Claim: Congressional Republicans claim tax reform legislation would be equivalent to a $4000 raise for the average American family.
Fact: Experts are skeptical of the claim. The estimates are based on incomplete legislation and include assumptions such as tax cust will be used to increase wages. It is believed that any such increase would have many years in the future.
In its bid to sell a tax overhaul proposal, the White House has boiled down a series of complicated policy changes into an alluring talking point: The plan means a $4,000 raise for the typical family.
“The average American family would get a $4,000 raise under the President’s tax cut plan. So how could any member of Congress be against it?” tweeted White House Press Secretary Sarah Huckabee Sanders on Oct. 22.
It’s doubtful, as CNN’s Jake Tapper explains, that average household income would increase $4,000 a year if the corporate income tax is cut from 35 percent to 20 percent.
That estimate comes from the White House Council of Economic Advisers, which doesn’t specify how President Donald Trump’s plan to cut corporate taxes would increase incomes by that much each year.