April 15, 2008

FACT CHECK: Republican Rhetoric on Taxes

Bush-McCain Republicans continue to mislead the American people on the Democratic record on taxes. The record is clear. Democrats have fought to lower taxes on middle-class families while Bush-McCain Republicans continue to call for more tax breaks for multi-millionaires and special interests. It’s time to check their facts.  

FICTION: Senator McConnell Claimed Democrats Are Preparing the Largest Tax Hike in History.  “At a time when the economy is slowing and Americans are paying record prices for food, gas, and health care, our Democratic friends are preparing the largest tax hike in U.S. history. Nearly three times larger than the previous record. We saw the plan last month in a budget that only one Democrat in the Senate voted against.” [Congressional Record, 4/15/08]

• FACT: Democratic Budget Proposal Does Not Include a Tax Increase. “Some are claiming that the budget plans adopted this week by the House and Senate Budget Committees — the full House and Senate are scheduled to consider their respective committee’s plan next week — would constitute “the largest tax increase in history.”  This claim is inaccurate, just as the same claim was inaccurate with regard to the budget resolution the Congress adopted last year.  Neither of the plans recommended this week by the budget committees include a tax increase.” [Center for Budget and Policy Priorities, 3/7/08]

FICTION: Senator McConnell Claimed Democrats Want to Raise Taxes on the Middle-Class by Letting All of 2001 and 2003 Tax Cuts Expire. “A blueprint that raises taxes on middle-class families by $2,300 a year. Our friends won't admit this is a tax hike. They won't say they're raising taxes. They plan to do it quietly, by letting all the recently enacted tax cuts and credits that Americans have benefited from over the past seven years to expire.” [Congressional Record, 4/15/08]

• FACT: Democratic Budget Assumes Paid-For Extension of Middle-Class Tax Cuts. “Both the House and Senate Budget Committee plans assume that current law will be amended to extend some of the expiring tax cuts (especially those affecting middle-class families) and make other changes in tax policy… They do not assume that total revenues will be increased above what is expected to be collected under current policies.” [Center for Budget and Policy Priorities, 3/7/08]

• FACT: Baucus Amendment Extends 10 Percent Tax Bracket, Child Tax Credit, Marriage Penalty Relief, Dependent Care Credit and Adoption Credit.  “First, our amendment makes the ten-percent tax bracket permanent. That’s a tax cut for all taxpayers. Second, we’re making permanent the changes to the child tax credit. That’s a $1,000 tax credit per child. This tax credit recognizes that a family’s ability to pay taxes decreases as their family size increases. Unless we act, the child tax credit will fall to $500 per child in 2010. We’re making permanent the marriage penalty relief… We’re making permanent the changes to the dependent care credit… We’re making permanent the changes to the adoption credit. Most adoptions cost more than $20,000. This provision offers a credit of $10,000 for those willing to give a child a home.” The amendment was adopted 99-1. [Senator Baucus Press Release, 3/11/08; Senate Vote #42, S. Con Res. 70, 3/13/08]

FICTION: Senator Cornyn Implied that Bush Tax Cuts Created Jobs. “At least eight million constituents of mine in Texas benefited from the tax relief that we passed in 2001. I would note that roughly that same number of new jobs is created across the country. Roughly nine million new jobs since the tax relief that we passed in 2001 and 2003.” [Congressional Record, 4/15/08]

• FACT: Job Creation Has Stagnated On Bush’s Watch. Since January of 2001, total nonfarm employment has increased just 4 percent. During President Clinton’s tenure, total nonfarm employment increased 20.7 percent. [Bureau of Labor Statistics, National Employment Statistics available at www.bls.gov]

• FACT: Under President Bush, 5.4 Million New Jobs Have Been Created, Compared to 22.7 Million Created Under President Clinton. Only 5.4 million new jobs have been created during Bush’s tenure in office. In contrast, on President Clinton’s watch, 22.7 million jobs were created – a 20.7 percent increase. [Bureau of Labor Statistics, National Employment Statistics available at www.bls.gov]

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