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Democrats’ Tax Hikes Violate Promises Even Senator Schumer Made

November 04, 2021

In remarks from 2017 still available on his own website, the Democrat Majority Leader Chuck Schumer (D-NY) laid out principles for tax reform that Democrats are now violating:


“First, we believe that tax reform shouldn’t increase the tax burden on the middle class, and there should not be a tax cut for the wealthiest one percent of Americans, period.”


Fact: Democrats’ latest reconciliation bill expands the SALT cap, resulting in tens of thousands of dollars going to the wealthiest households, subsidizes the purchase of luxury electric vehicles, and increases the burden of taxes on lower and middle income earners, including through tobacco taxes. Even former White House economic advisers Jason Furman and Larry Summers have criticized restoring the deduction as a handout.


“Second, we believe that tax reform should go through regular order so that both Democrats and Republicans have an opportunity to craft a bipartisan package that’s good for the American people.


Fact: Democrats have held no hearings on the specifics of this reconciliation package, insisting on crafting the bill behind closed doors and out of view of the American people. Nor have they sought input from Republicans. Meanwhile, Republican tax reform was crafted over six years and 40 hearings.


“And third, tax reform should not add to the deficit. Tax reform should be deficit neutral, as determined by a non-partisan, independent scorekeeper. Republicans should not use fuzzy math or blatantly partisan estimates to provide the mirage of deficit neutrality. It should actually be deficit neutral.


Fact: According to congressional scorekeepers, there’s no question this bill will add to the deficit and relies on budget gimmicks.


Meanwhile, Republican tax reform (that Democrats opposed) achieved the highest wage gains for low-income workers, historic records in revenue, and record low unemployment.