Pelosi Dear Colleague on Key Points on Republican Tax Reform Proposals
Dear Democratic Colleague,
Following up on my letter on Monday about the Republican tax proposals to provide massive tax breaks for the top 1 percent, I wanted to share with you four key points to use in discussing the dangers of their plans with your constituents:
- Republican plans would blow a huge hole in the national debt – at least $3 trillion over the next ten years.
- Contrary to Republican promises, the Bush tax cuts for the high end did not create jobs and only increased the deficit.
- Despite promises by the President, the Republican approach is a backdoor attempt to gut Medicare, Medicaid, Social Security and the Affordable Care Act.
- Republican proposals, like President Trump’s proposal, trigger a massive opportunity cost as well: These tax cuts would mean that critical domestic investments such as infrastructure, education and job training aren’t made, among other top priorities.
If we are to create A Better Deal: Better Jobs, Better Wages, Better Future, we must have “Not One Penny” in tax cuts for the top 1 percent. I am proud of the work of our Ranking Member Richie Neal and our Ways and Means Democrats on this critical subject. I am attaching a helpful statement from Ranking Member Neal that will help you further address this issue.
I hope this information is helpful to you. Thank you for your leadership.
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Democrats will fight for a tax code that puts American families first:
We must work together to pass comprehensive tax reform that benefits the middle class
- Our tax code is broken and in desperate need of repair, which is why we must reform our tax system.
- However, we must reject ideology and move forward in a bipartisan manner to create a tax code that is fair for middle-class Americans.
Democrats understand that tax reform must put the middle class first
- The middle class has contracted in the United States over the past two decades while those at the top have done better than ever before.
- Working families sent a strong signal to Congress last November: they’re frustrated by stagnant wages, they’re tired of a tax code that favors big corporations and those at the top, and they’re anxious about facing an uncertain financial future.
- Democrats reject the Republican fixation on trickle-down economics, which is proven to only benefit the wealthy. Democrats instead believe that the true winners of tax reform must be middle-class Americans and families.
Massive tax cuts don’t grow the economy or create jobs
- The American people don’t believe that massive tax cuts for billionaires grow the economy – time and time again, it has been proven that trickle-down economics is nothing but a myth.
- American families knows that tax reform that provides middle-class tax relief and asks corporations and the wealthiest Americans to pay their fair share is what will grow our economy, create jobs, and provide them with financial security.
Democrats will not support a tax plan that favors the wealthy at the expense of the middle class
- Democrats will oppose any tax plan that helps the rich get richer and does nothing to help middle-class families. We certainly should oppose any tax plan where the middle class carries even more of the tax burden.
Investing in American infrastructure jobs to benefit all Americans
- Use innovative financing tools, like bond financing and public-private partnerships, along with traditional financing mechanisms to create good jobs through rebuilding our infrastructure.
- Expanded infrastructure investment – the new economy needs expanded broadband, energy access, and tools for smart growth – these priorities aside from traditional transportation investment will better serve individuals and businesses grow in our new economy.