Yesterday, Democrat presidential candidate Julian Castro said“we’re going to have to raise taxes” and “repeal and replace” the GOP tax cuts.” Castro made the remarks at the NAACP annual convention in Detroit, joining a long list of Democratic presidential candidates threatening to impose tax increases if elected
Here’s the key exchange:
Moderator: “How can the nation pay its bills without raising taxes?”
Julian Castro: “Well, I think that part of the answer is that we’re going to have to raise taxes. And we’re going to begin by repealing and replacing the Trump tax cuts.”
If Castro and the Democrats repealed the Tax Cuts and Jobs Act,the following would happen:
- A family of four earning the median income of $73,000 would see a $2,000 tax increase.
- A single parent (with one child) making $41,000 would see a $1,300 tax increase.
- Millions of low and middle income households would be stuck paying the Obamacare individual mandate tax.
- Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
- Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
- The USA would have the highest corporate income tax rate in the developed world.
- Taxes would rise in every state and every congressional district.
- The Death Tax would ensnare more families and businesses.
- The AMT would snap back to hit millions of households.
- Millions of households would see their child tax credit cut in half.
- Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.
According to an H&R Block report, Americans received significant tax relief from the GOP tax cuts: “overall tax liability is down 24.9 percent on average.” The report found that in Castro’s Texas, taxpayers received a 25.6% tax cut on average.
In Castro’s home state of Texas, households making the average income of $59,206 saw an average tax cut of around $1,324 according to a recent Tax Foundation report.
Even left-leaning and establishment media outlets confirm the good news arising from the Tax Cuts and Jobs Act:
- The New York Times flatly stated: “Most people got a tax cut.”
- The Washington Post stated: “Most Americans received a tax cut.”
- CNN’s Jake Tapper did his own fact check and concluded: “The facts are, most Americans got a tax cut.”
- CNN’s Jake Tapper also stated: “In fact, estimates from both sides of the political spectrum show that the majority of people in the United States of America did receive a tax cut.”
- FactCheck.org stated: “Most people got some kind of tax cut in 2018 as a result of the law.”
- FactCheck.org also stated: “The vast majority (82 percent) of middle-income earners — those with income between about $49,000 and $86,000 — received a tax cut that averaged about $1,050.
Castro now joins Joe Biden and Kamala Harris in threatening to undo the Tax Cuts and Jobs Act during their presidential campaign. If you want to stay up-to-date on their threats to raise taxes, follow atr.org/HighTaxDems.