling back the 2017 corporate tax cuts would harm the economy is patently absurd. In fact, the opposite is true. 

Facts About The 2017 Corporate Tax Cuts Senate Republicans Are Fighting To Protect: 

The TCJA did not generate the promised economic growth: 

  • Despite promises that tax cuts would lead to job growth, only 4% of companies boosted hiring because of tax cuts. Others closed stores and laid off workers by the thousands.
  • Overall, the TCJA had no visible effect at all on business investment, according to the International Monetary Fund — and a Center for American Progress analysis found that business investments had actually declined by 2019.
  • A 2019 CBO report projected that annual output growth would slow from 2019-2029, along with consumer spending and purchases of goods and services by federal, state, and local governments.
  • In the six quarters after the TCJA’s passage, GDP grew at an annualized rate of 2.5 percent — that’s 0.1 percentage point lower than the same rate in the six quarters before the bill’s passage.

The TCJA funneled money to large corporations and the rich: 

Worst of all, the TCJA will raise taxes on the middle class. 

  • While the TCJA’s tax cuts for corporations were permanent, the legislation’s minimal tax cuts for families were temporary. By 2025, those tax cuts will go away, and middle class families will see their taxes increase.
  • By 2027, 53% of Americans will pay more in taxes under the Tax Cuts and Jobs Act.

“If Republican lawmakers truly intended to help working people, they would have made changes that benefit families and individuals permanent. Instead, they prioritized tax cuts for profitable corporations.” 

 

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