Liberal Opposition to Tax Reform Explains Party's Minority Position

COMMENTARY Taxes

Liberal Opposition to Tax Reform Explains Party's Minority Position

Jan 29th, 2018 2 min read
COMMENTARY BY
Tommy Binion

Vice President of Congressional and Executive Branch Relatio

Thomas is responsible for Heritage's many programs on Capitol Hill and its engagement with the administration.

Key Takeaways

Before the bill passed, Minority Leader Nancy Pelosi said, “In terms of America’s future — if they vote for this bill, there’s a political price to pay.”

Instead of legitimate policy analysis, Democrat leaders are giving us a play by play of the 2018 political horse race.

The Democratic Party has not been successful in recent years. Republicans are in the Majority in the House and the Senate, and they control the White House.

Democrats unanimously opposed the Tax Cuts and Jobs Act in the House. None of them saw the wisdom in voting for an $1,182 tax break for the average family.

Are they that implacably opposed to tax cuts? Or are they simply blinded by politics? Perhaps they feel that if Republicans fail, Democrats will have an opportunity to take over the majority in the House. Why else would they be rooting against their constituents’ best interests and that of the nation at large?

Before the bill passed, Minority Leader Nancy Pelosi said, “In terms of America’s future — if they vote for this bill, there’s a political price to pay.” Apparently she thinks “in terms of Democratic Party success” means the same thing as “in terms of America’s future.” I hope most Americans disagree, and count the well-being of themselves, their families, their neighbors, and their businesses as what determines “America’s future.”

In the GOP tax plan, Democrats don’t see a tax cut for the vast majority of their constituents, and they don’t see a business tax cut that will lead to economic growth that helps us all. Instead, they see a political target to attack, and that’s a shame. They’re not considering the effects of the bill on Americans in their states and districts. If they were, they’d see that this bill cut taxes for almost everyone, and helps American business compete globally.

Here’s how Senate Minority Leader Charles Schumer expressed his thoughts on the tax bill: “The closer this bill gets to becoming law, the greater threat it poses to Republicans majorities in the House and Senate.” Apparently, in his great concern over the specter of a Republican majority, he forgot to consider the middle-class families and small businesses who are poised to see a tax cut and an increase in take-home pay.

Instead of legitimate policy analysis, Democrat leaders are giving us a play by play of the 2018 political horse race. If they had bothered to take a look at the independent analysis of the bill, here’s what they would’ve found.

The Tax Foundation ran an analysis of the bill’s effects on nine different Americans with various incomes and filing statuses. Incomes ranged from $30,000 to $2 million. The single man with no kids earning $30,000 a year will get a $379 tax cut. The couple with two kids earning $85,000 a year will get a $1,554 tax cut. The tax cuts continue all the way up the income ladder for Americans in all types of situations — until they hit the couple earning $2 million a year. That couple, the only one analyzed that is not getting a tax cut, will pay an additional one percent.

The Heritage Foundation analyzed the economic growth associated with the benefits of this tax plan, and found growth that would dramatically impact the economy and the lives of every day Americans. They found that the Tax Cuts and Jobs Act would lead to an additional 2.6 percent of economic growth, and a $4,098 increase in GDP per household. The Tax Foundation calculated that the bill would lead to 3.5 percent GDP growth.

The Democratic Party has not been successful in recent years. Republicans are in the Majority in the House and the Senate, and they control the White House. Obviously, the Democrats want to take back some control. However, it is apparent based on their ignorance of the positive effects of the GOP tax plan, that Democrats have let their thirst for power blind them.

In terms of America’s future, instead of constantly searching for a political advantage, the country would be better served by a Democratic Party that is constantly searching to benefit the Americans who sent them to Washington.

This piece originally appeared in The Hill on 11/29/17