Tax Plans Must Not Lose Revenue and Should Focus on Raising Working-Class Incomes
End Notes
[1] Paul N. Van de Water, “Tax Reform Must Not Lose Revenues — and Should Increase Them,” CBPP, April 20, 2017, https://www.cbpp.org/research/federal-tax/tax-reform-must-not-lose-revenues-and-should-increase-them
[2] House Speaker Paul Ryan said, “[W]e’re planning revenue-neutral tax reform, which means you have to take away loopholes and special interest deductions if you’re going to lower tax rates.” See Jonathan Chait, “Tax Reform Is Hard. Tax Cuts Are Easy,” New York Magazine, March 30, 2017, http://nymag.com/daily/intelligencer/2017/03/tax-reform-is-hard-tax-cuts-are-easy.html. Senate Majority Leader Mitch McConnell made a similar statement around the same time. See “Politico Playbook: Interview with Mitch McConnell,” Politico, March 9, 2017, www.pgpf.org/multimedia/politico-playbook-interview-with-mitch-mcconnell.
[3] Chye-Ching Huang and Brandon DeBot, “‘Current Policy’ Baseline Would Hide $439 Billion in Tax Cuts Worth at Least $40,000 a Year for the Top 0.1 Percent,” CBPP, August 16, 2017, https://www.cbpp.org/research/federal-tax/current-policy-baseline-would-hide-439-billion-in-tax-cuts-worth-at-least-40000.
[4] Paul N. Van de Water, “Budget and Tax Plans Should Not Rely on ‘Dynamic Scoring,’” CBPP, November 17, 2014, https://www.cbpp.org/research/budget-and-tax-plans-should-not-rely-on-dynamic-scoring.
[5] For examples of timing gimmicks considered in prior tax debates, see: Chye-Ching Huang, Chuck Marr, and Nathaniel Frentz, “Timing Gimmicks Pose Threat to Fiscally Responsible Corporate Tax Reform,” CBPP, January 13, 2014, https://www.cbpp.org/research/timing-gimmicks-pose-threat-to-fiscally-responsible-corporate-tax-reform; Nathaniel Frentz and Chye-Ching Huang, “Four Timing Gimmicks That Could Disguise Fiscally Irresponsible Individual Tax Reform,” CBPP, October 30, 2013, https://www.cbpp.org/research/four-timing-gimmicks-that-could-disguise-fiscally-irresponsible-individual-tax-reform.
[6] Brandon DeBot, “Harsh Trade-off at Core of GOP Health Bill: Keep Medicaid Expansion or Cut Taxes for Wealthy?,” CBPP, June 21, 2017, https://www.cbpp.org/research/health/harsh-tradeoff-at-core-of-gop-health-bill-keep-medicaid-expansion-or-cut-taxes-for; Brandon DeBot, “Wealthy, Corporations Still Win Big Under Senate GOP Health Bill Even With Possible Change,” CBPP, June 30, 2017, https://www.cbpp.org/blog/wealthy-corporations-still-win-big-under-senate-gop-health-bill-even-with-possible-change.
[7] Paul N. Van de Water, “Federal Spending and Revenues Will Need to Grow in Coming Years, Not Shrink,” CBPP, September 6, 2017, https://www.cbpp.org/research/federal-budget/federal-spending-and-revenues-will-need-to-grow-in-coming-years-not-shrink; Robert Greenstein, “Commentary: House Moving to Fast-Track Both Low-Income Program Cuts and Tax Cuts for Wealthy,” CBPP, June 26, 2017, https://www.cbpp.org/federal-budget/commentary-house-moving-to-fast-track-both-low-income-program-cuts-and-tax-cuts-for; Isaac Shapiro, Richard Kogan, and Chloe Cho, “House GOP Budget Cuts Programs Aiding Low- and Moderate-Income People by $2.9 Trillion Over Decade,” CBPP, August 3, 2017, https://www.cbpp.org/research/federal-budget/house-gop-budget-cuts-programs-aiding-low-and-moderate-income-people-by-29.
[8] Isaac Shapiro and Chye-Ching Huang, “Vast Majority of Americans Would Likely Lose From Trump Tax Cuts, Once They’re Paid For,” CBPP, August 17, 2017, https://www.cbpp.org/research/federal-tax/vast-majority-of-americans-would-likely-lose-from-trump-tax-cuts-once-theyre.
[9] Isaac Shapiro, Danilo Trisi, and Raheem Chaudhry, “Poverty Reduction Programs Help Adults Lacking College Degrees the Most,” CBPP, February 16, 2017, https://www.cbpp.org/research/poverty-and-inequality/poverty-reduction-programs-help-adults-lacking-college-degrees-the.
[10] Figure 3 displays after-tax profits as a share of national income. After-tax profits as a share of domestic income and after-tax profits as a share of gross domestic product display similar patterns.
[11] Tessa Berenson, “Read Donald Trump’s Speech on Jobs and the Economy,” Time, September 15, 2017, http://www.time.com/4495507/donald-trump-economy-speech-transcript/.
[12] The White House, “Remarks of President Donald J. Trump — As Prepared for Delivery,” August 20, 2017, https://www.whitehouse.gov/inaugural-address.
[13] Patricia Cohen, “Treasury Nominee Vows No Tax Cut for Rich. Math Says the Opposite,” New York Times, February 9, 2017, https://www.nytimes.com/2017/02/09/business/economy/mnuchin-rule-tax-cut.html?mcubz=0; Max Ehrenfreund, “The Trump administration says it’s not pushing a tax cut for the rich. They almost certainly are,” Washington Post, April 27, 2017, https://www.washingtonpost.com/news/wonk/wp/2017/04/27/the-trump-administration-says-its-not-pushing-a-tax-cut-for-the-rich-they-almost-certainly-are/?utm_term=.5ea45e82b419.
[14] Chye-Ching Huang and Chuck Marr, “ACA Repeal, Trump Tax Plan, and Ryan’s ‘Better Way’ Tax Plan All Fail Mnuchin Test,” CBPP, January 18, 2017, https://www.cbpp.org/research/federal-tax/aca-repeal-trump-tax-plan-and-ryans-better-way-tax-plan-all-fail-mnuchin-test.
[15] Brandon DeBot, “Harsh Tradeoff at Core of GOP Health Bill: Keep Medicaid Expansion or Cut Taxes for Wealthy?,” CBPP, June 21, 2017, https://www.cbpp.org/research/health/harsh-tradeoff-at-core-of-gop-health-bill-keep-medicaid-expansion-or-cut-taxes-for.
[16] Tax Policy Center, T16-0198 — House GOP Tax Plan, Distribution of Federal Tax Change by Expanded Cash Income Level, 2025, September 6, 2016, www.taxpolicycenter.org/model-estimates/house-gop-tax-plan-sep-2016/t16-0198-house-gop-tax-plan-distribution-federal-tax.
[17] Tax Policy Center, “The Implications of What We Know And We Don’t Know about President Trump’s Tax Plan,” July 12, 2017, http://www.taxpolicycenter.org/sites/default/files/publication/142616/2001405-the-implications-of-what-we-know-and-dont-know-about-president-trumps-plan_1.pdf. The TPC analysis estimates that the tax cuts that have been discussed by the Trump Administration or campaign would cost $7.8 trillion over the coming decade. It also finds that even when all the revenue-raising measures mentioned during President Trump’s campaign and by the Trump Administration — including many that the campaign and Administration have embraced inconsistently — are counted, the Trump tax plan presented so far would still have a net cost of $3.5 trillion over ten years.