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U.S. CONGRESSMAN BILL JOHNSON Proudly Representing Eastern and Southeastern Ohio

Opinion Pieces

Time for Congress to turn to tax cuts, and dispel myths about their plan

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Washington, August 28, 2017 | comments
With the August District Work Period coming to a close, it's time for Congress to focus on pro-growth tax cuts. Unfortunately, inaccuracies about the Republicans' tax plan have spread, undermining the common-sense policies the American economy needs to grow. These myths need to be dispelled.
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Washington Examiner
By Bill Johnson
Published on August 28, 2017

With the August District Work Period coming to a close, it's time for Congress to focus on pro-growth tax cuts. Unfortunately, inaccuracies about the Republicans' tax plan have spread, undermining the common-sense policies the American economy needs to grow. These myths need to be dispelled.

Many on the Left cling to the narrative that Republicans are only supporting tax cuts for millionaires and wealthy corporations at the expense of cutting funding for programs such as Social Security, Medicare, and public schools.

This is completely false, and a gross misrepresentation of the proposed plan. The primary beneficiaries will be small businesses. Currently, 95 percent of businesses are federally taxed as pass-through entities, which means these small businesses are paying the highest marginal individual tax rateā€”up to 40 percent in some cases. The Republican tax plan would reduce their federal tax burden to 15 percent, leaving these job creators more resources for business expansion and job creation.

The high tax burden is currently the top concern among small business owners, who deserve tax relief after years of high tax rates that slow their ability to expand and hire more Americans.

Myth: Tax cuts will grow the deficit, passing along the costs and debt to our children and future generations.

For the past eight years, U.S. economic growth averaged under 2 percent annually. This slow growth hurt job creation, led to stagnant wages, and increased the national debt. We can and must do better.

The Republican tax plan will have the opposite effect on the economy -- it will take the shackles off job creators and spur the economy. The proposed plan is deficit-neutral, paving the path for a minimum of 3 percent growth. Through rate reductions and loophole eliminations, the government will receive more revenue as individual and corporate incomes rise. The Bush-era tax cuts produced the largest four-year tax revenue in American history, debunking the myth that lower taxes lead to less money for vital government programs.

Office of Management and Budget Director Mick Mulvaney said it best: "At 3 percent economic growth in a healthy American economy, if you don't like your job, you can quit because you know you can go get another job. If you get laid off, you know you can go off and start your own business. These are the opportunities that people have forgotten about."

Myth: The American public strongly opposes the Republican tax plan.

Following the release of the Republican tax plan, different opposition campaigns emerged, such as "Not One Penny" and "Stop Trump Tax Cuts." Liberal commentators claimed that the public opposes any Republican tax plan since, they claim, Republicans only pander to the rich.

Actually, the opposite is true. The overwhelming majority of Americans (61 percent) support significant middle-class tax cuts, which aligns them with the Republican tax plan. In fact, 75 percent of Americans want the tax system updated this year.

 

Cutting taxes has always been popular. Americans want to spend their money as they wish, rather than forking it over to Uncle Sam. Small business owners are no exception, as they need resources to open additional facilities and hire new employees.

 

To my colleagues in Congress, here's my message: Ignore the tax myths and noise from the far Left, and let's get the job done.

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