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Congresswoman Carol Shea-Porter

Representing the 1st District of New Hampshire

Shea-Porter Statement on House Republican Tax Proposal

November 3, 2017
Press Release
Bill Would Explode Deficit by At Least $1.5 Trillion

WASHINGTON, DC — Congresswoman Carol Shea-Porter (NH-01) released the following statement regarding the House Republican tax proposal:

“House Republicans are trying to rush a gift to the wealthiest corporations and individuals through Congress by misleading Americans about how their plan would really affect low- and middle-income families – just like they did with their failed health care repeal plan. This bill eliminates critical deductions that help working people, including the student loan interest and tuition deductions, and curtails the State and Local Tax deduction. It blows up the deficit, setting the stage for drastic cuts to federal spending on Medicare, Medicaid, education, infrastructure, and other crucial domestic programs. And I agree with Senator Marco Rubio that this bill’s failure to meaningfully expand refundable provisions that put money in working families’ pockets and that have strong bipartisan support, including the Child Tax Credit and the Earned Income Tax Credit, is a huge missed opportunity to grow and strengthen the middle class.

“Meanwhile, the plan is loaded with provisions to help the wealthiest. It eliminates the estate tax, which only applies to estates valued over $11 million for heirs who are joint filers and will only be paid by an estimated 5,500 Americans this year. And it slashes the corporate tax rate claimed by larger businesses while actually raising rates for many small businesses, earning it opposition from the right-leaning National Federation of Independent Business (NFIB).

“House Republicans’ tax plan isn’t just regressive – it’s enormously hypocritical. After subjecting our country to years of obstruction and brinkmanship over the debt ceiling and government funding levels as they claimed they cared about the deficit, House Republicans have now proposed a plan that would explode the deficit by $1.5 trillion or even more. They want to repeat the damage they did during the Bush era, when they drove up the national debt by $4.9 trillion. We’ve seen this rodeo before, and it was a disaster. In 2003, seeking a second round of tax cuts, Vice President Dick Cheney infamously said: ‘Reagan proved that deficits don’t matter.’ This year, House Republicans are again acknowledging that they only care about deficits when it’s politically expedient. ‘It’s a great talking point when you have an administration that’s Democrat-led,’ said Representative Mark Walker (R-NC), chairman of the hyper-conservative Republican Study Committee.

“I will never support a plan that exacerbates income inequality by giving away even more to corporations and individuals that are already favored by our tax code, and then, in the name of deficit reduction, asks working Americans to bear the brunt of draconian budget cuts to essential federal programs. In contrast to the closed process that yielded this unacceptable proposal, I will continue to advocate for an honest, bipartisan discussion on revenue-neutral tax reform that prioritizes tax relief for working families and small businesses in order to address our nation’s income inequality crisis.”

Shea-Porter has long championed tax reform that lifts burdens on working families and small businesses while cracking down on loopholes used by the wealthiest Americans and multinational corporations. In 2010, Shea-Porter voted to block the extension of Bush tax cuts for the wealthiest Americans. Throughout her time in Congress, Shea-Porter has fought for tax breaks that help working families and support education. For example, in 2013, she introduced the REPAY Supplies Act, a bill to allow K-12 teachers to claim an above-the-line deduction for classroom expenses, which became a permanent U.S. tax code provision. Earlier this year, she introduced a bill to make the above-the-line deduction for higher education tuition expenses permanent for students and families.

 

BACKGROUND

“We are concerned that the pass-through provision does not help most small businesses. Small business is the engine of the economy. We believe that tax reform should provide substantial relief to all small businesses, so they can reinvest their money, grow, and create jobs.”

-National Federation of Independent Business (NFIB) President & CEO Juanita Duggan

“While cutting the corporate rate to 20 percent would undoubtedly help some small businesses, entrepreneurs oppose lowering that rate without getting rid of corporate tax loopholes because doing so would greatly increase the deficit while continuing to put small businesses at a disadvantage. In fact, Small Business Majority’s recent scientific opinion polling found seven in 10 small business owners believe their business is harmed when big corporations use loopholes to avoid taxes. Eighty-five percent of small business owners feel the tax code unfairly benefits large corporations over small businesses, and that corporations and wealthy Americans should be required to pay their fair share of taxes.”

-Small Business Majority Founder & CEO John Arensmeyer

“The partial elimination of SALT – combined with cutting the cap on the mortgage interest deduction in half – will result in a double whammy on homeowners, raising tax bills while diminishing home values. The plan also will result in a backdoor hit to every taxpayer around the country, as it threatens essential public services, such as education, healthcare and infrastructure, that are substantially funded through state income and sales taxes. Personal income and sales taxes supply two-thirds of all state revenues.”

-Americans Against Double Taxation

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