WASHINGTON – House Democratic Whip Steny Hoyer (MD) released the following statement in response to an important study released today at a press conference with the Urban-Brookings Tax Policy Center and the Center for Budget and Policy Priorities (CBPP). The joint report examines the effects of the 2001 and 2003 tax cuts, illustrating that while wealthy taxpayers benefited from the tax cuts, low- and middle-income households are likely to lose significantly once costs of the tax cuts are paid for:
“Democrats warned that the irresponsible fiscal policies pursued by President Bush and the Republican Congress would have damaging consequences. This study bears out those warnings. We already knew that the Republican tax bills failed to create the millions of jobs promised and that they exploded the budget deficit and national debt, but now we see that the unfair tax cuts will punish middle- and lower-income taxpayers.
“The bill for these tax cuts will eventually come due, either in the form of increased taxes, reduced investments in our country, or the pillaging of Medicare and Social Security.
“Unfortunately, this report shows that under two likely scenarios for financing the tax cuts, the bottom four-fifths of households – those making $76,400 or less – would end up far worse off than the wealthiest households. These taxpayers will give back all of their tax cut and more. At the same time, investment in important programs that these same Americans depend on will be reduced.
“Under President Bush and the Republican Congress, the U.S. tax code has continued to balloon into a complex mess with thousands of loopholes, complicated forms, and exemptions. And giving tax cuts to working families with one hand while taking away even more with the other is not how our government should operate.
“I support tax reform to make the tax code more simple, fair and sensible so that all Americans pay their fair share, and no more than their fair share, in taxes.”
The CBPP study is available at http://www.cbpp.org/6-2-04tax.htm