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Dems Are Repeating The Same Rhetoric Bashing Tax Cuts, But Are They Accurate?

- December 13, 2017

Spoiler alert: The answer is no

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TOP TAKEAWAYS

  • Democrats have claimed that GOP tax relief is a "devastating" tax hike when in fact multiple studies have found that the plan cuts taxes for individuals at all income levels.
  • Democrats have engaged in over-the-top, outlandish rhetoric to criticize the tax bill, with Rep. Pelosi even saying it would cause "violence" to middle-class families, despite the fact middle-class families would significantly benefit from an expanded Child Tax Credit in both the House and Senate bills.
  • Despite a significant tax break for small businesses, and the support of major small business groups, Democrats continue to claim that Republican tax relief is somehow bad for small businesses.
  • Democrats say cutting the corporate tax rate as a giveaway to wealthy shareholders despite significant evidence suggesting otherwise, including a CBO study that found domestic labor bears 70 percent of the corporate income tax burden.
  • The Senate bill repeals the individual mandate, Democrats have lied about the nature of this provision suggesting that it would "kick" 13 million people off of healthcare, a claim that was refuted by The Washington Post.

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DEMOCRATS HAVE SPREAD THE FALSE NARRATIVE THAT GOP TAX RELIEF IS ACTUALLY A TAX HIKE

Democrats Have Falsely Claimed The GOP's Tax Bill Is A "Devastating Tax Hike"

Minority Leader Nancy Pelosi (D-CA) Called The GOP Tax Plan "A Devastating Tax Hike." "Every Republican who votes to preserve the utter cruelty of this legislation will be forced to answer why they chose to inflict a devastating tax hike on their own constituents." (Press Release, "Pelosi Statement On Senate Passage Of GOP Tax Scam," Rep. Nancy Pelosi, 12/4/17)

Senate Minority Leader Chuck Schumer (D-NY) Claimed The GOP Tax Bill Would "Raise Taxes." "'My Republican friends must know that "we needed to notch a political win" isn't a good enough excuse for a constituent who asks why you voted to raise their taxes but slash them for big corporations,' Senate Democratic leader Chuck Schumer said Friday." (Matthew Daly, "Senate Democrats Stand United Against GOP Tax Bill," The Associated Press ," 12/3/17)

Democrats Keep Repeating The Same Tired, False Talking Point That The Bill Would Raise Taxes On The Middle-Class

Democrats Have "Falsely Claimed" That The Bill Would Raise Taxes On A Significant Portion Of Middle-Class Families. "Democrats have falsely claimed that the bill would raise taxes on 'most working-class families' - only 6.5 percent of lower-income households will take a direct hit" (David Weigel, "Democrats See Backlash Over Republicans' Tax Bill As A Key To Winning In The Suburbs," The Washington Post , 11/19/17)

Rep. Nancy Pelosi Equated The Passage Of The GOP Tax Bill With "The End Of The World," And Economic "Armageddon" For The Working Class. "Rep. Nancy Pelosi (D-Calif.) hammered the Republicans' tax-code overhaul Monday evening as a culture-shaking economic 'armageddon' that would haunt the working class for years to come. Flanked by other top Democrats in the Capitol, the minority leader blasted Republicans for championing a tax proposal she equated to 'the end of the world.'" (Mike Lillis, "Pelosi Denounces GOP Tax Reform As 'Armageddon.'" The Hill , 12/4/17)

Senator Kirsten Gillibrand (D-NY) Said That The Senate GOP Tax Relief Bill "Doesn't Even Help The Middle Class." "And now, somehow, after years of talking about it, a massive tax bill has finally made its way to the Senate floor, and after all that talk, it doesn't even help the middle class." (Sen Kirsten Gillibrand, Remarks On The Senate Floor , Washington, D.C., 11/29/17)

Senator Schumer Claimed That The GOP Tax Plan Is "Pilfering" The Pockets Of Middle-Class Americans. "Working people in our country are struggling. Corporations and the very wealthy are doing great. There is no reason for rushing through a tax break for millionaires and billionaires, paid for by pilfering the pockets and the healthcare of middle-class Americans. Millions of middle class families will get a tax hike next year, and millions more thereafter because of this bill." (Sen. Chuck Schumer, Remarks On The Senate Floor , 12/1/17)

In Fact, The Vast Majority Of Middle-Class Americans Would See A Tax Break Under The GOP Bills

Citing A Study From The Liberal Tax Policy Center, Politifact Said A "Clear Majority" Of Households Would See A Tax Break Under The House's Tax Cuts And Jobs Act And That "The General Distribution Of Cuts Is Broadly Similar For The Senate Bill." "All told, an analysis of the House bill by the nonpartisan Urban Institute-Brookings Institution Tax Policy Center, found that in 2018, households in the lowest 20 percent of the income spectrum would see an average tax cut worth $60. The next 20 percent would see a cut of $310, and the middle 20 percent would get an average of $830 in savings. By 2027, these groups would all continue to see cuts, but smaller ones. For instance, the middle quintile would see its cut shrink by more than half, to $360. Not every taxpayer in those groups would see a cut. But in all the income ranges we cited, and in both years, a clear majority of taxpayers in a given income group would see a decrease, according to the Tax Policy Center analysis. The general distribution of cuts is broadly similar for the Senate bill." (Louis Jacobson and Manuela Tobias, "The House And Senate Tax Bills, Explained," Politifact , 11/28/17)

Under Current Law, A Family Making $60,000 A Year With Two Children Would Save $1,136 From The House's Tax Cuts And Jobs Act. "Under current law, in 2018, a married couple with two children making $60,000 would get a $13,000 standard deduction and four personal exemptions each worth $4,150. That means they would pay taxes on $30,400 of taxable income. Their base tax bill of $3,608 would be reduced by $2,000 in child tax credits for a total income tax of $1,608. Under the House plan, the same married couple with two children would get $3,800 in tax credits, $3,200 for the two children and $600 for the two parents. The same family would get a $24,400 standard deduction but no exemptions, for $35,600 of taxable income. Their base tax bill of $4,272 would be reduced by the $3,800 in credits for a total income tax of $472." (Richard Rubin, "Republicans Stick With Big Corporate Tax Cuts In House Bill," The Wall Street Journal , 11/2/17)

  • An Analysis Of The House's Tax Cuts And Jobs Act By The Tax Foundation Found That The Bill "Would Increase The After-Tax Incomes Of Taxpayers In Every Taxpayer Group In 2018." "On a static basis, the Tax Cuts and Jobs Act would increase the after-tax incomes of taxpayers in every taxpayer group in 2018." ("Details And Analysis Of The 2017 Tax Cuts And Jobs Act," Tax Foundation , 11/3/17)
  • Thomas A. Barthold, The Joint Committee On Taxation's Chief Of Staff, Said That In 2019 "There Is A Tax Benefit To All Income Categories As We Measure Them" Under The House Plan. "In 2019 our projections, the analysis that I just described would say that there is a tax benefit to all income categories as we measure them." (Markup Of The Tax Cuts And Jobs Act, Committee On Ways And Means, U.S. House Of Representatives, 11/6/17)

Middle-Class Americans Fare Even Better Under The Senate Tax Cuts And Jobs Act, The Senate Finance Committee Bill Would "On Average, Cut Taxes For People At Every Income Level ." "Still, middle-class earners would fare better under the Senate proposal than its counterpart in the House, the analysis found. The Senate Finance Committee bill would, on average, cut taxes for people at every income level." (Jim Tankersley and Ben Casselman, "Senate Plan Could Increase Taxes On Some Middle-Class Workers," The New York Times , 11/10/17)

  • The JCT Found That In 2019, 71.7 Percent Of People With Incomes Between $40,000 And $50,000 A Year Would See A Tax Cut Of $100 Or More, And 61.7 Percent Of All Americans Would See The Same Break. "Here's a breakdown of the rest of the JCT's findings: In 2019: 61.7% of Americans would see a tax cut of $100 or more, 30.2% a change of less than $100, 8.1% an increase of at least $100. 71.7% of people with incomes of $40,000 to $50,000 would see a tax cut of more than $100, 20.5% little change, 7.7% an increase of more than $100." (Bob Bryan, "Here's Who Would Be The Winners And Losers Under The Latest Senate Republican Tax Bill," Business Insider , 11/30/17)

DEMOCRATS HAVE MISLED THE PUBLIC ABOUT THE SUBSTANTIAL BENEFITS FAMILIES WILL RECEIVE FROM THE REPUBLICAN TAX RELIEF BILLS

House Minority Leader Nancy Pelosi Said The GOP Tax Relief Bill Would Inflict "Violence" On Families

Rep. Nancy Pelosi Held A Press Conference And Spoke About The "Violence" The Bill Inflicts On Families. Rep. Nancy Pelosi: "Some of us were together a couple of weeks ago, right before Thanksgiving with the women members of the Ways and Means Committee because what we're talking about is what happens in this tax bill. And what violence it does, not only to families immediately, but the impact it has on other budget decisions." (Press Release, "Pelosi Remarks At Press Conference On The Impact Of The #Goptaxscam On Children And Families," Rep. Nancy Pelosi , 12/6/17)

Senator Kirstin Gillibrand (D-NY) Claimed That "Regular, Hardworking" Families Have A Good Chance Of Being Hurt By This Bill . "If you are not rich - if you are just a regular, hardworking family - then there is a very good chance that you are going to take a big hit if this bill passes. So I urge every one of my colleagues to do what's right for families, and oppose this plan." (Sen Kirsten Gillibrand, Remarks On The Senate Floor , Washington, DC, 11/29/17)

Sen. Debbie Stabenow (D-MI) Claimed She Voted No Because The Bill Raised Taxes On Middle Class Families. "I voted no because I could not support raising taxes on middle-class families, seniors, and farmers and leaving Michigan families without health insurance to pay for huge tax giveaways for the wealthiest one percent of Americans." (Press Release, "Stabenow Statement Following Senate Vote On Republican Tax Bill," Sen. Debbie Stabenow , 12/2/17)

But In Fact, Many Families Would Benefit From The Significant Expansion Of The Child Tax Credit Included In Both The Senate And House Bills

The House Bill Would Increase The Size Of The Child Tax Credit To $1,600 Per Child, And Adds A $300 Credit For Each Non-Child Dependent. "Increase in the size of the child tax credit. A pet project of Ivanka Trump, the proposal is to increase the credit to $1,600 from $1,000. The bill would also add a credit of $300 for each non-child dependent or parent for five years, after which that provision would expire" (Bob Bryan, "The GOP Finally Unveiled Its Massive Tax Plan That Proposes A Sweeping Overhaul To The System," Business Insider , 11/2/17)

The Senate Bill Increased The Child Tax Credit To $2,000 Per Child, Up From The Current $1,000 Per Child, And Expanded Age Restrictions. "The Senate GOP bill increases the child tax credit to $2,000 per child, up from $1,000 today, and above the $1,600 proposed in the House bill. Senate GOP tax writers would make the credit available for any children under 18, up from today's under-17 age limit." (Jeanne Sahadi, "Here's What's In The Senate Republican Tax Bill," CNN , 11/30/17)

Low-Income Americans Benefit From An Expanded Child Tax Credit And The Doubling Of The Standard Deduction . "People on the lower end of the income spectrum could benefit from an approximate doubling of the standard deduction to $24,000 for joint filers, and from an expansion of the child tax credit." (Louis Jacobson and Manuela Tobias, "The House And Senate Tax Bills, Explained," Politifact , 11/28/17)

DESPITE DELIVERING SIGNIFICANT RELIEF TO SMALL BUSINESSES, DEMOCRATS HAVE REPEATEDLY MISLED THE PUBLIC ABOUT THE PLAN'S EFFECTS ON SMALL BUSINESS

Democrats Have Claimed That The GOP's Tax Bill Is Bad For Small Business

Senator Elizabeth Warren (D-MA) Claimed That The Republican Tax Relief Plan "Does Nothing To Level The Planning Field" For Small Business. "If the Republicans in Congress think this plan helps small businesses, then they don't know anything about small businesses. This plan does nothing to level the planning field and it does nothing to address the real problems that small businesses face. In fact, it makes their challenges harder." (Sen. Elizabeth Warren, Remarks At The Center For American Progress , Washington, D.C., 11/14/17)

Senator Maggie Hassan (D-NH) Claimed That The Senate Republican Tax Bill Would Hurt Small Businesses. "Senator Maggie Hassan (D-NH) released the following statement after voting against the Senate Republican tax bill, which will hurt hard-working Granite Staters and small businesses." (Press Release, "Senator Hassan: 'This Partisan Tax Bill Is A Giveaway to Corporate Special Interests,'" Sen. Maggie Hassan, 12/2/17)

Senator Tim Kaine (D-VA) Claimed That The Republican Tax Bill Does Not Put Small Businesses First . "For months, I've tried to convince Republicans to work with us on a tax reform bill that would actually put middle-class families and small businesses in Virginia first. Instead, they jammed through a bad bill that will raise taxes on millions of working Americans, explode the deficit, and raise health care premiums." (Press Release, "Kaine Statement On Passage Of Republican Tax Bill," Sen. Tim Kaine, 12/2/17)

Senator Debbie Stabenow Claimed That This Bill Does Not Support Small Businesses. "I've said from the beginning that we need tax reform that makes the tax system simpler, puts more money in your pocket, closes tax loopholes that send jobs overseas and supports small businesses and farms across Michigan. Unfortunately, that isn't at all what this Republican bill does." (Press Release, "Stabenow Statement Following Senate Vote On Republican Tax Bill," Sen. Debbie Stabenow , 12/2/17)

In Reality, The Republicans Tax Plan Provides Significant Tax Relief To Small Businesses Who Feel Strangled By The Current Tax Code

The Number One Concern Of Small Business Owners In America Is Taxes. "Taxes are the No. 1 concern of small-business owners, according to the first CNBC/SurveyMonkey Small Business Survey, released on Friday. A quarter of small-business owners said that taxes are the most critical issue currently facing their businesses." (Elaine Pofeldt, "Most Entrepreneurs Are Optimistic Trump Will Rewrite Tax Code That 'Strangles Them,'" CNBC , 9/9/17)

The Senate Bill Expands Tax Breaks For Pass-Through Businesses . "The Senate plan would expand proposed tax breaks for pass-through businesses." (Jacob Pramuk, "The Senate Just Tweaked Its Tax Plan. Here's What Changed," CNBC , 11/15/17)

  • The Senate Bill Does Not Lower The Top Pass-Through Rate, Instead Creating A 17.4 Percent Deduction That Would Benefit All Small-Business Owners Equally. "The Senate would not create a special, lower top rate for so-called pass-through entities, which are businesses whose profits are distributed to their owners and taxed as individual income. Instead, the Senate would create a 17.4 percent deduction on income taxes for pass-through owners of all income levels, effectively cutting rates both on rich owners and on middle-class small-business owners who would not have benefited from the House's original lower pass-through rate." (Jim Tankersley, Alan Rappeport and Thomas Kaplan "Senate Tax Plan Diverges From House Version, Highlighting Political Pressures," The New York Times , 11/9/17)

The House Bill Lowers Tax Rates For Pass-Through Businesses And Expands The Bracket Widths. "First, the House Tax Cuts and Jobs Act lowers tax rates and expands bracket widths. Under current law, pass-through business income on a single filer's return would hit the 25 percent bracket at $38,700 (in 2018). By comparison, the House Tax Cuts and Jobs Act expands the lower 15 percent bracket so the business would need $45,000 in income to hit the 25 percent bracket. For married filers, it would take $90,000 in income to hit the 25 percent bracket, compared to $77,400 under current law." (Nicole Kaeding, "Small Pass-Through Businesses Would See Some Benefits Under The House Tax Cuts And Jobs Act," Tax Foundation , 11/9/17)

  • The House Plan Provides A 9 Percent Rate On The First $75,000 Of Income For Business Owners Making $150,000 Or Less. "The House plan lowers the top rate from 39.6 percent to 25 percent for small businesses (excluding 'service companies' like consultants and lawyers) and requires a complex formula where the 25 percent rate only applies to about 30 percent of the business income. But the reality is most small businesses - 85 percent - already pay taxes at rates of 25 percent or less. To help out the small 'mom and pops,' the final bill has a 9 percent rate on the first $75,000 in income for business owners making $150,000 or less. But that tax break phases in, meaning it isn't fully available until 2022." (Heather Long, "The House Just Passed Its Big Tax Bill. Here's What Is In It," The Washington Post , 11/16/17)

Juanita Duggan, President And CEO Of The National Federation Of Independent Business (NFIB) Stated "The Best And Fastest Way To Lift Small Businesses Is To Cut Rates And Let Them Keep More Of Their Money To Invest In Their Businesses And Create Jobs. The House Bill Does That." "Still, the best and fastest way to lift small businesses is to cut rates and let them keep more of their money to invest in their businesses and create jobs. The House bill does that, which is why NFIB is proud to support it." (Op-Ed, Juanita Duggan, "Modified House Tax Bill Hits Right Notes For Small Businesses," The Hill , 11/15/17)

  • NFIB: The House Tax Bill Would "Create Substantial Tax Relief For Millions Of Small Business Owners." "We are very grateful to Chairman Brady for listening to our concerns and working with NFIB to ensure that tax reform benefits the greatest possible number of American small business owners. This amendment would create substantial tax relief for millions of small business owners who were left out of the original bill. We urge Republican and Democratic members of the House to support this amendment going forward." ("NFIB Says Amendment Addresses A Key Concern, Includes Small Business Owners In Tax Reform Effort," National Federation Of Independent Businesses , 11/9/17)

DEMOCRATS ARE FALSELY TRYING TO PAINT REFORMS OF THE INTERNATIONAL CORPORATE TAX STRUCTURE AS A TAX BREAK FOR THE WEALTHY

Democrats Claim That Lowering The Corporate Tax Rate Is A Tax Break For Billionaires

Senator Gillibrand Called The Senate Bill "Corporate Welfare" And Claimed That The Changes To The Corporate Tax Code Paid Back Wealthy Donors And Lobbyists. "However, this plan does not seek anything close to the type of relief that regular working people need. Instead, what it does is this: It pays back wealthy donors and lobbyists through corporate welfare. And it does this at the expense of the middle class. In other words, this is a blatant attempt to take millions of families' hard-earned money, and hand it over to rich corporations on the Fortune 500 list." (Sen Kirsten Gillibrand, Remarks On The Senate Floor , Washington, DC, 11/29/17)

Sen. Cory Booker (D-NJ) Claimed That Corporate Tax Cuts Are Unnecessary, And Will Not Help Middle-Class Americans . "This bill is an outrage. The idea that slashing taxes for the wealthiest Americans and big corporations will somehow magically result in more money and increased wages for the middle class is pure folly. Instead of a thoughtfully crafted, bipartisan plan that will truly lift wages and cut taxes for all Americans, Republicans have jammed through a disastrous proposal that lavishes tax cuts on corporations and the wealthiest and raises taxes on everyday Americans. In this perverse plan, the people who need a tax cut the least end up with the most, and those who truly need a tax cut get taken for a ride." (Press Release, "Booker Statement On Senate Passage Of Disastrous Republican Tax Proposal," Sen. Cory Booker , 12/2/17)

In Fact, The Current Tax System Hurts Corporations With Uncompetitive Rates That They Pass On To Their Workers In The Form Of Depressed Wages

The Statutory U.S. Corporate Tax Rate For Most Major Companies Is 34 To 35 Percent . "34 percent of so much of the taxable income as exceeds $75,000 but does not exceed $10,000,000, and (D) 35 percent of so much of the taxable income as exceeds $10,000,000." (26 U.S.C. § 11)

  • The U.S. Corporate Tax Rate Is 16.4 Percent Higher Than The Worldwide Average. "The U.S. tax rate is 16.4 percentage points higher than the worldwide average of 22.5 percent and a little more than 9 percentage points higher than the worldwide GDP-weighted average of 29.5 percent. Over the past ten years, the average worldwide tax rate has been declining, pushing the United States farther from the norm." (Kyle Pomerlau, "Corporate Income Tax Rates Around The World, 2016," Tax Foundation , 08/18/16)

Domestic Labor Bears 70 Percent Of The Corporate Income Tax Burden, While The Domestic Owners Of Capital Bear Slightly More Than 30 Percent Of The Burden. "Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax. The domestic owners of capital bear slightly more than 30 percent of the burden." (William C. Randolph, "International Burdens Of The Corporate Income Tax," Congressional Budget Office , 8/06)

In A Study Focused On Manufacturing Firms, Research Found That "Wages Fall 1 Percent In Response To A 1 Percent Increase In The Corporate Tax Rate." "Labor's burden from the corporate tax is predicted to be 2 to 2.5 times as large as the tax revenue collected in an open economy (Harberger 1995). Several recent studies use empirical analysis to determine the effect of national corporate taxes on wages.15 Research on manufacturing firms found that wages fall 1 percent in response to a 1 percent increase in the corporate tax rate." (Alison Felix, "Do State Corporate Income Taxes Reduce Wages?," Economic Review , 2009)

A National Bureau Of Economic Research Study Found High Corporate Income Taxes Depress Union Wages. "High corporate income taxes reduce the after-tax profits of firms earning rents, which are the same firms that are in positions to pay above-market wages to their employees. Since high taxes mean that there is less for everyone, it can hardly be surprising that high taxes ultimately depress union wages, particularly in capital-intensive industries where corporate taxes have the most impact on a firm's bottom line." (R. Alison Felix and James R. Hines Jr, "Corporate Taxes And Union Wages In The United States," National Bureau Of Economic Research , 8/09)

  • According To The National Bureau Of Economic Research, It Is Reasonable To Expect That The Same Effect Would Also Appear In Non-Union Wages. "But to the extent that there is a rent-sharing aspect of wages in settings without labor unions, it may be reasonable to expect that the same dynamics would appear, in that higher taxes would be associated with reduced wages." (R. Alison Felix and James R. Hines Jr, "Corporate Taxes And Union Wages In The United States," National Bureau Of Economic Research , 8/09)

Domestic Workers Bear The Burden Of A High Corporate Tax Rate Because Wages Fall When Capital Is Relocated Abroad And Workers Cannot Move To Take Advantage Of Higher Foreign Wages. "The tax is likely to be even less efficient because it can distort both the domestic and the international allocations of capital. Domestic workers are more likely to bear a burden because workers cannot move readily between countries. Domestic wages will fall when capital is reallocated abroad and domestic workers cannot move to take advantage of a higher foreign wage rate." (William C. Randolph, "International Burdens Of The Corporate Income Tax," Congressional Budget Office , 8/06)

Reducing The Corporate Tax Rate To 20 Percent Would Increase Wages By 2.8 Percent. "If lawmakers were to cut the 35 percent U.S. corporate rate to the OECD average, it would raise the overall wage rate by 1.9 percent over the long-term and create 425,000 full-time equivalent jobs. By contrast, adopting the UK rate of 20 percent would lift wages by 2.8 percent over the long-term and create more than 600,000 jobs." (Scott A. Hodge, "The Economic Effects Of Adopting The Corporate Tax Rates Of The OECD, The UK, And Canada," Tax Foundation , 8/15)

AS THE SENATE BEGAN WORK ON THEIR TAX RELIEF BILL, DEMOCRATIC SENATORS SPREAD A MYTH THAT MILLIONS WOULD LOSE THEIR HEALTHCARE, AND EVEN DIE, BECAUSE OF THE BILL

Democratic Senators Repeatedly Made The False Claim That The Senate Republican's Tax Relief Bill Would Kick 13 Million Americans Off Healthcare

Senate Minority Leader Chuck Schumer Claimed On The Senate Floor That The Senate Bill Was "Kicking 13 Million People Off Health Insurance." "'We're kicking 13 million people off health insurance to give tax cuts to the wealthy.' - Senate Minority Leader Charles E. Schumer (D-N.Y.), in remarks on the Senate floor, Nov. 15." (Glenn Kessler, "Schumer's Claim That The GOP Is 'Kicking 13 Million People Off Health Insurance,'" The Washington Post , 11/16/17)

Senator Dick Durbin (D-IL), The Second Ranking Democrat In The Senate, Echoed The Claim That The Senate Republicans Plan Would Be "Taking Health Care Away From 13 Million Americans." "Republicans now want to pay for tax cuts for the wealthy by taking health care away from 13 million Americans." (Sen. Dick Durbin, Twitter Feed , 11/15/17)

Liberal Economist Larry Summers Said On CNBC That About 10,000 Americans Would Die As A Result Of The Republican Tax Legislation. "Economist Larry Summers said Monday that roughly 10,000 more Americans will die each year if Republican tax-reform legislation passes and includes a repeal of the ObamaCare individual mandate. 'I think this bill is very dangerous,' Summers said on CNBC's 'Squawk Box.' 'When people lose health insurance, they're less likely to get preventive care, they're more likely to defer health care they need, and ultimately they're more likely to die.'"(Brett Samuels, "Economist Larry Summers: 10,000 People Will Die Annually From GOP Tax Bill," The Hill , 12/4/17)

In Fact, Repealing The Individual Mandate, Which Is A Tax Penalty That Falls Primarily On Low- And Middle-Income Families, Does Not "Kick" Anyone Off Healthcare

The Individual Mandate Penalty Falls Disproportionately On Low- And Middle-Income Families. "Meanwhile, the Senate bill gets rid of the individual mandate penalty, which falls disproportionately on lower- and moderate-income households." (Louis Jacobson and Manuela Tobias, "The House And Senate Tax Bills, Explained," Politifact , 11/28/17)

The Washington Post Called Senator Schumer's Statement "Problematic" And Said That "Senate Democrats Need To More Accurately Describe The CBO Report." "The first part of Schumer's statement remains problematic. CBO, in estimating the impact of repealing the individual mandate, is mostly describing a voluntary action of people choosing not to buy health insurance. That's not the same as 'kicking off' 13 million people. Granted, some people may feel they don't have a choice because their premiums increased. Senate Democrats need to more accurately describe the CBO report." (Glenn Kessler, "Schumer's Claim That The GOP Is 'Kicking 13 Million People Off Health Insurance,'" The Washington Post , 11/16/17)

When Thomas A. Barthold, Chief Of Staff Of The Joint Committee On Taxation, Was Asked About The Claim That The Bill Would Kick Individuals Off Of Healthcare He Said "There's Nothing That Mandates People Give Up Insurance." "As Thomas A. Barthold, chief of staff of the Joint Committee on Taxation, put it on Wednesday when asked specifically about the 'kicked out' language during a Senate Finance Committee hearing: 'The result in terms of changes in the uninsured is a result of decisions made. There's nothing that mandates people give up insurance. It's an economic decision.'" (Glenn Kessler, "Schumer's Claim That The GOP Is 'Kicking 13 Million People Off Health Insurance,'" The Washington Post , 11/16/17)

Though The 13 Million Number Is Correct, The Republican Tax Plan Would Not Be "Kicking" Anyone Off Health Insurance Because The "CBO Says The Action [Forgoing Health Insurance] Would Be Voluntary." "In 2019, CBO estimated, 1 million fewer people would be on Medicaid and 3 million fewer people than currently estimated participating in the Obamacare exchanges. By 2025, there would be 5 million fewer people on Medicaid, 5 million fewer people in the exchanges and 3 million fewer people getting health insurance coverage from their employers. That adds up to 13 million, but CBO says the action would be voluntary. In other words." (Glenn Kessler, "Schumer's Claim That The GOP Is 'Kicking 13 Million People Off Health Insurance,'" The Washington Post , 11/16/17)

Eliminating The Individual Mandate Doesn't "Kick Anyone Off" Of Health Insurance, It Simply Gives People The Choice To Decide If They Feel The Insurance Is Worth The Cost . "Earth to Chuck: Scrapping the requirement that people buy insurance doesn't kick anyone off; it merely frees those who don't see the insurance as worth the cost from having to buy it anyway." (Editorial, "A Big Win For Tax Relief - Despite Chuck Schumer's Fact-Twisting," The New York Post , 11/16/17)

 

 


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