With the midterm elections coming up, congressional Democrats are pledging to focus on affordability. They are trying to convince voters that they are the ones “fighting for an affordable America.”
That would be a major change from last year, when Democrats were fighting to raise taxes. If they had prevailed, the affordability problem today would be much worse.
Every Democrat in the House and Senate voted to make life more unaffordable. Not one Democrat in Congress supported Republican efforts to make sure the tax cuts did not expire, and not one of them voted for any of the new tax breaks for working people, including no tax on tips and overtime.
If the tax cuts had not been extended, taxes would have increased by $500 billion annually. Every personal tax rate would be higher, and taxpayers would have a 22 percent tax increase. The child tax credit and the standard deduction would have been cut in half. As many as 26 million small businesses would have been hit with higher tax rates.
These tax increases would have had a damaging effect on today’s economy. Economic growth would be slower, real wages would be lower, and the jobless rate would be higher. If Democrats had been able to block the tax cuts, we would have a much worse affordability crisis right now.
A study from Wells Fargo economists shows that the Republican tax cuts and rising wages are making life more affordable. Tax refunds this spring are expected to average nearly $4,000. Annual tax payments for families will be lower, and take-home pay will be higher.
The tax bill also included pro-growth business tax reforms and maintained the 21 percent corporate tax rate, boosting investment and growth and increasing wages and jobs. Businesses and their employees are seeing the benefits of the tax bill that every Democrat opposed.
The Republican tax cuts provide substantial tax relief to millions of American families, making life more affordable. Republicans stopped the Democrats’ tax increases and passed new tax cuts for middle-class families. They are the ones fighting for affordability for working Americans.
