Last September, the non-partisan Congressional Research Service released a report showing that tax cuts for the rich — contrary to GOP orthodoxy — have minimal effect on economic growth or job creation. Instead, they simply increase income inequality. Republicans pressured the CRS to pull the report down; it was eventually re-posted with the same conclusions.
Last month, another non-partisan agency, the Congressional Budget Office, released an analysis showing that one of the GOP’s favorite corporate tax ideas would end up pushing jobs overseas. Again, instead of reexamining their ideas, Republicans are attacking the messenger:
The Congressional Budget Office is defending a recent report on how U.S. multinational corporations are taxed, after a top Republican criticized the analysis as biased. [...] “This report purports to provide an even-handed review of different policy issues related to the taxation of foreign source income,” [House Ways and Means Committee Chairman Dave] Camp (R-MI) wrote to [CBO Director Doug] Elmendorf last month.Elmendorf defended the report, saying it “presents the key issues fairly and objectively and that its findings are well grounded in economic theory and are consistent with empirical studies in this area.”
“However, a closer analysis of the report reveals that it is heavily slanted and biased in favor of one specific approach to the taxation of foreign source income – and relies heavily on sources that tend to support that conclusion while ignoring sources that support a different conclusion,” he added.
The GOP’s idea — known as a “territorial” tax system — would permanently exempt U.S. corporations from paying taxes on profits they make overseas. CBO found such a system would result in “increasing incentives to shift business operations and reported income to countries with lower tax rates.”