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The Clinton Tax Hike Plan Revealed

- January 26, 2016

Analysis Reveals Clinton's Harmful Tax Plan Not Only Fails To Pay For Her $1.2 Trillion Spending Spree, But Costs American Jobs, Shrinks The Economy And Lowers Wages

ACCORDING TO A NEW ANALYSIS BY THE TAX FOUNDATION, CLINTON'S TAX PROPOSALS WILL SHRINK THE ECONOMY, COST AMERICAN JOBS AND REDUCE AMERICAN WAGES

The Wall Street Journal's James Freeman: "For Everyone Dissatisfied With The Obama Economy, The Clinton Agenda Promises To Make It Just A Bit Worse." "And although the Clinton tax hikes are ostensibly targeting the rich, with proposed changes such as a new surtax on high incomes and a Buffett Rule that sets a minimum tax rate on high earners, the Tax Foundation projects a decline of at least 0.9% in after-tax incomes for all taxpayers due to slower growth. So for everyone dissatisfied with the Obama economy, the Clinton agenda promises to make it just a bit worse." (James Freeman, "Hillary's $191 Billion Tax Increase," The Wall Street Journal. 1/26/16)

Clinton's Plan Will Reduce U.S. GDP By 1 Percent

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would "Reduce The Economy's Size By 1 Percent." "According to the Tax Foundation's Taxes and Growth Model, Hillary Clinton's tax plan would reduce the economy's size by 1 percent in the long run." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

Clinton's Plan Will Cost Over 300,000 American Jobs

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would Result In "311,000 Fewer Full-Time Equivalent Jobs." "The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

Clinton's Plan Will Reduce American Wages By 0.8 Percent

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would "Lead To 0.8 Percent Lower Wages. "The plan would lead to 0.8 percent lower wages, a 2.8 percent smaller capital stock, and 311,000 fewer full-time equivalent jobs. The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

WHEN ACCOUNTING FOR THE ECONOMIC IMPACT, EVERY AMERICAN WOULD SEE A LONG-TERM REDUCTION IN THEIR AFTER-TAX INCOME

When Accounting For The Economic Impact Of Clinton's Plan, Clinton's Tax Proposals Would Reduce American's After-Tax Incomes By An Average Of 1.3 Percent. "On a dynamic basis, the plan would reduce after-tax incomes by an average of 1.3 percent. All deciles would see a reduction in after-tax income of at least 0.9 percent over the long-term. Taxpayers that fall in the bottom nine deciles would see their after-tax incomes decline by between 0.9 and 1 percent." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

  • American's That Are In The Bottom 90% Of Taxpayers Would See A Reduction In After-Tax Income Of At Least 0.9 Percent Over The Long-Term. "On a dynamic basis, the plan would reduce after-tax incomes by an average of 1.3 percent. All deciles would see a reduction in after-tax income of at least 0.9 percent over the long-term. Taxpayers that fall in the bottom nine deciles would see their after-tax incomes decline by between 0.9 and 1 percent." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

ANALYSIS OF CLINTON'S TAX PROPOSALS REVEAL HER PLAN WILL ONLY RAISE BETWEEN $193 BILLION AND $498 BILLION OVER THE NEXT DECADE, AT LEAST $700 BILLION SHORT OF HER PROPOSED NEW SPENDING

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would Raise Tax Revenue By $498 Billion Over The Next Ten Years Based On A Static Analysis. "Overall, the plan would increase federal revenue on a static basis by $498 billion over the next 10 years. Most of the revenue gain is due to increased individual income tax revenue, which we project to raise approximately $381 billion over the next decade. The changes to the estate tax will raise an additional $106 billion over the next decade. The remaining $11 billion would be raised through increased taxes on corporations." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would Raise Tax Revenue By $193 Billion Over The Next Ten Years Based On A Dynamic Analysis. "However, the plan would end up collecting $191 billion over the next decade when accounting for decreased economic output in the long run." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

Clinton's Capital Gains Tax Increase Would Actually Reduce Revenue

According To Analysis By The Tax Foundation, Clinton's Capital Gains Tax Proposals Would Reduce Revenue Between $374 And $409 Billion Over The Next Decade. "We estimate that Clinton's proposal to alter the schedule for long-term capital gains would end up losing $374 billion on a static basis. The higher rate for capital gains in the medium-term (assets held between two and five years) would push people to realize their capital gains later. Overall, this would reduce the number of realizations, and even with higher rates, the policy will lose revenue. Dynamically, the policy would lose slightly more revenue ($409 billion) due to its small impact on the cost of capital." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

DESPITE PLEDGING TO PAY FOR HER SPENDING SPREE, CLINTON'S TAX PLAN WOULD NOT EVEN COVER HALF THE COST

Clinton Has Acknowledged She Is Proposing Over $1 Trillion In New Spending. QUESTION: "When you look at your spending proposals, all of which seem wonderful, free college and parental leave and things like that but those add up to a trillion dollars so I wonder two things: How high would the tax rate have to be on the people who make more than that, it's 34 percent roughly now and I don't believe you don't support a financial transaction tax but your primary opponents do so I'm trying to make those numbers work." CLINTON: "Well, what I have proposed would be about a $100 billion dollars a year so it would be a trillion over ten years." (Hillary Clinton, Remarks To The Concord Monitor Editorial Board, 12/8/15)

On The Campaign Trail, Clinton Continuously Makes The Claim That She Has Explained How She Will Pay For All Of Her $1.2 Trillion In New Spending. CLINTON: "That's where I think our greatest need is right now. But Senator Sanders and his campaign have said they're going to roll out how he would pay for all of this before the caucus in Iowa and I for one will be eager to see it, because I have been laying out how I will pay for everything." (Hillary Clinton, Remarks At Iowa State University, Ames, IA, 1/12/16)

Clinton Has Proposed A Total Of $1.203 Trillion In New Spending Programs Or Expanded Spending Over Ten Years. (Reuters, 11/29/15;The Briefing, Accessed 8/10/15; The Wall Street Journal, 9/14/15; The Associated Press , 7/27/15; The Hill, 11/12/15;The Wall Street Journal, 6/15/15;American Federation Of Teachers, 11/9/15; National Education Association, 2/2/15; The New York Times , 9/2/15; Correct The Record, Accessed 10/12/15; The Briefing¸ Accessed 11/30/15;Puerto Rico Healthcare Crisis Coalition, Accessed 12/1/15;The Briefing, 8/26/15;Federal Register, 12/12/14;The Briefing, 8/26/15;USDA, 10/2/15;The Briefing, Accessed 11/2/15; Department Of Justice, Accessed 11/30/15; The Briefing, Accessed 8/26/15;USDA, 1/12/15;The Briefing, Accessed 11/2/15;Reuters, 4/23/15;GAO, 03/14,USA Today , 12/22/15)


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