Rep. Chu Statement on Republican Tax Plan
WASHINGTON, D.C. – Today, Congressional Republicans released their tax reform plan. The plan calls for a reduction in the corporate tax rate from 35% to 20%, shrinks the number of tax brackets from 7 to 3, cuts taxes on the highest earners to 35% from 39.6%, creates a new 25% business pass-through, and eliminates the estate tax and alternative minimum tax, both of which mainly effect the highest earners. Additionally, multinational corporations would no longer have to pay taxes on profits earned outside the country. Rep. Judy Chu, a member of the House Ways and Means Committee which oversees tax policy, released the following statement:
“Democrats made clear that we did not want tax reform to be just another tax cut on the rich. And President Trump agreed. But clearly not enough to act on it. This plan will make the richest richer while doing little for the rest of the country except growing the amount of national debt they have to pay off. Middle class families are not looking for a handout to the children of billionaires, which is what ending the estate tax means. Nor are they asking for corporations to get out of paying taxes on what they earn. But that’s what this bill does. For the superrich – those who managed to grow their wealth during a recession that saw everybody else’s contract or disappear – this deal is a massive handout. Meanwhile, some middle class and working families could end up paying more.
“Families need help finding good jobs or buying and staying in their homes, not a tax cut for Donald Trump and his family. They also need an honest proposal, not one that relies on the false claim that giving more money to the richest raises wages for everybody else. That has been tried and failed multiple times. If you want to help the middle class, then you do so by helping the middle class, not by giving more money to other people and claiming it will eventually get to them.
“Our priorities moving forward now are the same as when we started this tax reform debate: tax reform must be bipartisan, benefit the middle class and not increase the national deficit. This plan fails on all three counts. I hope, however, that this is just the beginning of the process and that Democrats will have the chance to improve this bill. Instead of following the intensely partisan approach that failed to produce a healthcare bill, I hope Republicans instead look to the last tax reform debate when both parties worked together to produce real results that actually grow the economy, not just line the pockets of the richest few.”