To Members of Congress:
In 2017, Congress approved historic tax cuts for families, small businesses, farmers and American job creators. Those tax cuts lowered individual tax rates for every American and reformed business taxes so our companies could compete on a level playing field with any country in the world.
The results of the 2017 tax cuts were rapid and extraordinary. In just over two years after the time that tax cuts were signed into law the U.S. added 5.3 million new jobs. The unemployment rate fell to 3.5% which was the lowest rate in 50 years. As a result of the jobs boom, American families thrived as median income reached an all-time high of $68,703 in 2019, which was a 6.8% jump from 2018.
Despite the predictions of doomsayers at the time, the economic benefits of tax cuts were not just accrued to a small segment of society. Americans from all walks of life and socio-economic backgrounds benefitted from economic growth. As a result of the unprecedented hiring growth, African American and Hispanic unemployment fell to the lowest levels in history.
Much of the job growth following tax cuts was because American businesses were now operating on equal ground with their foreign competitors and no longer faced the highest corporate tax rate in the industrialized world. Domestic companies reduced spending overseas and more money was poured into our economy. For example, foreign direct investment into the United States increased by $319 billion in 2018, a 22% increase from 2017 alone.
Without question, the 2017 tax cuts were a huge success that delivered more jobs, more income and more opportunity for working Americans and their families.
Unfortunately, today’s Senate vote to approve the so-called “Bipartisan Infrastructure Framework” begins a process to unwind those 2017 tax cuts and take away opportunities from families across the country. Democrats in Congress have repeatedly expressed their intention to tie this bill to over $3 trillion in tax increases through a partisan reconciliation process.
The infrastructure bill approved today is a carrot to induce moderate Democrats to vote for reconciliation and tax increases. Senate Majority Leader Chuck Schumer (D-NY) has made it abundantly clear that he intends for the infrastructure bill to be coupled to tax hikes. Following the announcement of a deal on infrastructure, Leader Schumer proudly announced he now had the votes for tax increases contained in the reconciliation budget. Speaker Pelosi said explicitly that the House will not consider infrastructure until tax hikes have been approved by the Senate.
Senator Joe Manchin (D-WV) made it clear that early this week that he would not support reconciliation and its attendant tax increases without a bipartisan infrastructure deal. He told reporters, “I would say if the bipartisan infrastructure deal falls apart, everything falls apart.”
While we are disappointed to see that Congress has linked infrastructure to tax increases, the Coalition to Protect American Workers will continue undaunted in our mission to preserve the benefits of the 2017 tax cuts.
We know firsthand how difficult major tax reform was to pass in Congress. We also know that the benefits of tax reform were swift and universal. If any elected Member of Congress tries to jeopardize the next American recovery in the name of higher spending, expansive social welfare programs, the green new deal and higher taxes, we will ensure that you are held accountable.