The Atlanta Journal-Constitution
Cruz’s tax comment lacks important information
We unsuccessfully queried Cruz about his conclusion about higher taxes hitting only plump cats in New
York and San Francisco.
Studies of the plan President Donald Trump signed into law suggest that many wealthy Americans will see tax cuts — while some will pay more. We didn’t confirm, though, that those likely paying more live only in San Francisco and Manhattan.
An analysis by the Urban Institute-Brookings Institution Tax Policy Center, an independent group that models the effects of tax legislation, indicates that from the get-go, some taxpayers within each income bracket will likely pay more in taxes — though 95 percent will see reductions or not lose ground.
Our ruling
Cruz clearly engages in hyperbole here, though the gist of his statement holds water in that most taxpayers are projected to enjoy lower federal taxes through 2025. Also, those most likely to see their taxes go up include wealthy wage earners in high-tax states and cities.
Still, projections show that across income groups, not every taxpayer will see lower taxes, contrary to what Cruz said, and many of those who do see tax savings are likely to lose them after 2025. Also, residents of high-tax states and cities at risk of higher taxes aren’t limited to Manhattan and San Francisco.
We find this statement partially accurate but lacking in some important context. That makes it Half True.
“Every taxpayer, their taxes are going down, except rich people in Manhattan and San Francisco. Some of them, their taxes may go up.” — Sen. Ted Cruz, R-Texas, on Dec. 19 in Senate floor debate of federal tax legislation