Smith, Brady Host Ways and Means Meeting to Discuss Impact of Democrats’ Tax Proposals

Washington, D.C. – President Biden's crippling tax hikes on America's middle class and Main Street will reverse the gains from the Tax Cuts and Jobs Act, according to key witnesses at a Ways and Means Republican Meeting this week. Representatives Adrian Smith (R-NE), Ranking Republican on the Select Revenue Subcommittee, and Republican Leader of the Ways and Means Committee, Kevin Brady (R-TX) hosted the meeting.

Ways and Means Republicans were joined by witnesses former Senator Phil Gramm (R-TX) and Larry Kudlow, former Director of the National Economic Council.

Rep. Smith said:

• "(TCJA) led to good, solid economic growth. Not a sugar high for our economy, but steady growth that added to wages, added to economic growth, and added to a prosperous future for so many Americans."
• "I am seriously concerned about what Democrats' proposed tax increases would do to state economies across the country, and particularly about the harm faced by our farmers, ranchers, and small businesses."

Rep. Brady said:

• "The Tax Cuts and Jobs Act lifted millions of Americans out of poverty and gave hope to so many the old tax code had left behind."
• "Democrats' socialist agenda pushes companies to countries with lower tax rates—including Communist China. President Biden's global minimum tax will make it better to be a foreign company and a foreign worker than an American one."
• "Repealing the Tax Cuts and Jobs Act is a tax increase on the middle class. Even liberals agree that under the President's tax plan, working families will see their taxes go up."

Former Senator Phil Gramm (R-TX) said:

• "If you want to destroy the American economy, destroy small business, destroy family business. There are very few family businesses that can survive these kinds of taxes [that the Democrats want]… Up to 80 or 90 percent of all family businesses would be destroyed in one generation under that tax. And under two generations, there'd be none left. What kind of family farm or ranch of any size or magnitude can survive that kind of tax at a generation change?"
• "When we cut corporate taxes, workers were huge beneficiaries. When we raise [corporate taxes] we're raising [workers'] taxes, and you're paying for it through your 401K."

Larry Kudlow, former Director of the National Economic Council, said:

• "Six trillion dollars in additional spending is tightly bound to inflation and the public is opposed to it… The Tax Foundation, the University of Pennsylvania at Wharton, and the National Association of Manufacturers/Rice University all say about the same thing—over time, we will lose 1 to 1.5 percent of civilian employment… we will lose 1 to 1.5 percent of GDP, and we will lose 1-1.5 percent of capital stock."
• "Seventy percent of the burden of the corporate tax is borne by the blue-collar middle class."
• "All these taxes leave no room for wage increases or advanced machinery or equipment, technology that increases productivity and leads to higher real wages."

Note: Watch Congressman Smith's remarks here.