Investor's Business Daily: "The Latest Tax Cut Lie: The Senate Bill Will Hurt The Poor"
“The Senate tax bill would reduce income taxes for people at every income level — even those who don’t pay taxes.”
The Latest Tax Cut Lie: The Senate Bill Will Hurt The Poor
Investor’s Business Daily
November 27, 2017
The Senate tax bill would reduce income taxes for people at every income level — even those who don’t pay taxes. That’s the official conclusion of the Joint Committee on Taxation. So why are Monday’s headlines screaming that the tax cuts would make the poor much worse off?
This conveniently fits with the Democrats’ evergreen talking point on tax cuts — that they benefit the rich at the expense of the poor. But is it true?
Not. At. All.
First of all, the CBO doesn’t describe the Senate bill as being “harsh” to the poor. That's the spin put on by the reporter.
The report does, however, include a table that shows how the bill would affect federal revenues and spending by income group. And, indeed, it appears to indicate that those making less than $40,000 will take it on the chin, while those making more than $100,000 make out like bandits.
But note the word “spending” above. Since this is a tax-cut bill, why is “spending” part of the calculation at all?
That’s in there because the CBO includes the spending impact of the Senate bill’s repeal of ObamaCare’s individual mandate.
And this is where things get really fishy.
When Republicans demanded a distribution table that looked only the impact of the tax cuts in their tax cut bill, the result was remarkably different.
What that table…indicates is that every income group will get tax relief — including those who don’t pay taxes because of the bill’s hike in refundable tax credits.
And, by the way, none of these tables accounts for the economic boost, the new jobs and the increased income that will result from the GOP’s tax cuts.
Anyone want to claim the poor will be hurt by that?