Steve Israel dances around ‘redistribution’ in Democrats’ tax plan

PHILADELPHIA — The House Democrats’ message guru touted plans to push rhetoric about championing the middle class and malign Republicans for siding with wealthy elite, but avoided using the word “redistribution” to characterize the party’s plan to increase taxes on the rich to pay for tax breaks and other benefits for the middle class.

“That isn’t the redistribution of wealth, that’s just the right priorities for a middle class that’s in decline,” New York Rep. Steve Israel, chairman of the House Democratic Policy and Communications Committee, told reporters at the caucus’ annual issues conference here.

“We are going to be talking about growth and fairness. They are not mutually exclusive,” he said.

Mr. Israel reasoned that ending corporate tax breaks or closing the so-called trust fund loophole, which is a tax on inheritance, would not redistribute wealth but simply restore fairness to the tax system.

“That doesn’t mean you want to redistribute wealth. That means if you want to make investments in the middle class,” he said. “You have to get the money from somewhere, maybe we should get it from the trust fund loophole, which is a tax shelter.”

Republican critics of the Democrat’s tax plan, which President Obama outlined in the State of the Union last week, say it will hurt small businesses and entrepreneurs and ultimately undermine job growth and workers’ paychecks.

House Democrats are gathered for three days here at the swanky Sheraton Society Hill Hotel for a conference they titled “Grow America’s Economy, Grow America’s Paychecks.”

The title reflects the messaging, policy and political strategy that House Democrats have devised to take on the Republican majorities in Congress and position themselves for a resurgence in the 2016 elections, Mr. Israel said.

“The caucus is now absolutely united around, galvanized around and mobilized around creating the contrast between the Republicans, who will consistently protect and defend corporate tax loopholes for the wealthiest, and Democrats, who are going to be out there with the gloves on, fighting every day for middle-class economic growth and opportunities for people who are not in the middle class to get into it,” he said.