Posted by Brandon Jarvis
The United States has the world’s largest and most diverse economy, built and powered by the indomitable American entrepreneurial spirit. Why don’t we have the world’s best, most economically competitive tax code? – Brat via RTD
Dave Brat is congressman representing parts of Henrico, Chesterfield, Richmond, Orange, Culpepper, Page, and Rappahannock. He is a member of the House Freedom-Caucus. The Freedom-Caucus is a group of extremely conservative Republicans that are anti-establishment and anti-anything Democratic. You get that impression almost immediately after beginning to read Brat’s article in the Richmond Times Dispatch.
When analyzing the effect of reducing the corporate tax rate, many fail to recognize who pays the taxes. Corporations do not ultimately pay most taxes, they simply collect them from individuals and forward that money to the government. It is the average American who actually pays corporate taxes, either through higher prices, forgone wage increases, or lower returns on their retirement plans and mutual funds that own stock in those corporations. -Brat via RTD
Brat defeated House Majority Leader Eric Cantor in the district’s 2014 Republican primary on June 10, 2014. Brat’s primary victory over Cantor made him the first primary challenger to oust a sitting House Majority Leader since the position’s creation in 1899, and is considered one of the biggest upsets in congressional history
Brat used this platform to try and convince middle class Americans that corporate tax cuts will benefit the employees. He also tried to compare the GOP Tax Reform plan to the way that China and India developed.
I witnessed this firsthand when I worked at the World Bank. We looked at the economies of developing nations like China and India. In these countries, the average annual per capita income back in the early 1990s was roughly $1,000, which was insufficient to cover even the most basic necessities. Today, that has risen to nearly $10,000, which allows over 2 billion people to meet their basic needs through the dignity of work. –Brat via RTD
Brat did include some actual data and numbers in his argument, unlike his idol Mr. Trump.
In the 1920s, tax rates were dropped from 70 percent to 25 percent, yet federal revenues rose dramatically. During the 1960s, Democratic President John F. Kennedy saw the power of supply-side tax cuts and generated 5 percent economic growth. And the Reagan tax cuts in the 1980s generated 4 percent economic growth that extended with lasting implications into the 1990s. –Brat Via RTD
To read the entire release from Brat at the Richmond Times Dispatch, go here.