September 9, 2015 12:52 PM | Permalink |
For Immediate Release: Wednesday, Sept. 9, 2015
Contact: Jenice R. Robinson, 202.277.8750, Jenice@ctj.org
Jeb Bush’s Tax Plan Is a Corporate Giveaway Disguised as Tax Reform
Following is a statement by Bob McIntyre, director of Citizens for Tax Justice, regarding the tax plan outlined today by presidential candidate Jeb Bush.
“Jeb Bush’s tax reform rhetoric is far more salient than his actual plan. He derides special interest giveaways and crony capitalism but then outlines a plan riddled with special interest giveaways and crony capitalism ideals.
“Bush’s proposed corporate tax changes would almost certainly push our historically low corporate taxes even lower. Members of Congress have been unable to identify a revenue-raising, let alone revenue neutral strategy for cutting the corporate tax rate to 28 percent, but Bush says he will slash the rate to 20 percent. He claims this rate is doable simply by closing most corporate loopholes, but then he also says he will make one of the biggest corporate giveaways—accelerated depreciation—even bigger under his plan to allow immediate expensing of capital investments.
“On the international front, the plan is just as untenable. Bush proposes a territorial tax system that would permanently exempt most offshore corporate profits from U.S. tax. He would essentially reward tax-dodging corporations that have stashed more than $2 trillion offshore by allowing them to pay a tax rate of just 8.75 percent when these profits are repatriated—a 75 percent discount on the tax these companies should be required to pay.
“Bush’s proposal to end the carried-interest loophole is a common-sense reform that has been endorsed by presidential candidates on both sides of the aisle. But in the context of Bush’s overall plan, this welcome move is simply a fig leaf to disguise a far bigger, costly and regressive cut in the tax rate on capital gains.
“The bigger problem with Bush’s plan is that it talks about tax cuts in a vacuum, as though taxes are unrelated to the nation’s need to raise revenue and pay for vital public services. He claims his tax cut plan will spur 4 percent growth, but history has demonstrated that aggressive tax cuts for corporations and the wealthy do not, in fact, stimulate economic growth.”