...see also Aug. 30 page

Sept. 27, 2017
The White House


Farm Bureau Building
Indianapolis, Indiana
3:30 P.M. EDT
THE PRESIDENT:  Thank you very much.  You just want massive tax cuts.  That's what you want.  That's the only reason you're going so wild.  (Applause.)
But it’s wonderful to be back in the great state of Indiana.  What a place.  (Applause.)
I want to thank Senator Todd Young, Senator Joe Donnelly, Representative Jackie Walorski, Representative Susan Brooks, and Representative Mike [sic] Messer for joining us today.  Thank you very much.  Thank you very much for being here.  Appreciate it.  (Applause.)
I also want to thank members of my economic team, Secretary Steven Mnuchin and Director Gary Cohn, for joining us, as well.  We appreciate it.  (Applause.)
Let me begin by saying that our hearts and prayers go out to the people of Puerto Rico and the Virgin Islands who are suffering in the wake of yet another catastrophic hurricane.  I mean, their island was virtually destroyed.  Federal agencies are working closely with local partners to help these communities get back on their feet as soon as possible.
Texas, Florida, and Louisiana are doing great, and the recovery process is happening very, very quickly.
I will be going down to Puerto Rico next week to get an on-the-ground briefing about the disaster recovery and to see all of our great first responders and to meet a lot of the people who were so affected by these storms.  We are with you now, I tell them, and we will be there every step of the way until this job is done.  It is truly catastrophic what happened in Puerto Rico.  (Applause.)
And massive amounts of water, food, and supplies, by the way, are being delivered on an hourly basis.  It’s something that nobody has ever seen before from this country, I can tell you that.  And I’m very proud of all of the folks that have worked so hard in FEMA, all of our first responders, all of our police that have gone to the island because their police force has been so badly affected.  And many of their policemen -- in fact, most of the police people have lost their homes, and it’s been a tough go.  But we are -- we're going to get it back.
Before we go on to discuss the largest tax cut in our county’s history, I also want to provide a brief update on healthcare.  We have the votes on Graham-Cassidy.  But with the rules of reconciliation, we're up against a deadline of Friday -- two days.  That's just two days.  And yes-vote senator -- we have a wonderful senator, great, great senator -- who is a yes vote, but he’s home recovering from a pretty tough situation.  And with so many great features, including all of the block granting, the money to the states, et cetera, et cetera, our healthcare plan is really going to be something excellent.  It’s going to be better managed for the people that it serves.  Having local healthcare representatives is far better than having healthcare managed from Washington, D.C.  Not even a contest.  (Applause.)
And many, many governors, as you also see, have agreed with us and approved it and really look forward to running it properly.  But again, because the reconciliation window is about to close, we have to wait a few months until it reopens before we take a vote.  So we're getting all of the good signs from Alaska and the others to repeal and replace Obamacare.  And I was hoping this would be put on my desk right after we won the election, and I’d come in and sign.  But it didn't work that way.  There were a couple of people that -- I won’t say anything.  (Laughter.)  But early next year when reconciliation kicks back in, in any event long before the November election, we're going to have a vote.  And we're going to be able to get that through, and I think we’ll actually get it through very easily and the time makes it easier.
But speaking of reconciliation, the Republican Senate needs to get rid of the filibuster rule, which is blocking so many great legislative reforms the American people badly want and deserve.  By the way, the Democrats, if they had the opportunity, which hopefully they won’t for many, many years, they would get rid of it on day one.  And most of you know exactly what I’m talking about.
We’re here today in Indiana to announce our framework to deliver historic tax relief to the American People.  (Applause.)
This is a once-in-a-generation opportunity, and I guess it's probably something I can say that I'm very good at.  I've been waiting for this for a long time.  We're going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans, and we are going to bring back the jobs and wealth that have left our country -- and most people thought left our country for good.  (Applause.)
We want tax reform that is pro-growth, pro-jobs, pro-worker, pro-family, and, yes, tax reform that is pro-American.  (Applause.)  It's time to take care of our people, to rebuild our nation, and to fight for our great American workers.  (Applause.)
Indiana is a tremendous example of the prosperity that is unleashed when we cut taxes and set free the dreams of our citizens.  This state has claimed a powerful competitive edge built on low taxes and less regulation -- and are we cutting regulation?  (Applause.)
And businesses all across the country have taken notice.  In recent years, Indiana has welcomed dozens of companies fleeing high taxes and high-tax states.  Thousands of new jobs and massive capital investment have followed -- meaning a better quality of life for the people of Indiana.
All of this is possible because the people of this state have made a decision. They chose to make Indiana competitive again.  They chose, and their choice was so important.  It included electing a governor, who you may have heard of -- (laughter) -- who signed the largest income tax cut in the state’s history, our very, very terrific person and terrific Vice President, Mike Pence.  (Applause.)
It's time for Washington to learn from the wisdom of Indiana.  We need Washington to promote American jobs instead of obstructing them.  That is what I have been working to achieve every day since I took office.  That is what I talked about on the campaign trail.
Already, we're seeing the results of an economic policy that finally puts America first.  (Applause.)  Unemployment is at a 16-year low.  Unemployment for African Americans is near its lowest point since the turn of the millennium.  It's really a fantastic thing to see.  (Applause.)
Wages are rising.  Optimism among manufacturers has reached all-time highs.  GDP growth last quarter reached 3 percent way ahead of schedule; nobody thought that was going to happen for a long time.  (Applause.)  And this quarter, I believe, would have been better, but the hurricanes will have an impact.  But other than that, it would have been, in my opinion, even better.
Your government is working for you once again, not for the donors, not the special interests, but the hardworking taxpaying citizens of our country.  (Applause.)
America is back on the right track.  And I see so many red hats -- Make America Great Again.  That's what we're doing -- Make America Great Again.  (Applause.)  But our country and our economy cannot take off like they should unless we dramatically reform America’s outdated, complex, and extremely burdensome tax code.  It's a relic.  We've got to change it.  We have to compete -- compete with other countries.
The current tax system is a colossal barrier standing in the way of America’s economic comeback because it can be far greater than it's ever been.  But we're going to remove that barrier to create the tax system our people finally, finally, finally -- and want and deserve.
For several months, my administration has been working closely with Congress to develop a framework for tax reform.  Over the next few months, the House and Senate will build on this framework and produce legislation that will deliver more jobs, higher pay, and lower taxes for middle-class families -- for the working man and woman -- and for businesses of all sizes.  I look forward -- (Applause.)  Thank you.
I look forward to working with Congress to deliver these historic tax cuts and reforms to the American people.  These tax cuts are significant.  There's never been tax cuts like what we're talking about.
Our framework is based on four key ideas:  First, we will cut taxes for the everyday, hardworking Americans -- the people that work so long, so hard, and they've been forgotten.  But they're not forgotten anymore.  I think we proved that on November 8th.  (Applause.)
Under this framework, the first $12,000 of income earned by a single individual will be tax free, -- (applause) -- and a married couple won’t pay a dime in taxes on their first $24,000 of income.  So, a married couple -- up to $24,000 -- can spend their money on their family, on their children, on what they have to do.  So much better.
In other words, more income for more people will be taxed at a rate of zero.  (Applause.)  At this zero percent rate, taxable income will be subject to just three tax rates of 12 percent, 25 percent, and 35 percent.
Jonathan Blanton and his wife Jamie from Greentown are here with us today.  Where are they?  Oh, hello, Jonathan.  How are you?  (Applause.)
Jonathan does industrial janitorial work and Jamie works at an auto company.  Together they're raising four beautiful children, and last year they earned less than $90,000.  Under our tax plan they would have saved more than $1,000, and it could be substantially more.  And that's just on federal taxes.  So they would have saved at least $1,000.
Middle-income families will save even more money with an increased child tax credit for children under the age of 17, which so many families have been calling for.  (Applause.)
We will eliminate the marriage penalty in the existing credit and expand eligibility to include even more middle-income families.  Greatly expanded.
We're also expanding the child tax credit because we believe the most important investment our country can make is in our children.  (Applause.)  And this is just one more critical way that we're targeting relief to working families.
In addition, under our framework, those caring for the elderly loved -- and we love these people, but we're caring, and we take such care of the elderly and other adult dependents -- will receive financial relief in the form of a $500 tax credit.  (Applause.)
We’re doing everything we can to reduce the tax burden on you and your family.  By eliminating tax breaks and loopholes, we will ensure that the benefits are focused on the middle class, the working men and women, not the highest-income earners.  (Applause.)
Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected.  They can call me all they want.  It’s not going to help.  I’m doing the right thing, and it’s not good for me.  Believe me.  (Applause.)
But what is good for me -- not only as President and legacy -- what is good for me is if everything takes off like a rocket ship, like it should have for 20 years.  That's good for me.  That's good for everyone.  (Applause.)  And that's what I think is going to happen.  (Applause.)  And a lot of very wealthy people feel the same way, believe me.
In fact, we are eliminating most itemized deductions that primarily benefit the wealthiest taxpayers.  We've also given Congress the flexibility to add an additional top rate on the very highest income earners to provide even more tax relief for working people.
Second, our framework will make the tax code simple, fair, and easy to understand, finally.  (Applause.)
Americans waste money.  Americans waste so much money -- billions and billions of dollars and many hours each year to comply with our ridiculously complex tax code.  More than 90 percent of Americans use assistance to prepare their taxes.  Under our framework, the vast majority of families will be able to file their taxes on a single sheet of paper.  (Applause.)
We are also repealing the alternative minimum tax, or AMT.  About time.  (Applause.)
The AMT is actually a shadow tax system that requires many people to calculate their taxes two different ways and pay the higher of the two amounts.  You're all familiar with it.  Under our framework, the AMT will make even less sense because we are repealing many of the special interest tax breaks that it was designed to deal with.  We are making our taxes simple again.  We are simplifying our tax system.
To protect millions of small businesses and the American farmer, we are finally ending the crushing, the horrible, the unfair estate tax, or as it is often referred to, the death tax.  (Applause.)
That means, especially for all of you with small businesses that are really tremendous businesses, you’ll be able to leave them to your family, and your family won’t have to run out and do a fire sale to try and get the money to pay the tax -- lose the business, ends up going out of business.  All of those jobs are lost.  The farmers in particular are affected.  They have wonderful farms, but they can't pay the tax, so they have to sell the farm.  The people that buy it don't run it with love.  They can't run it the same way, and it goes out.  So that death tax is a disaster for this country and a disaster for so many small businesses and farmers.  And we're getting rid of it.  (Applause.)
Now if you don't like your family, it won’t matter, okay?  (Laughter.)  But for those that love your family, it matters a lot.  (Laughter.)  
With us today is Kip Tom, a family farmer from Leesburg -- Where's Kip?  Go ahead, Kip.  Hi, Kip -- (applause) -- who fears that his family’s farming heritage -- it’s been a long time.  How long, Kip?  A hundred and eighty-seven years -- that's peanuts, Kip.  (Applause.)  Wow.  That's a long time.  But that great heritage could come to an end because of the death tax, or the estate tax, and could make it impossible for him to pass that legacy to his wonderful family.  We’re not going to let that happen.
We are not going to allow the death tax to steal away the American Dream from these great, great families, many of which are in this room today.  (Applause.)
We will protect our farmers, our ranchers, and our small businesses, and we will make taxes simple, easy, and fair for all Americans.  Okay?  (Applause.)
Third, we will cut taxes on American businesses to restore our competitive edge and create more jobs and higher wages for American workers.  (Applause.)
In Indiana, you have seen firsthand that cutting taxes on businesses makes your state more competitive and leads to more jobs and higher paychecks for your workers.  Now, we want to do the same thing for America, making our country more competitive with other nations.  And in many cases, those other nations are taking advantage of us in so many ways.  They say they're friends, and perhaps they are, but believe me, I am renegotiating our trade deals, including NAFTA, including many other trade deals.  (Applause.)
And through regulation, all you have to do is look at the massive pipelines -- Dakota Access.  You take a look, 48,000 jobs immediately approved.  So we're letting that happen.
But in terms of the tax and the tax strategy that Ronald Reagan used to create an economic boom in the 1980s:  When our economy took off, the middle class thrived, and the family income of all families was increasing more and more.  And it was a beautiful sight to behold.
Since then, other nations have adopted, unfortunately, our playbook and ran it even better than we did.  And I shouldn't say even better because we didn't run it well at all, and we let other nations come in and take advantage of us and take our jobs away and take our businesses out.  And we're stopping that, and you see it right here what we've done.
Today, our total business tax rate is 60 percent higher than our average foreign competitor in the developed world.  That's not good.  We have surrendered our competitive edge to other countries, but we're not surrendering anymore.  We're not surrendering anymore.
Under our framework, we will dramatically cut the business tax rate so that American companies and American workers can beat our foreign competitors and start winning again.  (Applause.)  We will reduce the corporate tax rate to no higher than 20 percent.  That's way down from 35 and 39 -- (applause) -- which is substantially below the average of other industrialized nations.
This is a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor, and as wages start going up at levels that you haven't seen in many years.  (Applause.)
When our companies move to other countries, it’s our loyal American workers who get hurt.  And when companies stay in America, and come to America, it’s our wonderful workers who reap the rewards.
And I just left the United Nations last week, and I was told by one of the most powerful leaders of the world that they're going to be announcing, in the not-too-distant future, five major factories in the United States -- between increasing and new -- five.  (Applause.)  You'll be hearing about that very soon.
And I said thank you very much, and he said, "you know what?  It's starting to happen in the United States.  It's starting to happen."  So I just wanted to let you know that.  I promised I wouldn't say who.  I'll keep my word.  Okay?  (Laughter.)  Unless you force me.  (Laughter.)
THE PRESIDENT:  Members of both parties -- it happens to be in the automobile industry.  That's a good industry.  (Laughter.)  Members of both parties should agree that we need a tax code that keeps jobs in our country and brings jobs back to our country.  (Applause.)
And for the millions of small businesses and farms that file their taxes as sole proprietors, S corporations or partnerships, we will cap the tax rate they pay at 25 percent -- much lower.  Big difference.  (Applause.)  This will be the lowest top marginal income tax rate for small and mid-size businesses in this country in more than 80 years.  (Applause.)
To give businesses even more reason to boost their investment in America, for the next five years, our framework will allow to fully write off -- listen to this -- the cost of equipment in the year they buy it.  That is big.  (Applause.)  And that's instead of having to take deductions and deduct the cost over a long period of time.  Now that's called incentive.  That's called incentive.  (Applause.)  This will be tremendously important to help American businesses afford the heavy industrial machinery and other capital investments they need to grow big and grow strong.
Joining us today is John Gannon, the owner of a custom wood fencing and deck construction company in Indianapolis.  John is the father of nine children, and recently celebrated his 35th wedding anniversary.  Congratulations, John.  (Applause.)
And John is in the fencing company, as you heard, and I'm just thinking -- I have to mention this -- you know, we have a fence around the White House.  (Laughter.)  We have a fence around the White House, and they want to build a new fence.  And I figured, you know -- I'm pretty good at construction -- I figured, I don't know, maybe a million, maybe a million-and-a-half.  And this has been taking place over a long period of time -- previous administrations.
So I said, "how much is the fence you're talking around the White House?"  "Sir, the fence will cost approximately $50 million."  I said, "What?"  (Laughter.)  I kid you not, and we have thousands of things like that.  Thousands.  We're going to get it all down, but think of that:  $50 million.  Now, I assume it's a strong fence.  (Laughter.)  Okay?  So, John, do you think you could do it for slightly less than $50 million?  I think he could take $49 off right now and he'd have plenty of profit.  Right?  Right, John?  It's crazy.  (Applause.)  It's crazy.  Never understand it, but we’re working on it. 
John says that a tax cut like we're proposing will make his business more competitive, allowing him to expand, hire more workers, and raise wages for his current employees.  Right, John?
Also with us is Aaron Williams, a father of two who works in the field of information technology.  Where's Aaron?  Hello, Aaron.  Hi.  (Applause.)  It's a good field.
Aaron has seen the disastrous effects of high -- and just literally, high corporate tax rates right up close and personal, as more and more high-tech jobs are shipped overseas.  You've been watching it, Aaron.  Right?  All over.  Like millions of other Americans, Aaron wants to bring those jobs back to the United States.
We're going to reduce the tax rate on American businesses so they can keep jobs in America, Aaron; create jobs in America; compete for workers in America; and raise wages right here in America.  You're going to be in a much different position.  Okay?  (Applause.)  Thank you.  Tremendous incentives.
We want more products proudly stamped with those four beautiful words:  Made in the USA.  Right?  (Applause.)  Made in the USA.
Finally, our framework encourages American companies to bring back the trillions and trillions of dollars in wealth that's parked overseas.  Our current tax system -- (applause) -- trillions.  And by the way, for years I've been hearing it's 2.5 trillion.  So I've been hearing this for about five years, so I assume it's much more.  Right?  But Democrats want to do it, and Republicans want to do it.  For years -- who doesn't want to do it?  They want to bring -- but they can't do it because it's so restrictive, and the taxes are so ridiculous.  So they can't do it.  So the money stays in other countries, and it's invested in other countries.  We want to bring it back.
     But think of it, it’s one of the few things -- Democrats want it and Republicans want it.  So they both want it, and yet for years they haven’t been able to do it.  Now we're doing it.  We're doing things.  (Applause.)
     You know, it’s one thing when we want a healthcare and they want a healthcare, and there’s a dispute.  But here’s something everybody wants and they can't do it.  So you can tell you, there’s a broken system in D.C., but we're getting it fixed rather -- I think -- rather rapidly.  You’ll be seeing that over the next few months.
     Our current tax system makes us one of the few developed nations in the world to punish our companies when they bring wealth earned overseas back into our country.  We're punishing them for bringing the money back in.
As a result, corporations have parked many trillions of dollars in foreign countries, and many have incorporated abroad in order to avoid our punitive tax system altogether.  And some companies actually leave our country because they have so much money overseas -- so much, it’s an incredible amount -- that they move the company to get their money.  We're going to let them bring the money back home.  (Applause.)
Our framework will stop punishing companies for keeping their headquarters in the United States.  We're punishing companies under our codes for being in the United States.  We will impose a one-time low tax on returning money that is already offshore so that it can be brought back home to America where it belongs and where it can be put to work and work and work.  (Applause.)
The framework I’ve just described represents a once-in-a-generation opportunity to reduce taxes, rebuild our economy, and restore America's competitive edge.  Finally.  (Applause.)
And I have to say, just before coming here we released some of the details of the tax and the tax reform and the tax cuts, and it has really received tremendous, tremendous reviews.  And if Senator Donnelly doesn't approve it, because you know he’s on the other side, we will come here.  We will campaign against him like you wouldn’t believe.  (Applause.)  I think they're going to approve it.  I think we’ll have -- actually, I think we’ll have numerous Democrats come across because it’s the right thing to do.
These reforms will be a dramatic change from a failed tax system that encourages American businesses to ship jobs to foreign countries that have much lower tax rates.  It’s what we can't do.  Our competitors have much lower tax rates.  But no longer.  My administration strongly rejects this offshoring model, and we have embraced the new model.  It’s called -- the American model.  (Applause.)
Under the American model, we are reducing burdens on our businesses as long as they do business in our country.  That's what we want.  We want them to do business in our country, not to leave our country like a number of firms from Indiana.  Some made some great promises to me, but those promises are only being partially kept because they're incentivized to leave.  But now they're going to be incentivized to stay.  And if that doesn't work, then we’ll get even tougher than that.  Okay?
We want our companies to hire and grow in America and to raise wages for American workers, and to help rebuild American cities and towns.  (Applause.)
That is how we will all succeed together and grow together as one team, one people, and one American family.  We want it to happen here.  (Applause.)
Tax reform has not historically been a partisan issue, and it does not have to be a partisan issue today.  I really believe we're going to have numerous Democrats come over and sign because it's the right thing to do.  I believe that it's the right thing to do, and I know many of them.  And they're telling me it is the right thing to do.  President Reagan’s tax cuts were passed with significant bipartisan majorities at a time when there was a Democrat majority in the House and a Democrat Speaker -- Tip O'Neill.
Before that, Democrat President John F. Kennedy championed tax cuts that surged the economy and massively reduced unemployment.   As President Kennedy very wisely said, “The single most important fiscal weapon available to strengthen the national economy is the federal tax policy.  The right kind of tax cut at the right time" -- at the right time, this is the right time -- "is the most effective measure that this government could take to spur our economy forward.”  That was President Kennedy.  (Applause.)
My fellow Americans, this is the right tax cut, and this is the right time.  Democrats and Republicans in Congress should come together, finally, to deliver this giant win for the American people and begin middle-class miracle -- it's called a middle-class miracle, once again.  It's also called a miracle for our great companies; a miracle for the middle class, for the working person.
I truly believe that many Democrats want to support our plan, and with enough encouragement from the American people, they will find the courage to do what is right for our great country.  (Applause.)  But they'll only do it if you, the American people, make your voices heard.  Only if you tell Congress to give us a tax code that puts American jobs first.  And that's what we're doing.  (Applause.)
History has proven time and time again that there is no power on Earth more awesome than the will of the American people.  That is why today I am asking all Americans -- Republican, Democrat, independent -- to join with me, and with each other to demand tax reform that will truly, truly, truly make America great again.  (Applause.)
Call your congressmen.  Call your senators.  Let them know you're watching.  Let them know you're waiting.  Tell them that today is the day for decision.  That now is the time to heal this self-inflicted economic wound.  And that with their action, the future will belong to all of us.
If you demand it, the politicians will listen.  They will answer, and they will act.  And someday, many years from now, our children and our grandchildren will remember this moment in history as the time when ordinary Americans took control of their destiny and chose a future of American patriotism, prosperity, and pride.  (Applause.)
With your help and your voice, we will bring back our jobs, we will bring back our wealth, and for every citizen across this land, we will bring back our great American dreams.
Thank you, God bless you, and God bless the United States of America.  (Applause.)
                         END                4:13 P.M. EDT

Republican National Committee

Talking Points on The Unified Framework for Fixing Our Broken Tax Code

Today, President Trump visited Indiana to discuss new details of his Republican tax plan.
To view their Unified Framework for Fixing Our Broken Tax Code in full, click here. A one-pager featuring highlights of the plan is available here.

As President Trump has said before, his main objective is to give American workers the level playing field they deserve. If the fight is fair, no one on earth can beat the American worker. President Trump is the most pro-taxpayer and pro-jobs President in decades. Under his leadership, we can and will unleash the true potential of American business.

Please see below for additional details on the President’s plan for tax reform.

The President’s tax reform plan is focused on three main goals:
  • Providing relief for hardworking, middle-class families
  • Restoring our competitive edge and creating more jobs and higher wages
  • Encouraging investment here at home
Objective #1: Relief for the Middle Class:

  • President Trump is proving to be the most taxpayer friendly President in decades.
  • At the heart of this plan is a fairer, simpler, less burdensome tax code that allows more hardworking Americans to keep more of their hard-earned money.
  • It accomplishes that through the following:
  • Creating a larger zero tax bracket by roughly doubling the standard deduction
  • Compressing the seven tax brackets we have today down to three of 12%, 25% and 35%
  • Expanding the Child Tax Credit and creating a tax credit for non-child dependents
  • Eliminating special tax breaks that primarily help the wealthy
  • Repealing personal exemptions, most itemized deductions, and other special interest tax breaks
  • The plan retains incentives for home mortgage interest, charitable giving, retirement, education, and work.
  • Ending the Death Tax that has hurt so many family-owned small businesses, farms and ranches
  • With these changes, most Americans will be able to file their tax return on a single page and they will no longer have to dread the endless paperwork or need to track receipts.
  • The government already taxes the American people enough – they should not also have to invest hours of their time to sort through a complicated and burdensome tax code.
Objective #2: Restore Our Competitive Edge, Create Jobs and Grow Wages

  • American businesses are also bogged down by exorbitant tax rates that get in the way of creating more jobs and offering higher wages.
  • When higher taxes are placed on American businesses, American workers are hit hardest.
              • Corporations currently face a 35% tax rate – the highest among developed economies.
  • President Trump will slash that rate to no higher than 20%.
  • This plan will also cap the top tax rate for small businesses at 25% to make sure they have a fair and equal chance to grow and thrive in America.
  • While lowering the corporate tax rate is a top priority, this plan does eliminate special interest tax breaks for big companies to level the playing field here at home.
  • Notably, this plan empowers entrepreneurs to invest in and grow their businesses by allowing them to deduct 100% of the money they spend on capital investments for at least the next five years.
  • If we want strong businesses to invest in the American economy, we need to empower them to make the best business decisions they can make.
Objective #3: Encourage Investment Here At Home

  • The current federal tax policy does not encourage American businesses to invest and grow roots here in their home country.
  • Too many companies are moving overseas, where incentives to invest are higher.
  • President Trump aims to bring them home.
  • The “Offshoring Model” has harmed our workers, families and the American economy.
  • Our “American Model” will encourage our companies to do business here at home. It will usher in a new era of real investment in America.
  • Companies will no longer be penalized when they bring profits back home.
  • Foreign profits already accumulated overseas will face a low, one-time tax.
Tax reform will usher in a new era of American business, and the biggest winners will be American workers who will see expanded opportunities, higher wages, and lower individual tax rates.



Speaker of the House Paul Ryan (R-WI): “Today, we move one step closer to fixing our broken tax code so that it puts Americans first. This is our best opportunity in a generation to deliver real middle-class tax relief, create jobs here at home, and fuel unprecedented economic growth. It has been 31 years since we last got this done, and hardworking families and small businesses cannot afford to wait any longer. Under President Trump’s leadership, we are determined to finally give the American people the simpler, fairer, and more competitive tax system they deserve.”
Senate Majority Leader Mitch McConnell: “Later today, I look forward to joining members of the Senate Finance Committee, the House Ways & Means Committee, and other congressional leaders in unveiling a unified framework for fixing our nation’s broken tax code. It’s an idea that can bring much-needed relief to middle-class families and small businesses and help keep more jobs in America. It's the result of a lot of hard work and input from Members, Committees, staffs, and the administration, to name a few -- I thank them again for their continued diligence on behalf of our country. This framework is focused on supporting American jobs, on making taxes fairer and on growing families’ paychecks.”
Senate Finance Committee Chairman Orrin Hatch (R-UT): “For too long, Americans have been bogged down by an outdated tax code that runs counter to the goal of growth and fails to promote jobs and investment here at home… Principals in the Senate, House, and administration recognized this challenge and worked with members to find consensus and produce a unified framework that marks a significant shift away from America's broken tax system… Our unified framework will launch a robust legislative process and serve as a critical roadmap for the tax-writing committees, as we draft legislation for a tax overhaul that embraces Republicans’ shared vision. We are committed to creating a healthier American economy that will produce more jobs, bigger paychecks and a fairer, more predictable system for taxpayers across the country. The challenge before us is clear. The Senate Finance Committee is ready to roll up its sleeves and get to work.”
House Ways And Means Committee Chairman Kevin Brady: “This is an exciting day for the millions of Americans who are tired of today’s broken tax code and have waited for years for better job opportunities, more take-home pay, and a stronger economy. Today, House Republicans joined President Trump and our Senate colleagues in letting the American people know: we’re taking action. After years of work, we are moving forward with a unified framework that paves the way for bold, transformational tax reform – tax reform that will bring more jobs, fairer taxes, and bigger paychecks. We have a lot of work ahead. But this moment marks a major step forward in the process. Now it’s time for the Ways and Means Committee to build on this momentum and deliver legislation that President Trump can ultimately sign into law. We are closer than ever to finishing what we have started for the American people – and 2017 is our year to make it happen.”
Senate Majority Whip John Cornyn (R-TX): “This plan lays the foundation for a simpler tax code that will enable Texans to keep more of what they earn and help create jobs here at home.  As Congress continues to work on reforming our antiquated tax code, working families and small businesses in Texas are my top priority.  I look forward to working with my colleagues and the President to enact reforms that spur economic growth and put money back in the pockets of hardworking Texans.”
Senator John Thune (R-SD): “The Obama era brought higher taxes, more regulations, and a stagnant economy. Congress now has the opportunity to implement pro-growth tax reform policies and provide relief to working families. The administration together with Speaker Ryan, Leader McConnell, and leaders of the Senate Finance Committee and the House Ways and Means Committee have produced a framework that gives us the ability to do just that. Working Americans across the country are living paycheck to paycheck. We must deliver on tax reform policies that will lead to more jobs, fairer taxes, and bigger paychecks. I look forward to working with President Trump, leaders in both chambers of Congress, and my fellow members of the Finance Committee to ensure our reforms make it to the president’s desk for his signature.”
Senator Roger Wicker (R-MS): “One of my top priorities is to help President Trump reform our country’s broken tax code and ensure that Mississippi families keep more of what they earn…This particular proposal has the potential to make the economy roar, help job creators, spur innovation, and renew the spirit of the American Dream. This is a watershed moment that we cannot afford to miss.”
House Majority Leader Kevin McCarthy (R-CA): “Tax reform is our country’s greatest opportunity to make America stronger and give people the opportunity for better lives. Today’s code is broken. It was designed in a different time and for decades it has grown to benefit special interests at the expense of hardworking taxpayers who simply don’t have an army of tax lawyers. This unified framework answers the call from the American people for a fairer and simpler tax code that will create jobs. It will also propel American innovation and business to new heights in the 21st century. With President Trump and the Republican Congress we will rise to this moment and deliver tax reform for a stronger America.”
Rep. Mike Bishop (R-MI): “Today, we’re moving the ball forward on tax reform. The American people have not seen bold, transformational tax reform in 31 years – and our Congress and Administration are doing something about it. Our framework outlines the ways we can create jobs here in the United States and bring more back from overseas. Middle-income families can expect much-needed tax relief and bigger paychecks. It will be simple enough for nine out of 10 Americans to file their taxes on a postcard. Job creators of all sizes, especially small businesses, will get relief and have more certainty so they can plan ahead and grow our economy. This is tax reform done right.”
House Budget Committee Chairman Diane Black (R-TN): “As a unified government, we worked with President Trump and the Senate to craft a framework benefitting every income level, especially the middle class. Our reform also delivers the lowest tax rates in modern history for businesses so job creators can provide bigger paychecks to their employees and incentivize hard work. By simplifying the system and getting the government out of the way of our free-market economy, America is made more competitive on an international scale and the potential for unprecedented job creation is unleashed. We believe this will be a catalyst for more jobs, bigger paychecks and fairer taxes – this framework is pro-America. Plain and simple.”
Rep. Ken Calvert (R-CA): “The tax reform framework announced today is an important step towards making America’s tax code fairer, simpler and more competitive…We need a tax code that works for the middle-class and for our job creators. By putting America first we can create more economic opportunities that will benefit hard-working families throughout our country.”
House Small Business Committee Chairman Steve Chabot (R-OH): “Today, we took a positive step toward fixing our broken tax code and helping provide relief to the tens of millions of small businesses across our country who continue to be held back by a broken system. Small businesses deserved a voice in the largest tax reform in 31 years and today they were heard. This unified plan will provide small business owners, their families, and their employees with a simpler and fairer tax code that will help their bottom lines, and also grow our economy.”
Rep. Warren Davidson (R-OH): “Hardworking Ohio families deserve a simple tax system and more take home pay. In the coming weeks, I’ll be working with my colleagues in Congress to make sure the bold, pro-growth and pro-family reforms that this framework proposes are put in place and that a final bill arrives on President Trump’s desk as soon as possible.”
Rep. Ron Estes (R-KS): “Real tax reform is needed to keep America competitive in a global marketplace. Economic growth from reforming our antiquated tax system will bring higher wages, and better jobs for working families in Kansas. It’s time to fix America’s complex and outdated tax code so that Kansas families have more money in their pocket to save for retirement or plan for college. I look forward to acting on this framework and working with the Ways and Means Committee to put more money back in the hands of hard-working Kansans.”
Rep. Tom Graves (R-GA): “This framework turns the page on our complicated and broken tax system. It’s simpler, flatter and fairer than the current tax code. It will put more money in the pockets of hard-working Americans. It also promotes economic growth and private-sector job creation by slashing the corporate tax rate – currently the highest in the developed world – and ensuring fair treatment for small businesses. Congress needs to get the final product to the president’s desk as quickly as possible.”
Rep. Gregg Harper (R-MS): “Today, with the help of the President, Congress has taken a huge step towards fixing our country’s broken tax code and bringing real reform to middle-class families, small businesses, and Mississippi’s family farms who cannot afford to keep the current system any longer. This plan is aimed at delivering a simpler, fairer tax system that will create jobs, grow our economy, and deliver much-needed relief to the hardworking men and women who are hurting under the burdensome tax code.”
Rep. Jody Hice (R-GA): “I really like what I’m seeing so far with the tax reform framework. This bold, new proposal is just the first step toward creating a system that is both competitive and fair. I’m pleased that it will empower Americans to take home more of their hard-earned paychecks and enable businesses of all sizes to grow and thrive. We're moving in the right direction, and I'm proud to be a part of this long overdue reform effort. As the tax-writing committees continue to flesh out the specific legislation, I look forward to being a partner in the discussion so we can send a final bill to President Trump’s desk as soon as possible.”
Rep. Lynn Jenkins (R-KS): “This framework will serve as an outline as Congress takes an important step to reform our broken tax code and replace it with a simpler and fairer code. One that lowers rates for individuals and families so they save time and money doing their taxes and keep more of their hard-earned money. A tax code that helps jumpstart our economy and creates more opportunities for all Americans.”
Rep. Sam Johnson (R-TX): “America’s current tax code is complicated and broken, and right now we have an opportunity to fundamentally reform it for the 21st Century. Not only does Washington have a much-needed chance to make the code simpler – which I strongly believe is necessary, but it’s an opportunity to enable businesses so they are better able to compete in the global economy. Even more important, tax reform should reward hardworking American families. This blueprint is a first step. We must get tax reform right, and I look forward to working with my fellow Ways and Means colleagues on behalf of America’s taxpayers.”
Rep. Mike Kelly (R-PA): “Today is a day to celebrate. With this framework, pro-growth tax reform is no longer just a lofty ambition but a concrete plan that is closer to realization than at any point in over three decades. This is a total win for America in every measurable way. For hardworking families and individuals, this means more take-home pay. For American companies, it means no longer having to pay the world’s highest tax rate but, instead, being able to create new jobs, increase wages, and compete globally on a level playing field. For everyone, it means a much stronger American economy supported by a fairer, simpler, more understandable tax code. This is an economic growth plan. This is a jobs plan. This is a relief plan for hardworking Americans who are tired of forfeiting too much of their hard-earned paycheck to the government. The foundation of this framework is the mandate delivered loudly by the American people last year.”
Rep. Roger Marshall (R-KS): “This fairer, simpler system will be a huge relief for the working and middle class. Gone are the days of a 75,000-page tax code full of favors and loopholes for the most powerful, wealthy and well-connected. This reform is overdue, and why many of my colleagues and I came to this body - to bring real-world, commonsense reform for our generation, for our kids, and for our grandkids.”
Rep. Patrick McHenry (R-NC): “Our tax code is broken. It hurts America’s families and small businesses and strangles economic growth. The unified framework released today changes this. It provides relief to middle-class American families, simplifying the tax filing process and reducing rates so they can keep more of their hard-earned money. Our plan will help spur the economy and create good-paying jobs by lessening the burden on our small businesses. Today’s announcement is an important first step in a long overdue process. In the weeks ahead, I look forward to working with my colleagues and President Trump on this important effort.”
Rep. Paul Mitchell (R-MI): “As I have said repeatedly throughout this process, we need a tax reform plan that focuses on delivering relief to those who need it most – the middle class.  The framework released today would double the standard deduction so that families and individuals can keep more of their hard-earned dollars, simplify the code into three tax brackets, and eliminate unfair taxes like the ‘Death tax’ that place an undue burden on farmers and family owned businesses. The American people asked for tax relief; it’s time for both parties and both chambers of Congress to come together to deliver.  I look forward to working with my colleagues in the House and Senate, and with President Trump, to turn today’s framework into legislation that will put American workers and families first.”
Rep. Dave Reichert (R-WA): “The framework outlines a plan that provides tax relief and a simplified code to middle-class families, making Americans’ day to day life more affordable so individuals and families can focus on the things that matter. And it sets out a path for significant economic growth, by lowering tax rates for American businesses and encouraging investment here at home. America’s outdated tax code has weighed down American workers and businesses as our foreign competitors move forward. We simply must have a tax code that supports the creation of good-paying jobs in America. This is a once in a generation opportunity that will improve the lives of American families for generations to come. I look forward to working with the Administration and my colleagues on both sides of the aisle over the coming months on a tax plan that will give Americans a raise, help our businesses compete, and simplify the tax code.”
House Veterans’ Affairs Committee Chairman Phil Roe (R-TN): “The framework released today is a down payment on our promise to create jobs and grow our economy. By simplifying the way taxes are collected through consolidated brackets, repealing the Death Tax, and eliminating loopholes primarily used by the wealthy, middle-class Americans will be able to keep more of the money they earn and in turn provide for their families. I look forward to working with the Trump administration and my colleagues in Congress to keep our promise to deliver long-awaited tax relief that will greatly benefit East Tennesseans.”
Rep. Pat Tiberi (R-OH): “This is a framework for tax reform that will help all Americans, especially those who have felt left behind in the slow and uneven economic recovery of the past decade. We will simplify the code, make it easier for everyone to file their taxes, and allow middle-income Americans to keep more of their paychecks so they have the confidence and ability to save, plan for the future and get ahead.”
Rep. Fred Upton (R-MI): “Our framework will deliver tax relief for middle-class families, allow workers to take home more money, and put American businesses in a better competitive position – keeping jobs here at home. Americans need tax relief and reform now more than ever. As I’ve spoken to countless folks and businesses, small and large, here in Southwest Michigan all agree that our tax code is too unwieldy, too costly, and too complicated. It’s time to change that so we can unleash American competitiveness and ingenuity which will create more good-paying jobs and economic benefits right here. I’m confident we can deliver this year. I look forward to working with my colleagues here in the House and Senate and with the administration to deliver results for families and businesses in Michigan and across the country.”
Rep. Tim Walberg (R-MI): “The framework released today begins the process of simplifying the tax code and allowing hard-working, middle class families in Michigan to keep more of what they earn. These reforms will increase take-home pay, boost job creation, and enable a more competitive and healthy economy. Meaningful tax reform is the key to growing good-paying jobs and opportunity for all American workers and manufacturers. I look forward to working with all my colleagues in Congress and the Trump administration to get the job done.”
Rep. Jackie Walorski (R-IN): “This framework gives tax relief to middle-class families and simplifies the tax code so they can file their taxes on a postcard. It lowers tax rates on small businesses, helps manufacturers build more American-made products, and makes America more competitive in the global economy. And it puts American workers on a level playing field by ending the incentive for companies to send jobs and capital overseas. We have a once-in-a-generation opportunity to put American families, workers, farmers, small business owners, and manufacturers on a stronger path, and I look forward to working with my colleagues on the Ways and Means Committee in the coming weeks to get a bill ready for the president’s signature.”
Treasury Secretary Steven T. Mnuchin: “Today President Donald J. Trump shared how middle-income families will win when we cut their taxes, and make American businesses competitive again.  The President outlined a framework with Congress that will create a simpler and fairer tax code that fuels job creation, higher wages, and economic growth, and will lead to the lowest marginal income tax rate for small and mid-size businesses in more than 80 years.  Indiana is a great example of how tax relief and reforms like these can lead to record-high employment, more investment in education and innovation, and more manufacturing right here in America.  Democrats and Republicans have a historic opportunity to work together to pass meaningful legislation that, as the President stated, will begin the ‘Middle Class Miracle.’  With the President’s leadership, we will create a level playing field so that American businesses and workers will be in a position to succeed in our global economy.”
Agriculture Secretary Sonny Perdue: “The people of American agriculture work hard every day to provide food, fiber, and fuel for their fellow citizens, so they shouldn’t be overburdened by the tax collector as well. Most family farms operate as small businesses, with the line between success and failure frequently being razor thin. Add to that the complexity and costs of merely complying with the tax code, and their budgets are stretched even tighter. On top of it all, the unfair ‘Death Tax’ can cause too many family farms to be broken up and sold off to pay the tax bill, undoing lifetimes of toil and preventing further generations from carrying on. President Trump is right to push for reform and reductions in the tax code—an overhaul that is long overdue.”
Labor Secretary Alex Acosta: “President Donald J. Trump’s tax reform framework is great news for Americans and American job creators. This plan will create a simpler and fairer tax system. American families will keep more of their hard-earned pay, and job creators will have more resources to invest in the American workforce. This plan promotes job creation in the United States. We are going to see investment return home, fueling new job growth across all industries. It is critical that we unleash the full potential of the world’s greatest workforce: the American workforce.”
Administrator Of The Small Business Administration Linda McMahon: “I built a business from the ground up, so I know first-hand how challenging the current tax code is for entrepreneurs.  One of the first things I hear from the business owners I’ve met in my travels around the country is the urgent need for tax reform.  They want to see lower rates and a simpler tax code to level the playing field.   President Donald J. Trump’s proposed framework eliminates special interest tax breaks that benefit the wealthy and lowers the corporate tax rate, restoring our competitive edge and boosting our economy, which is always good for small business.  It also caps the top rate for businesses that operate as pass-through entities (S-Corporations and LLCs).  This is reform that will be welcomed by small business owners!”
Americans for Tax Reform President Grover Norquist: “The Republican tax reform plan will turbo-charge the economy, create millions of new jobs and make America the best place in the world to invest, build and create.”
Americans for Prosperity Chief Government Affairs Officer Brent Gardner: “This is a strong framework for the kind of bold, pro-growth reform we’ve been working to support all year.  If Congress can translate policy like this into legislation, we can expect a renaissance for the U.S. economy, job growth and production to follow. This plan will improve lives by allowing Americans to keep more money in their paychecks and ensuring the United States is the best place in the world to do business.”
Club for Growth President David McIntosh: “Club for Growth is very encouraged and pleased with the long-awaited tax reform outline that the Big Six released today…. The outline is both aggressive and very pro-growth with its rate reductions. Club for Growth congratulates the members of the Big Six for their hard work and will continue to support the pro-growth efforts of the Trump administration and Congress as they seek to make tax reform a reality.”
Freedom Partners Vice President of Policy Nathan Nascimento: “This framework is a giant step for a stronger economy, and more jobs and higher wages for the American people. Making it a reality would let taxpayers keep more of their hard-earned money, increase America’s global competitiveness, and send a message that there will be no better place in the world to invest and create jobs than the United States. We look forward to continue working with Congress and the administration to rally support for tax reform and unite all Americans behind the kind of positive vision announced today. Americans have been promised a simple, fairer tax code that unrigs the economy and puts taxpayers ahead of special interests. It’s time to deliver on that promise.”
FreedomWorks President Adam Brandon: “The framework released today represents a transformation of America’s tax code and would help the middle class. It simplifies a complex system that taxpayers spend billions annually to comply with and will spur economic growth, allowing American businesses to increase wages and create more jobs.”
American Action Network Executive Director Corey Bliss: “The White House and congressional leaders have unveiled a unified and bold plan to move forward on pro-growth tax reform that puts middle-class families and job creators first. With too many hardworking Americans living paycheck to paycheck and small businesses struggling to keep up with foreign competition, it’s clear the status quo has failed. Congress has the opportunity to make things right and deliver a tax code that is simple, fair and lowers rates for working families and small businesses.”
60 Plus Founder and Chairman James Martin: “There’s a lot for seniors to like in President Trump’s framework for tax reform. After reviewing the President’s plan, I believe the net effect can be summed up in four words - promises made, promises kept. It abolishes the Death Tax as he promised, safeguarding family farms, ranches and small businesses. It simplifies the tax code by reducing to three the number of marginal tax brackets, and caps the maximum tax rate for family owned businesses. In addition to that, the doubling of the standard deduction will be a huge boon to low-income retirees and those who no longer itemize their deductions because they have sold their homes and moved to retirement communities. President Trump’s plan to set the corporate tax rate to 20 percent and a one-time low rate for bringing home their overseas profits will go a long way toward creating new jobs and providing greater economic growth in communities across America, all while making the United States more competitive in the global economy. This tax reform package is true to President Trump’s promises to the American people and we look forward to educating our millions of 60-Plus members on its virtues and benefits for them, their families and our nation.”
Citizens Against Government Waste President Tom Schatz: “The ‘Big Six’ tax reform plan is a historic opportunity to unleash the economic potential of the American people.  If the plan is enacted, Americans will get to keep more of their own money, filing taxes will be far simpler, and small businesses will boost wages and create jobs.”
National Taxpayers Union President Pete Sepp: “For overburdened taxpayers, the wait is over – Congress and the President are not only reading from the same book on tax reform, they’re now getting on the same page. The core tax reform principles they’ve outlined in today’s framework can deliver on relief for middle-class families and individuals, a simpler filing process, a fairer system that allows all businesses to create more jobs, and ultimately a prosperous economy…. In short, we have the best opportunity in more than three decades to transform our antiquated tax code for the benefit of everyone.”
Heritage Action CEO Michael Needham: “We have a once in a generation opportunity to fundamentally reform our nation’s stagnant and convoluted tax code that suppresses American job creators and workers. Heritage Action applauds President Trump and congressional leaders for uniting behind a coherent set of reforms and reductions that align with conservative priorities.  If enacted, there is no doubt such a plan would unleash economic growth, create jobs and increase wages.”
Consumer Action for a Strong Economy: “CASE enthusiastically supports the bold and dynamic Tax Reform proposal released today by President Trump and Congressional leaders. They understand the critical need America’s workers and businesses have for a tax system that will create jobs, spark economic growth, and let people keep more of what they earn. This is exactly what they accomplished by putting forth a plan that lowers individual and corporate tax rates, makes our tax code simpler, fairer, and less complicated, and creates incentives to keep jobs in America and bring trillions of dollars of assets back to our shores. CASE fully supports this framework and will work with lawmakers and other leaders to see it come to fruition, to finally bring an end to the current tax structure which punishes work, savings and investment, while making America less competitive in the global economy.”
Middle-Class Growth Initiative Spokesman Michael Steel: “Pro-growth tax reform is decades overdue, and the unified framework released today is a major step toward the simpler, fairer tax code Americans deserve…. With the prosperity of middle-class families as a central objective, these reforms will lead to higher wages, greater job creation, and stronger economic growth. Workers are counting on members of Congress and the Administration to come together and pass this plan.”
U.S. Chamber Of Commerce Senior Vice President And Chief Policy Officer Neil Bradley: “Today’s announcement, and the unity of vision shown in it, bolsters our confidence that tax reform can be enacted this year. The engagement and enthusiasm for pro-growth tax reform from Trump administration officials and Congressional lawmakers is what will propel this over the finish line for American businesses, workers, and families. The U.S. Chamber applauds the work that has been done to narrow the differences and we look forward to continuing to engage policy makers on this critical issue.”
National Association of Manufacturers President And CEO Jay Timmons: “Today is a great day for those who believe America’s best days are still ahead. This tax reform framework is the type of bold action manufacturers have been calling for because it will spur economic growth for all Americans. The United States needs to continue to be the most attractive place to invest and start a business, and this initial proposal is a positive step in that direction.”
Small Business & Entrepreneurship Council President And CEO Karen Kerrigan: “The unified framework released by GOP leaders and tax writers today is a solid starting point for tax reform. The plan lowers rates for small businesses, simplifies the tax system and encourages investment and capital formation. These are the necessary pieces for producing a healthy ecosystem that will enable American entrepreneurs and small businesses to succeed…. It is a bold package that will produce big growth for the U.S. economy.”
The National Federation of Independent Business: “We are grateful to the President and congressional leaders for remaining steadfast on tax reform. We are pleased to see that the initial plan calls for reducing taxes on pass-through companies, which represent the overwhelming majority of American small businesses. This is the beginning of a long process, and we look forward to more details. NFIB will remain engaged to ensure that tax reform starts with small business. Small businesses need meaningful reform that lowers their tax bill, allows them to invest in their business, create jobs, and grow the economy.”
National Retail Federation President and CEO Matthew Shay: “We look forward to hearing more details but this is a very positive step forward to achieving the kind of comprehensive tax reform that is needed to keep our nation’s economy competitive in the global environment.  This plan would provide much-needed relief for corporations, small businesses and middle-class individuals alike, and would help draw foreign capital and investment to the United States. This is the framework we need to unlock job creation and economic growth. As an industry that pays at or close to the full 35 percent federal corporate tax rate, our focus is on eliminating tax breaks that benefit only a few industries and using the money saved to lower rates for all businesses.  If you get the rate low enough, that would benefit everyone equally and fairly without the need for special treatment that favors one sector of the economy over another. Economic studies show that this type of reform will increase investment in the United States, increase wages and help our customers. That is our No. 1 goal, and it has been for years.  Retailers are affected by both the business and individual sides of tax reform.  The relief provided to corporations and small business ‘pass-throughs’ in this plan would help ease retailers’ tax burden and free up capital for investment, job growth, higher wages and innovation. But just as importantly, the middle-class relief provided here means consumers would have more money in their pockets when they come into our stores, and that would mean a boost for the consumer spending that drives both retail sales and two-thirds of our nation’s economy.”
Associated Builders and Contractors: “The tax framework released today marks a promising step forward for the first genuine reform of the tax code in a generation. Associated Builders and Contractors is encouraged by the proposal, and we strongly support the tax reform process moving forward. The framework and its targets go a long way toward advancing ABC's tax policy goals. Construction historically faces the highest effective tax burden of any industry. The vast majority of construction firms are small and family-owned businesses that pay taxes at individual rates. The equivalent rate reduction envisioned in the framework for businesses on both sides of the code, paired with a broader tax base, moves toward ABC’s vision of fair treatment for all companies regardless of size, structure or sector. While the framework is an important first step, there is much work to be done. Before this process can move forward, Congress must pass a budget resolution that instructs tax writers to turn this framework into legislative language. With so much left to the discretion of the committees, there is little time to spare. We look forward to working with both chambers to build on the structure of this framework in a way that promotes simplicity, fairness and economic growth.”
Business Roundtable President And CEO Joshua Bolten: “The ‘Big Six’ framework, including a globally competitive rate and a shift toward a territorial system, is an important step in the process and we need to keep the momentum building.”
Financial Services Roundtable CEO Tim Pawlenty: “The Big Six tax announcement reflects a commitment to delivering a simpler and fairer tax code that grows the economy and benefits more hardworking Americans…. As Congress puts pen to paper this fall, the financial industry looks forward to continuing to be a constructive partner in passing reform.”
JPMorgan Chase & Co. Chairman And CEO Jamie Dimon: “Today’s announcement is an encouraging step forward in our shared goal of a tax system that delivers higher economic growth, job creation and wages that our country desperately needs. Congress must act with urgency on this framework and move the legislative process forward. Congress and the Administration are committed to tax reform, and business leaders are equally committed to pushing beyond our parochial interests to achieve a result that benefits the economy and American workers.”
EY Global Chairman And CEO Mark Weinberger: “The unified framework provides the necessary elements to create jobs and growth: competitive tax rates for businesses, a more competitive international tax system that would not punish businesses for bringing foreign earnings to the United States and middle class tax relief…. This will provide greater certainty and allow businesses to increase investment in workers and capital equipment and grow the economy.”
Securities Industry and Financial Markets Association (SIFMA) President and CEO Kenneth Bentsen: “SIFMA strongly supports tax reform and we are encouraged that the Framework announced today is another step toward a fair and competitive result for our members and their clients.  We agree with the authors of today’s Framework that we need to modernize the Internal Revenue Code to enhance economic growth and improve the standard of living for all Americans.  SIFMA remains committed to promoting policies that grow the U.S. economy and preserve our robust capital markets.”
AT&T Senior Executive Vice President and Chief Financial Officer John Stephens: “The tax framework released today is a big step toward meaningful reform that would encourage more investment and job creation in the United States. A significantly lower corporate tax rate will help U.S. companies compete with companies from other industrialized countries and spur long-term economic growth. For AT&T, we would step up our investments in the technology and next-generation networks that are engines of our modern economy. We look forward to working with Congress as they take the necessary steps to move quickly through the process to reform the tax code.”

September 27, 2017
Democratic National Committee

TO: Interested Parties
FROM: The Democratic National Committee
DATE: September 27, 2017
RE: The Truth Behind Republicans’ Tax Plan
The Republican tax “reform” plan is nothing more than a thinly-veiled giveaway to big corporations and the 1% – which makes sense coming from an administration led by a billionaire tax cheat who refuses to release his own tax returns.
Trump tapped two former Wall Street executives –  Steven Mnuchin and Gary Cohn – to hammer out a tax plan out of the public eye that would be a massive windfall to Trump and his wealthy corporate buddies. Among the two, Mnuchin has been the primary salesperson to the American people (a terrible one at that), while he has found himself engulfed in scandals over his luxurious lifestyle and abuse of taxpayer dollars.
With people like this leading the way, how can hardworking families expect the Republican tax plan to look out for them?
The answer is they can’t. A majority of Americans believe that President Trump’s tax plan would disproportionately benefit wealthy Americans. And they’re right. This is a tax plan written by Wall Street, for Wall Street.
Republicans know that if they’re honest about what’s in their tax plan, Americans will oppose it. That is why they have retreated to deceitful math and flat out lies to try and sell their sham of a tax reform plan – In reality it is not tax reform at all, it is just more tax cuts for wealthy corporations and the 1%.
If Republicans were serious about tax reform, they’d join Democrats in promising that not one penny in tax cuts should go to giant corporations or the 1%. As Republicans are set to release their proposals today, here is a look at the truth behind their plan.
The latest:
Republicans agreed to raise the lowest individual tax rate from 10 to 12 percent. Trump is trying to sell this plan as a populist tax proposal, but it is anything but – It includes more tax cuts for the rich, while actually increasing rates on low-income Americans.
The latest corporate tax cut Republicans have put on the table is still a trillion-dollar giveaway. That’s outrageous by itself, and immoral compared to the trillions of dollars in health care cuts Republicans proposed in the Cassidy-Graham-Heller health care repeal bill, and have similarly advocated for in previous repeal attempts.
Republicans have even floated proposals to try and tie health care repeal to tax reform in the Senate, which would mean they would be using Medicaid cuts that would hurt the elderly, disabled, low-income families and children, to directly pay for tax cuts for the rich. And the House Republican budget already ties their tax plan to a roughly $2 trillion cut in health care funding.
These proposals demonstrate the basic principle of the Republican Party: Tax cuts for the rich at the expense of hardworking Americans.
Public polling:
The American people overwhelmingly oppose key components of the Republican tax plan and, rightfully, think that it will benefit only the wealthiest Americans.
NBC/WSJ poll:
·         4% of Americans want a tax cut just for corporations.
·         42% of Americans say Congress shouldn’t cut taxes right now.
·         62% of Americans say taxes for the wealthy should be increased.
Washington Post/ABC poll:
·         51% of Americans believe that President Trump’s tax plan will disproportionately benefit wealthy Americans.
·         A plurality of Americans (44% to 28%) already say they oppose Trump’s tax plan.
·         65% of Americans say large corporations pay too little in taxes – including 47% of Republicans.
·         Just 33% support reducing taxes on higher-income individuals.
Politico/Morning Consult poll:
·         60% believe that corporations don’t pay enough in taxes.
While we know that the Republican tax plan would benefit giant corporations and the 1% at the expense of hardworking Americans, we won’t know the specifics of their tax plan until the last minute. Where their phony rhetoric runs into reality, Republicans simply leave out hard numbers and claim it will all magically get worked out behind closed doors.
This is the new Republican playbook. We saw it with health care, and now we’re seeing it with tax reform. Republicans will wait until the last minute to make the details of their plan public, in hopes that they will be able to force a partisan vote without anybody knowing how damaging their legislation would be.
Republicans know that Americans don’t like their tax proposals and that the more people learn about their plan, the more they won’t like it.
Phony math:
Republicans are trying to use magical math to sell their tax plan to the American people.
The reported cost of the Republican tax plan -- $1.5 trillion -- is less than the cost of their corporate tax plan alone:
·         $1.8 trillion: cost of cutting the corporate tax rate from 35% to  20%, over 10 years.
·         $425 billion: cost of the “Trump loophole,” lowering the top rate on “pass throughs” from 39.6% to 25%, over 10 years.
·         $175 billion: cost of paying the estate tax on estates worth more than $5.5 million. Only 50 farms and small businesses will face any estate tax this year.
·         $400 billion: cost of repealing the Alternative Minimum Tax, which is paid only by wealthy households, over 10-years.
·         $5 trillion: the combined cost of the Trump tax plan, over 10 years.
What’s really going on here? Republicans are using unprecedented gimmicks to hide the true cost of their tax cuts.
·         “Current policy baseline” gimmick: rarely-used trick that magically reduces the cost of the Republican tax cuts by $439 billion.
·         “Dynamic scoring” gimmick: Republicans are already dismissing the Joint Committee on Taxation’s estimates for how much growth their tax cuts will produce to offset costs (even before they have a plan for the committee to score!).
·         “Temporary tax cut” gimmick: because their tax cuts will increase the budget deficit outside of the 10-year reconciliation window, Republicans will likely make some of them temporary. Ironically, temporary tax cuts do little or nothing to support economic growth.
·         “Revenue-negative” cuts: Republicans have abandoned tax reform and some are even advocating for their cuts not to be paid for.
·         The reality: the $1.5 trillion tax cut costs vastly more than Republicans are saying. They owe it to the American people to explain the actual details of their proposal -- including any secret pay-fors that increase taxes on middle- or lower-income Americans or make deep cuts to programs families rely on.
Broken promises:
One thing we can be certain of is that with their tax plan, Trump and Republicans will break, and have already broken, promises they made to the American people.
·         Mnuchin pledged that Trump’s tax plan would not benefit the highest earners.
Bloomberg: “Mnuchin said in late November that Trump’s tax plan would benefit middle-class taxpayers, not the highest earners -- an assurance that some Democrats quickly labeled ‘the Mnuchin Rule.’”
·         Trump claimed “the rich will not be gaining at all with this plan.”
TRUMP: “And the rich will not be gaining at all with this plan.  We’re looking for the middle class, and we’re looking for jobs.  Jobs, meaning companies.”
·         Trump said “wealthy Americans are not my priority.  My priority are people in the middle class, and that’s where we’re giving the big tax reduction to.”
TRUMP: “So the wealthy Americans are not my priority.  My priority are people in the middle class, and that’s where we’re giving the big tax reduction to.  It’s about the middle class, and it’s about jobs.”
·         Trump claimed that under his plan, “tax relief will be concentrated on the working and middle-class taxpayer.”
TRUMP: “By lowering rates, streamlining deductions and simplifying the process, we will add millions and millions of new jobs. In addition, because we have strongly capped deductions for the wealthy and closed special interest loopholes, the tax relief will be concentrated on the working and middle-class taxpayer. They will receive the biggest benefit, and it won't even be close. They have been forgotten. We are not going to forget them. They have built our country. We will not forget. Thank you. This is a working- and middle-class tax relief proposal.” [Trump Policy Speech, Economic Club Of New York, New York NY, 9/15/16]
·         Trump said he supported raising taxes on the wealthy, “including myself.”
QUESTION: “Do you believe in raising taxes on the wealthy?” TRUMP: “I do. I do. Including myself. I do.” [Today Show Town Hall, NBC, 4/21/16]
·         Trump said “I’m going to end up paying more than I pay right now in taxes.”
TRUMP: “OK. If I’m individually paying 35 percent, I will tell you that’s more, OK. I’m going to end up paying more than I pay right now in taxes, all right? I will pay more than I pay right now. The reason I’m going to pay more is because I lose all the deductions. They have deductions on top of the deductions, they have hundreds and hundreds of pages of deductions.” [First 100 Days, Fox News, 4/29/17]


‘Tax Breaks for the Wealthiest While Undermining Moms, Families, Our Economy’

MomsRising Leader Urges Congress to Reject Trump/Ryan Tax Plan

Statement from Kristin Rowe-Finkbeiner, executive director and CEO of MomsRising, a national online and on-the-ground organization of more than 1 million mothers and their families:
“At a time when our country is experiencing unprecedented income inequality, with the rich getting richer and working families struggling to put food on the table and afford child care and college, the Trump administration and House and Senate Republican leaders today offered a plan that provides tax breaks for the wealthiest while undermining moms, families and the economy. This plan would exacerbate inequities and leave the government without the resources it needs for basic services that fuel our economy and lift millions.
“Moms are experts in sniffing out trickery, and we can tell you that the Trump/Ryan Tax Plan is like a green bean hidden in a kid’s napkin. The moms of America won’t be fooled. This plan would line the pockets of the super wealthy, allow major corporations to take further advantage of tax loopholes and hide their profits offshore, while creating a windfall for CEOs without asking them to pay their fair share. It must be rejected. There is nothing in it for America’s working families. We will end up having the pay for this unfair tax plan through massive budget cuts to vital health care, education and nutrition programs -- as well as reductions in disaster assistance, Medicare and infrastructure. This plan would hurt our families and our economy!
“If the Trump administration spent half as much time working to improve life for moms, low-wage workers, single parent families, people living in poverty, those with disabilities, seniors and communities of color, the country would be better off and the President’s approval ratings would not be at historic lows. True tax reform would put families front and center and ask wealthy corporations, millionaires and billionaires to pay their fair share. Any tax plan the helps struggling families must include working family tax credits that strengthen and improve programs like the EITC (Earned Income Tax Credit), Child Tax Credit (CTC), and Child and Dependent Care Tax Credit (CDCTC). We must prioritize lifting up low- and moderate-income families, first and foremost.
“This tax plan is more of the same from an administration that’s hallmark is working to rob from the poor and the middle class to make life even easier for the very rich. Just as Congress rejected disastrous health care repeal bills, it must reject any tax plan that would give massive tax cuts to millionaires, billionaires and wealthy corporations while weakening our economy and forcing major cuts to the programs that boost our families the most.”
#     #     #     #
MomsRising.org is an on-the-ground and online grassroots organization of more than a million people who are working to increase family economic security, decrease discrimination against women and moms, and to build a nation where businesses and families can thrive. Established in 2006, MomsRising and its members are organizing and speaking out to improve public policy and to change the national dialogue on issues that are critically important to America’s families, including criminal justice reform, immigration policy reform, and gun safety. MomsRising is  working for paid family and medical leave, affordable, high quality childcare and early learning, and for an end to the wage and hiring discrimination which penalizes women—particularly moms and women of color— and so many others. MomsRising advocates for access to healthy food for all kids, health care for all, earned sick days, and breastfeeding rights so that all children can have a healthy start. MomsRising maintains a Spanish language website: MamásConPoder.org. Sign up online at www.MomsRising.org — and follow us on our blog, and on Twitter and Facebook.

Democratic National Committee
September 28, 2017

Trump Tells Huge Lies to Sell Tax Plan

President Trump told huge lies yesterday in a vain attempt to sell his tax plan to the people it would hurt the most. The list goes on and on. Scroll down and see for yourself:
LIE: Trump tried to sell his tax cut as a “middle class miracle.”
TRUMP: “Democrats and Republicans in Congress should come together finally to deliver this giant win for the American people and begin a middle class miracle. It’s called a middle class miracle once again. It’s also called a miracle for our great companies, a miracle for the middle class, for the working person.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Trump’s tax plan would not benefit lower and middle-income Americans.
New York Times: “The tax plan that the Trump administration outlined on Wednesday is a potentially huge windfall for the wealthiest Americans. It would not directly benefit the bottom third of the population. As for the middle class, the benefits appear to be modest.”
USA Today: “Many Trump voters will get zero from Republican tax 'framework'”
FACT: Trump’s plan could raise taxes on middle-class Americans by raising the bottom tax bracket and eliminating personal deductions.
Center on Budget and Policy Priorities: “The Big Six framework adjusts numerous individual income tax provisions, but the end result would likely be close to a wash for many low- and middle-income families. The document’s rhetoric focuses on changes benefiting these households, such as the proposed increases in the standard deduction and Child Tax Credit.  In many cases, however, these benefits are offset by other provisions in the framework, such as the elimination of personal exemptions and the increase in the bottom marginal rate from 10 percent to 12 percent for some filers.”
Forbes: “To illustrate, assume a married couple with four children earning $40,000. Under current law, taxable income would be reduced by a $12,700 standard deduction and six personal exemptions for a total of $24,300, resulting in taxable income of $4,000, and a tax bill of $400.  Under the new framework, however, this same family would reduce income by only the new $24,000 standard deduction; no personal exemptions would be permitted. As a result, taxable income would be $16,000, and with the new bottom rate of 12%, this family would pay tax of $1,920, or $1,500 greater than under current law.”
FACT: Trump’s tax cuts would leave most Americans worse off through rising deficits and offsetting program cuts.
Vox: “We don’t know a lot of details about President Trump’s tax plan, but we do know it’s expensive, in terms of lost revenue for the federal government. Paying for it could very well mean cutting programs that Americans rely on, leaving most of the country worse off than before the tax cuts.”
USA Today: “But a lack of fiscal restraint, plus two unwarranted giveaways to America's financial elite, make this version unworthy of support. By one initial estimate, the framework would result in $2.2 trillion in lost revenue over the next decade.”
LIE: Trump claimed “the biggest winners” from a corporate tax cut would be “everyday American workers.”
TRUMP: “We will reduce the corporate tax rate to no higher than 20%. That’s way down from 35 and 39%. Which is substantially below the average of other industrialized nations. This is a revolutionary change. And the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor, and as wages start going up at levels that you haven’t seen in many years.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Corporate tax cuts overwhelmingly benefit the rich, not workers.
Economic Policy Institute: “The most obvious giveaways to the rich are a reduction in the top individual rate to 35 percent and a cut in the top corporate rate to 20 percent. As we’ve noted before, cuts to corporate rates are cuts to the rich, period.  But these are just the most-obvious tax cuts for the rich.”
Washington Center for Equitable Growth: “Research shows that corporate tax cuts are far more likely to end up in the hands of those at the top of the income distribution. All major models from the Joint Committee on Taxation, the Congressional Budget Office, the U.S. Department of Treasury, and the nonpartisan Tax Policy Center put the vast majority of the corporate tax burden on capital or shareholders.”
Center on Budget and Policy Priorities: “Most corporate rate cuts go to high-income investors and don’t ‘trickle down’ to workers. Proponents of corporate rate cuts often claim workers will benefit because companies will invest more and therefore boost wages.”
LIE: Trump claimed that “more income for more people will be taxed at a rate of zero” under his plan.
TRUMP: “Under this framework, the first $12,000 of income earned by a single individual will be tax-free. And a married couple won’t pay a dime in taxes on their first $24,000 of income. So, a married couple, up to $24,000, can spend their money on their family, on their children, on what they have to do. So much better. In other words, more income for more people will be taxed at a rate of zero.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Trump exaggerated the benefit of the increased standard deduction as he also eliminated the personal exemption.
Business Insider: “The plan would increase the standardized deductions available to taxpayers by 15% or less.  Meanwhile, taxpayers who still wouldn’t take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.”
Business Insider: “Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds to $10,400, or $11,650 if you’re a senior citizen.  The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That’s a 15% increase — except for seniors, who get a 3% increase.”
FACT: By raising the bottom tax rate from 10% to 12% and eliminating personal deductions, some families could face a tax increase.
Forbes: “To illustrate, assume a married couple with four children earning $40,000. Under current law, taxable income would be reduced by a $12,700 standard deduction and six personal exemptions for a total of $24,300, resulting in taxable income of $4,000, and a tax bill of $400.  Under the new framework, however, this same family would reduce income by only the new $24,000 standard deduction; no personal exemptions would be permitted. As a result, taxable income would be $16,000, and with the new bottom rate of 12%, this family would pay tax of $1,920, or $1,500 greater than under current law.”
LIE: Trump claimed he was eliminating tax breaks so his cuts were “focused on the middle class, the working men and women, not the highest income earners.”
TRUMP: “We’re doing everything we can to reduce the tax burden on you and your family, by eliminating tax breaks and loopholes, we will ensure that the benefits are focused on the middle class, the working men and women, not the highest income earners.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Trump’s tax plan includes new loopholes for the wealthy and large corporations.
Economic Policy Institute: “Contradicting their claims to simplify the tax code, Republicans are adding loopholes. Anybody who studies taxes knows that they are not complicated because of the rates—you look those up in a table after you’ve done the hard part of wrestling with deductions and exclusions. So making 7 rates into 3 does nothing to deal with the complexity of the tax code. But adding further loopholes for the rich and big corporations does exacerbate the code’s complexity and unfairness.  One of their more egregious loopholes is hidden behind rhetoric about helping ‘small business.’”
Washington Post: “The White House and Congress promised to close some loopholes that businesses currently enjoy, but no one is saying what those are yet. In fact, the only details we have show MORE business goodies, not less. The plan calls for businesses to be able to write off their investments (e.g. the cost of building a new factory) right away instead of crediting a little bit each year for several years.”
FACT: Trump’s plan keeps the capital gains tax break that overwhelmingly benefits the wealthiest taxpayers.
Los Angeles Times: “The capital gains tax preference is preserved. As we’ve noted before, wealthy taxpayers have been willing to give up a lot of breaks, as long as the capital-gains preference remains in place. The top tax rate on ordinary income is 39.6% (reduced to 35% in the tax proposal); the top rate on capital gains is just over half that — 23.8%. The preferential rate delivers an estimated $120 billion a year to taxpayers who are overwhelmingly members not merely of the 1%, but the 0.1% — they’re the recipients of almost 76% of the capital gains tax benefit.”
FACT: Trump created a pass-through loophole that would primarily benefit millionaires and billionaires like himself.
Center on Budget and Policy Priorities: “Setting a special, much lower top rate of 25 percent for ‘pass-through’ income.  This is income from businesses such as partnerships, S corporations, and sole proprietorships that business owners claim on their individual tax returns…  Based on TPC analysis, 79 percent of the benefit of this tax cut would flow to filers with incomes above $1 million.  The 400 households with the highest incomes would receive an average tax cut of $5.5 million from this provision alone.”
Fortune: “A look at that agenda shows that Trump is not unrigging the tax code for you. He is trying to rig the tax code for Donald Trump and give himself a huge tax cut. One of the biggest and most costly proposals in the Trump-GOP tax plan is a giant new loophole for wealthy business owners like Trump himself. It would create a special, preferential tax rate for income from so-called ‘pass through’ businesses, such as partnerships, S-corporations (privately held corporations that elect to be taxed as partnerships), and limited liability companies (LLCs).”
FACT: Trump eliminated the alternative minimum tax which was aimed to prevent high-earners from taking advantage of too many loopholes.
Center on Budget and Policy Priorities: “Eliminating the Alternative Minimum Tax.  This tax is designed to ensure that higher-income people who take large amounts of deductions and other tax breaks pay a minimum level of tax.”
Fortune: “But that’s not the only way that Trump’s tax plan would rig the tax code for Trump. Republican tax proposals also want to eliminate the Alternative Minimum Tax (AMT), which—as we know from Trump’s leaked 2005 tax returns—was the only reason he paid any substantial income tax that year. The AMT is an anti-loophole backstop in the tax code that ensures high-income taxpayers cannot take advantage of so many deductions and other preferences that they pay no tax or virtually no tax.”
FACT: Republicans’ repatriation tax holiday would be a massive giveaway to multinationals that offshore jobs and profits.
Los Angeles Times: “Instead, multinationals used the repatriated funds to pay dividends to shareholders and buy back their stock, actions that disproportionately benefit wealthy shareholders. In fact, the largest participants in the 2004 repatriation holiday, including Pfizer and IBM, cut jobs and research. ‘Once the holiday ended, the multinationals went right back to accumulating earnings off-shore, anticipating another tax holiday,’ Rosenthal writes.”
Washington Post: “Even worse for U.S. workers, some of the companies that brought the most money back, such as Pfizer, Merck and Colgate-Palmolive, turned around and cut jobs in 2005 and 2006, according to a report by the nonpartisan Congressional Research Service.”
LIE: Trump claimed he was eliminating the estate tax “to protect millions of small businesses and the American farmer.”
TRUMP: “To protect millions of small businesses and the American farmer, we are finally ending the crushing, the horrible, the unfair estate tax. Or as it is often referred to, the death tax. That means especially for all of you with small businesses that are really tremendous businesses, you may be able to leave them to your family.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: The estate tax only affected a small handful of small businesses and farms.
Tax Policy Center: “Only roughly 50 small business and small farm estates nationwide will face any estate tax in 2017, according to TPC.  TPC’s analysis defined a small-business or small farm estate as one with more than half its value in a farm or business and with the farm or business assets valued at less than $5 million.  Furthermore, TPC estimates those roughly 50 estates will owe less than 6 percent of their value in tax, on average.”
Washington Post: “Trump’s rhetoric surrounding the ‘death tax’ is deeply at odds with reality. According to the U.S. Department of Agriculture, 0.4 percent, or 153 farms out of 38,328 farm estates, actually paid any estate tax in 2016. If you round to the nearest whole percent, it’s essentially zero.”
FACT: The estate tax only affects estates worth over $5.5 million.
CNN: “The current estate tax only applies to estates over $5.5 million. As such, it only affects about 0.2% of all estates in any given year, according to the Tax Policy Center.”
FACT: Eliminating the estate tax could save members of Trump’s cabinet a collective $1.5 billion.
Fortune: “While only about one in 500 Americans are wealthy enough that their estates pay the estate tax, 13 of the 24 members of Trump’s cabinet qualify. Altogether, the cabinet stands to receive an estate tax cut estimated at $1.5 billion.”
LIE: Trump claimed his tax cut for the wealthy was “not good for me.”
TRUMP: “Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected. They can call me all they want. It’s not going to help. I’m doing the right thing. And it’s not good for me, believe me.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Trump’s tax cut would be a massive windfall for himself and his heirs.
New York Times: “Trump tax plan benefits wealthy, including Trump”
Fortune: “Trump’s reform plan is all about cutting taxes – for Trump”
FACT: Trump’s “small business” tax cut would almost exclusively benefit wealthy business owners like himself.
Fortune: “A look at that agenda shows that Trump is not unrigging the tax code for you. He is trying to rig the tax code for Donald Trump and give himself a huge tax cut. One of the biggest and most costly proposals in the Trump-GOP tax plan is a giant new loophole for wealthy business owners like Trump himself. It would create a special, preferential tax rate for income from so-called ‘pass through’ businesses, such as partnerships, S-corporations (privately held corporations that elect to be taxed as partnerships), and limited liability companies (LLCs).”
FACT: Without the alternative minimum tax, Trump could save tens of millions of dollars in one year.
Fortune: “But that’s not the only way that Trump’s tax plan would rig the tax code for Trump. Republican tax proposals also want to eliminate the Alternative Minimum Tax (AMT), which—as we know from Trump’s leaked 2005 tax returns—was the only reason he paid any substantial income tax that year. The AMT is an anti-loophole backstop in the tax code that ensures high-income taxpayers cannot take advantage of so many deductions and other preferences that they pay no tax or virtually no tax. In 2005, Trump paid a total tax rate of about 24% on $150 million of income; without the AMT, he would have paid less than 4%.”
New York Times: “The decades-old Alternative Minimum Tax is meant to prevent America’s wealthiest from using deductions to pay very low or no federal income tax. In 2005, it accounted for about 80 percent of Mr. Trump’s overall income tax payment. His plan to repeal the tax would save him $31.3 million.”
New York Times: “Trump could save tens of millions of dollars in one year under his proposed tax plan”
LIE: Trump claimed corporate tax cuts would “create more jobs and higher wages for American workers.”
TRUMP: “Third, we will cut taxes on American businesses to restore our competitive edge and create more jobs and higher wages for American workers.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Tax cuts for corporations did not raise wages or spur investment.
Washington Center for Equitable Growth: “All major models from the Joint Committee on Taxation, the Congressional Budget Office, the U.S. Department of Treasury, and the nonpartisan Tax Policy Center put the vast majority of the corporate tax burden on capital or shareholders. And there is little to no empirical evidence that corporate tax cuts increase investment and wages across countries; research suggesting as much has rarely found a place in peer-reviewed publications, and early implausible results have been subsequently questioned or overturned.”
New York Times: “Our report analyzes the 92 publicly held American corporations that reported a profit in the United States every year from 2008 through 2015 and paid less than 20 percent of their earnings in federal income tax… If claims about the job-creation benefits of lower tax rates had any validity, these 92 consistently profitable firms would be among the nation’s strongest job creators. Instead, we found just the opposite.”
Center on Budget and Policy Priorities: “Most corporate rate cuts go to high-income investors and don’t ‘trickle down’ to workers. Proponents of corporate rate cuts often claim workers will benefit because companies will invest more and therefore boost wages.”
LIE: Trump claimed companies would spend overseas profits domestically if they got a tax break to bring it back.
TRUMP: “Our framework will stop punishing companies for keeping their headquarters in the United States. We are punishing companies under our codes for being in the United States. We will impose a one-time low tax on returning money that is already offshore so that it can be brought back home to America, where it belongs, and where it can be put to work, and work, and work.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: A repatriation tax break for multinational corporations would not spur job creation or domestic investment.
Washington Post: “But there are a lot of reasons to be highly skeptical of Trump’s repatriation plan. Chief among them is that U.S. companies have already told the world what they would do if they were granted a cheaper way to bring back trillions from overseas — and it wouldn’t be hiring workers or making more investments in America.”
Tax Foundation: “The problem with this argument is that there is little evidence that allowing companies to bring back money from overseas leads to higher investment in the United States in the long run. This makes sense: even though a repatriation holiday would put more money in the bank accounts of U.S. companies, it wouldn’t change the underlying profitability of making new investments in the United States. In addition, companies would not necessarily use repatriated money to invest domestically; they could just as easily decide to distribute the money to their shareholders, to be used for consumption.”
FACT: Companies would take advantage of a repatriation tax break to put money in the pockets of wealthy executives and shareholders.
Washington Post: “The next most popular plan was to spend the money on stock buybacks — when companies purchase their own stock, driving up the price. ‘Companies want to get their money back to buy stock and goose the stock price because their senior executives derive so much of their compensation from the stock prices,’ said Edward Kleinbard, a tax law professor at the University of Southern California and former chief of staff for Congress’s nonpartisan Joint Committee on Taxation.”
Washington Post: “But there are a lot of reasons to be highly skeptical of Trump's repatriation plan… These actions would make rich executives and shareholders wealthier by boosting the company stock price. They would not deliver a boon to workers — or the economy as a whole — as Trump is promising.”
FACT: The 2004 repatriation tax holiday failed to help workers or create jobs.
Washington Post: “The White House tried this once before, and the results were grim. Trump frequently bashes former president George W. Bush, but this tax holiday for foreign profits is straight out of the Bush playbook. In 2004, Congress and Bush dropped the tax rate on foreign earnings to 5.25 percent for a short window in 2004-05. It resulted in a great payday for CEOs and Wall Street shareholders but did almost nothing to help workers.”
New York Times: “The jobs, however, didn’t come. In an analysis a few years later, Kristin J. Forbes, an economist at the Massachusetts Institute of Technology who had been on President George W. Bush’s Council of Economic Advisers when the tax holiday came into effect, and two colleagues from Harvard and the University of Illinois at Urbana-Champaign found that though $299 billion in corporate earnings flowed back into the country during the holiday year of 2005 — almost five times the average of the preceding five years — companies found a better way to use the money. ‘Repatriations did not lead to an increase in domestic investment, domestic employment or R.&D.,’ the authors wrote.”
LIE: Trump claimed a territorial tax system would stop encouraging corporations to store profits overseas.
TRUMP: “Our current tax system makes us one of the few developed nations in the world to punish our companies when they bring wealth earned overseas back into our country. We are punishing them for bringing the money back in. As a result, corporations have parked many trillions of dollars in foreign countries.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: A territorial tax system would reward corporations for offshoring and incentivize the use of tax havens.
Institute on Taxation and Economic Policy: “Corporations would have even greater incentives to engage in accounting gimmicks to make their U.S. profits appear to be earned in offshore tax havens such as Bermuda and the Cayman Islands, where corporate profits are not taxed.”
Institute on Taxation and Economic Policy: “A Territorial System Would Increase Use of Offshore Tax Havens: The ability to avoid U.S. taxes entirely on profits from foreign operations, rather than simply deferring taxes on those profits, would provide a strong incentive to locate real investment overseas rather than in the United States. Less investment in the United States would put downward pressure on the wages of American workers.”
LIE: Trump claimed Pence’s tax cuts in Indiana led to job growth.
TRUMP: “They chose to make Indiana competitive again. They chose and their choice was so important, it included electing a governor who you may have heard of, who signed the largest income tax cut in the state’s history, our very, very terrific person and terrific vice president, Mike Pence. It’s time for Washington to learn from the wisdom of Indiana.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Under Pence, job growth in Indiana lagged behind the national average.
FactCheck.Org: “And under Pence in Indiana, the state has added a net 153,800 jobs (as of June, the latest data available). That’s a job growth rate of 5.3 percent, worse than the 6.6 percent job growth rate nationally over the same period.”
FACT: There is no evidence of a link between Pence’s tax cuts and economic growth in Indiana.
CNBC: “Skeptics argue that the connection between Indiana’s tax cuts and subsequent economic growth is thin.”
Tax Policy Center: “A 2015 paper by the Tax Policy Center found that cuts to top income tax rates have no significant impact on state economies, instead suggesting growth may be more closely linked to property tax revenues.”
LIE: Trump claimed the American people were demanding support for his tax plan.
TRUMP: “Call your congressman, call your senators, let them know you’re watching. Let them know you’re waiting. Tell them that today is the day for decision, that now is the time to heal this self-inflicted economic wound. And that with their action, the future will belong to all of us. If you demand it, the politicians will listen.” [Trump Tax Speech, Indianapolis IN, 9/27/17]
FACT: Americans overwhelmingly oppose Trump’s principles of cutting taxes for big corporations and the wealthy.
ABC News/Washington Post: “Cutting corporate taxes looks like a hard sell for Donald Trump and Republican Party leaders -- a new ABC News/Washington Post poll shows that 65 percent of Americans feel large corporations pay too little in taxes.”
ABC News/Washington Post:  “A tax break for the wealthy would be out of step with public opinion. Overall, a broad 78 percent favor trimming income taxes on middle-and lower-income Americans, while just 33 percent support reducing taxes on higher-income individuals.”

The Concord Coalition
September 27, 2017

Tax Plan Should Not Increase Debt

WASHINGTON -- The Concord Coalition urges congressional leaders and President Trump to ensure that the proposed tax cuts they unveiled today would not increase the federal debt over the next decade.

“Unfortunately, the new framework for revamping the tax code doesn’t contain much new information about how the proposed tax cuts would be financed,” said Robert L. Bixby, executive director of The Concord Coalition. “That’s the critical question. Elected officials are touting all the goodies in terms of tax cuts and lower rates while leaving the trade-offs hidden and which taxpayers would be affected unspecified. That’s hardly a model for legislative responsibility.”

“Tax reform is a worthy goal,” Bixby said. “There is a rare bipartisan consensus that the tax code is too complicated and economically inefficient. Fixing that problem, however, cannot be considered in isolation from the fact that current fiscal policy is already on an unsustainable path. The tax code, whether reformed or not, needs to bring in sufficient revenue to keep that problem from getting worse. It makes no sense to pursue major tax changes without knowing what the overall spending plan is, and given the huge potential revenue loss from the framework proposals, it would certainly not be the fiscally responsible thing to do.”

While the framework suggests that most tax deductions will be eliminated -- a positive goal -- that would likely not be enough to offset the tax cuts being proposed. The net result would be higher debt and thus a limit on any economic growth gains the administration hopes to get from tax reform in the first place.

Tax deductions, preferences and exclusions -- often called “tax expenditures” -- make the tax system more inefficient, complex and regressive. Limiting or eliminating them is an essential step in creating a pro-growth tax reform.

Yet the framework also exempts at least two of the largest tax expenditures -- the deductions for home mortgage interest and charitable contributions. That, combined with the proposed increase in the standard deduction, would severely limit any potential revenue gains.

Moreover, Congress and the president should not indulge in the rosy fiction that tax cuts pay for themselves through higher economic growth. Doing so could dramatically increase the fiscal crunch in the years ahead. While deficit-financed tax cuts can sometimes be justified to help the economy through a recession, that is hardly the case today.

“Fiscal responsibility is itself a growth agenda,” Bixby said. “The debt is already quite high by historical measures and is on an unsustainable path. Tax reform that increases the existing structural budget gap will only make the situation worse by draining the savings and investments needed to make the economy grow.”

A copy of this press release can be found here.          

The Concord Coalition is a nonpartisan, grassroots organization dedicated to fiscal responsibility. Since 1992, Concord has worked to educate the public about the causes and consequences of the federal deficit and debt, and to develop realistic solutions for sustainable budgets. For more fiscal news and analysis, visit concordcoalition.org and follow us on Twitter: @ConcordC