I read with interest and a bit of chuckling Rep. Kevin Cramer’s editorial on the House tax bill. He and others supporting the tax bill focus on our corporate tax rate being among the highest in OECD nations, which is true, but misleading or deceitful.
A meaningful measure is the effective tax rate, what corporations actually pay. Employing that measure we’re right in the middle — 27.1 percent compared to 27.7 percent in the 30 other countries. Also, a study by the Center for Effective Government found there is no relationship between cutting corporate tax rates and job growth.
His claim that every middle-income family in the state will get a $2,287 pay raise again is misleading by apparently taking the estimated reduction in federal taxes and dividing it by the total taxpayers. As Cramer might say, it doesn’t take a degree in mathematics to know that since not everyone has the same taxable income the benefits will vary, the vast majority will go to those with high incomes and corporations while a significant number of middle-income families may see little benefit or even pay more. Fifty percent of the dollars will go to the highest 5 percent of taxpayers.
I have contacted Cramer’s office and asked that he introduce a bill that if whatever tax law is passed does not meet three measurable standards used by supporters to sell it, that legislators voting for the bill would forfeit all federal retirement benefits, such as pensions and health care. If they believe the tax bill will increase revenues, spur job growth and give each of us our extra $2,287, there should be no problem in passing this “Honesty in Politics Bill.”
Tom Pederson, Bismarck