Fact Check: Speaker Ryan's Trickle-Down Tax Plan
"We are offering a tax reform plan…which is very responsible…You have to get the tax rate down to create more economic growth. Our plan does that."
Speaker Ryan's trickle down tax plan is "responsible?" It would "create more economic growth?" That's not what the non-partisan Tax Policy Center said. From the Washington Post:
Analysis: By 2025, 99.6% of Paul Ryan's tax cuts would go to the richest 1% of Americans
The House Republicans' proposal for tax relief could force the government to borrow trillions of dollars to continue operating and might even weaken the economy, according to a new analysis from the nonpartisan Tax Policy Center.
By 2025, when the reductions would be fully implemented, 99.6 percent of the tax cuts would benefit the wealthiest 1 percent of Americans, according to the analysis.
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In the long term…the economy would be weaker under the Republican plan because the tax cuts would force the federal government to borrow more money to continue operating. This borrowing would add to the national debt, increasing interest rates and making it harder for businesses and households to get loans, according to the forecast. By 2036, the plan would reduce gross domestic product by 0.2 percent.
Without taking into account the short-term benefits to the economy, the GOP plan would reduce federal revenues by $3.1 trillion over the first 10 years. Taking those short-term benefits into account, the reduction in revenues would be $2.5 trillion.
Speaker Ryan can spin and squirm on national television all he wants, but he can't argue with the facts: his tax plan is nothing more than a massive, deficit-exploding giveaway to the wealthiest Americans – funded on the backs of hard-working families.