American Bridge Vice President Shripal Shah released the following statement in response to the House passing the Trump tax plan:
“In lockstep with Donald Trump, House Republicans just voted to raise taxes on 36 million middle class Americans, cut Medicare by $25 billion, and outsource American jobs – all to cut taxes for the super rich and big corporations. This is a disastrous plan that sells-out hardworking, average Americans who are counting on jobs and a better economic future. The country deserves better, and the public will hold these Republicans accountable.”
Yesterday, Bridge Project released a new digital ad running nationally on Facebook, “Trumps Tax Plan Sells You Out,” which highlights warnings that the Republican tax plan would break Donald Trump’s #1 promise and help outsource American jobs he said he would protect.
Raising taxes on middle class Americans
The nonpartisan Tax Policy Center estimates that the House Republican tax bill would raise taxes on 36 million middle class Americans. [Tax Policy Center, 11/13/2017]
According to the Congressional Budget Office, the Republican tax plan that just passed the House would cut Medicare by $25 billion. [Congressional Budget Office, 11/14/2017]
Encouraging the outsourcing of American jobs
Numerous economic experts warn that the House Republican tax proposals create enormous new incentives for the outsourcing of American jobs by charging higher rates on domestic profits than foreign profits, encouraging companies to move operations offshore.
Yesterday even a Republican Senator echoed these concerns.
- Tax Policy Co-Director William Gale: “The plan would also move the U.S. toward a territorial tax system, under which U.S. companies would pay no U.S. taxes on their foreign income. That would encourage them to ship jobs, capital, and profits overseas.” [Brookings Institution, 10/20/2017]
- Institute on Taxation and Economic Policy: “This would worsen the already substantial problem of corporate tax avoidance and result in more jobs and investment leaving the United States.” [Institute on Taxation and Economic Policy, 9/18/2017]
- Former National Economic Council Director Gene Sperling: “Why would Trump and Republicans in Congress support a plan designed to incentivize sending jobs overseas and transferring tax revenues from the U.S. to other countries? The answer is that such a plan would please large multinational companies, who lobbied heavily for a minimum tax on foreign earnings to be watered down. In other words, instead of a minimum tax that would discourage companies from moving jobs and shifting profits overseas, Trump and congressional Republicans have settled on one that would encourage more of both.” [The Atlantic, 11/1/2017]
- Center for American Progress: “Such an approach would reward massive corporate tax avoidance and lose revenue needed to invest in the domestic economy—and it could hurt American workers by further incentivizing offshoring of investment and jobs.” [Center for American Progress, 9/22/2017]