March 9, 2016 11:04 AM | Permalink |
For Immediate Release: Wednesday, March 9, 2016
Contact: Jenice R. Robinson, 202.299.1066 X29, Jenice@ctj.org
New Analysis: Paying for GOP Tax Plans Would Wipe Out Income Gains for Most Americans
(Washington, D.C.) When the tax and spending implications of GOP tax plans are considered, the vast majority of Americans would be worse off, according to a new report from Citizens for Tax Justice that sheds more light on the true impact of GOP tax plans.
The new distributional analysis takes a different approach to examining presidential tax plans by looking at the spending implications of the candidates’ deficit-financed tax proposals.
“The GOP candidates continue to propagate one of the most pernicious myths of our time — that tax cuts come without a cost,” said CTJ director Bob McIntyre. “In truth, we would eventually have to pay for these national debt-ballooning tax cuts with tax increases, drastic cuts in federal spending or a combination of both.”
The new reports intends to broaden the discourse around tax policy proposals by providing an analysis of how various income groups would be affected by a combination of tax increases and spending cuts. The results of the analysis are sobering but not surprising. Under Donald Trump and Marco Rubio’s plans, the bottom 95 percent of taxpayers sustain a net loss, and under Ted Cruz’s plan, the bottom 80 percent would lose. And this is under the rosiest of scenarios.
CTJ analysts point out that the results would be far more severe for middle- and low-income families if the candidates’ proposed tax cuts were paid for solely by cutting public services such as child care, housing, health care, food assistance, Social Security and other programs that boost income security.
“We cannot continue to have a half-baked conversation about tax policy and tax cuts,” McIntyre said. “The truth is that the nation is not in a financial position to promise across-the-board tax cuts and certainly not top-heavy tax cuts that benefit the wealthy at the expense of everyone else.”