Washington, DC
U.S. Rep. Richard Neal, D-Springfield, led a series of House Democrats Thursday in calling for the rejection of a Republican-backed tax overhaul plan — legislation which he argued would raise taxes on millions of middle class Americans and is not guaranteed to bring economic growth.
Neal, the top Democrat on the tax-writing House Ways and Means Committee, continued to raise concerns about and speak out against the so-called “Tax Cuts and Jobs Act,” as he oversaw floor debate ahead of the chamber’s expected vote on the high-profile legislation.
Contending that the GOP proposal represents “the same old” argument Republicans have pushed for years, the congressman argued that lawmakers are again being asked to vote on tax legislation without certainty it will lead to enough growth to generate a return on revenue.
“Their argument is premised on one thing today and one thing only; Maybe,” he said in remarks on the House floor. “But what about maybe not?”
Neal compared the proposal to tax legislation passed in the 2000s, which he said failed to bring about the promised job increases and economic growth.
“Most projections are that we are being asked here today to participate in the following — because this is the context of the argument of the scoring — they are borrowing $2.3 trillion over 10 years for the purpose of giving a tax cut to people at the very top of our economic system,” he said.
Instead, the congressman argued, lawmakers should be investing in human capital, community colleges, vocational education, internship programs and other efforts to align Americans with the skill sets needed for the millions of current unfilled jobs.
Despite Republicans’ claims that the bill will lower taxes for the average American family, Neal further argued that its partial repeal of the State and Local Tax Deduction, as well as changes to other commonly used deductions, could actually result in a tax increase.
“What we’re being asked to do today is to raise taxes on 36 million middle class Americans … they’re going tell you today, they’re giving you this and they’re giving you that and they’re giving you this — take a look at the distribution tables. That’s the most certain opportunity for people to examine precisely what is in this legislation,” he said.
House Ways and Means Committee Chairman Kevin Brady, R-Texas, however, argued that a family of four in Neal’s district, which spans much of Western Massachusetts, as well as several other districts across the country, would see a tax cut of nearly $2,000 under the bill.
U.S. Rep. John Larson, D-Connecticut, questioned the chairman’s claim regarding projected tax savings.
A middle class family from West Hartford with a combined income of $125,000 with a mortgage and kid in college, he contended, would see a tax increase of of more than $750 in 2018, according to the Joint Committee on Tax and Department of Revenue Services in Connecticut.
“And then with that Grover Norquist kind of clawback provision that gives with one hand and takes away with the other, in 2023 that hardworking family in the middle class will see a $1,667 increase,” he added in floor remarks.
Larson further argued that states like Connecticut would essentially see double taxation under the proposed changes to the State and Local Tax Deduction.
GOP leaders have contended that their tax overhaul bill would cut taxes for low- and middle-income Americans through creating new tax brackets, increasing the standard deduction and eliminating “special interest deductions.”
The proposal, Republicans argue, should also spur job creation and economic growth by reducing the tax rate on business income to no more than 25 precent and ending incentives that reward companies for shifting jobs, profits and manufacturing plants overseas.
