Audit of Administration’s ‘Tax Cuts’ Claim for TPP Reveals Cooked Numbers and Misdirects
WASHINGTON, D.C. – The Obama administration’s claim that the Trans-Pacific Partnership (TPP) will deliver “tax cuts for 18,000 Made in America products” is wrong, a new Public Citizen analysis shows. The new Public Citizen report also addresses the real question from which the administration’s redirect to an impressive-sounding number distracts: Would cutting even 18,000 tariff lines necessarily equate to more U.S. exports, jobs or growth?
“The administration owes the public and Congress an explanation of how it cooked up what obviously is a false ‘TPP tax cut’ number, but more broadly touting a large number of tariff lines cuts misdirects attention from the real question of whether the TPP will create more American jobs or cause damage,” said Lori Wallach, director of Public Citizen’s Global Trade Watch.
The disconnect between tariff lines cut and economic gains is spotlighted by the U.S.-Korea Free Trade Agreement (FTA), which cut nearly 10,000 tariff lines. Yet, in its first three years, U.S. goods exports to Korea dropped 7 percent and the U.S. deficit with Korea surged 90 percent.