Last night, straight down party lines, Republicans voted to give millionaires and billionaires a massive tax cut and to raise taxes on millions of hard working Americans.
“Today’s vote is a missed opportunity to deliver the tax reform we need for middle class families and small businesses,” said Congresswoman Annie Kuster. “I strongly support reform that starts with the goal of providing tax relief for those in the economy who need it most. This bill is little more than a giveaway to big corporate interests and wealthy individuals while creating losers among many middle class families who will see their taxes increase in the coming years.”
“The tax bill that House Republicans passed today seeks to steal from the vast majority of Americans to benefit the very few. This is an attack on our economic security and on the fabric of our nation,” said Congresswoman Carol Shea-Porter. “House Republicans’ tax scam is loaded with provisions to help the wealthiest: it eliminates the estate tax, which will only be paid by an estimated 5,500 super-wealthy Americans this year, and slashes the corporate tax rate claimed by the biggest businesses. Meanwhile, it raises taxes on many middle-class families, and it sets small benefits for working families to expire in five years – while making cuts for corporations permanent. And make no mistake about it: these cuts will take money away from needed national security investments at this dangerous moment in time.”
The Institute on Taxation and Economic Policy, confirmed Shea-Porter’s claim by stating, “12 percent of taxpayers would pay more in 2019 and 13 percent would pay more in 2027.” These increases unfairly hit middle class families.
This tax increase to the middle class comes primarily from the loss of “itemized deductions” that allow taxpayers to deduct things like mortgage interest, state and local taxes, student loan interest, qualifying work related expenses, and medical expenses.
“One reason for the variation across states is that taxpayers who live in places with higher state and local taxes may be more heavily impacted because those taxes would no longer be deductible on federal tax returns,” ITEP added.
“The bill the House approved today hurts older Americans now and in the future,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans. “Eliminating the medical expense deduction means it will be harder for families with high medical expenses, most of whom are seniors, to make ends meet. The House Republican tax bill axes deductions that help working people so it can give more to the wealthiest.”
“The wealthy and corporations do not need these tax breaks. The vast majority of Americans understand that trickle-down economics does not work, and they disapprove of this plan. Retirees and working Americans know who this plan helps and who it hurts. And they will remember this when they vote in 2018,” Fiesta concluded.
Shea-Porter added, “This bill eliminates the deduction for high medical expenses claimed by over 40,000 Granite Staters and the student loan interest deduction that helps people saddled with student debt. It even takes away the modest $250 above-the-line deduction I fought to make permanent for almost 20,000 New Hampshire teachers – while keeping the golf course tax loophole. The nonpartisan Congressional Budget Office says the plan would explode the deficit by $1.7 trillion, triggering automatic cuts to Medicare. We all know our tax code desperately needs reform – but those reforms need to help the working people who are already losing out under our tax code, not give even more to the wealthiest 1% and the biggest corporations.”
The AFL-CIO says the bill is a “job killer” and rewards corporations for offshoring American jobs. Under the House proposal “U.S. tax rate on offshore profits from 35% to 0%,” creating a subsidy for outsourcing jobs that would cost taxpayers “$208 billion over 10 years.”
In their letter of opposition to the proposed tax plan, William Samuel, Director
Government Affairs Department at the AFL-CIO, called the proposal the “poster child for the failed ‘trickle-down’ economic theory that has never worked and has repeatedly stuck working people with the tab for tax giveaways for millionaires, big corporations, and Wall Street.”
Republicans are trying to pull the wool over our eyes in this massive tax scam. The plan would slash the corporate tax rate from 35% to 20% and repeals the Alternative Minimum Tax on “pass-through” businesses. A couple of examples of a “pass through” business are “small businesses” like hedge funds, law firms, realty investment companies, and some large corporations like Bechtel construction (the 9th largest single owned business in the US). Without the Alternative Minimum Tax these “pass through” businesses would not be required to pay any federal taxes at all.
NBC News is reporting “Trump and his heirs potentially could save more than $1 billion overall under the GOP tax proposal that the House of Representatives passed Thursday,” though he continues to say that the plan will not benefit him.
The progressive coalition, Not One Penny, supports tax reforms but not one penny in reductions to “millionaires, billionaires, and wealthy corporations.”
“The tax bill that passed the House today is an affront to the people that our leaders in Washington claim to represent. The GOP voted to cut taxes for millionaires, billionaires, and wealthy corporations, inevitably forcing cuts to programs working families depend on like Medicaid, Medicare, public education, and Social Security. While passing the largest middle-class tax hike in a generation, the GOP said ‘no thanks’ to helping working families this Thanksgiving,” said Not One Penny spokesman Tim Hogan. “The tax proposal that passed today is wildly unpopular with a majority of Americans, and voters won’t forget those who enabled this hypocrisy. Republicans’ vote today is one that will haunt them in the weeks and months ahead.”
Over the last month, in mobilizing against Republicans’ disastrous tax plan, the Not One Penny coalition has coordinated more than a hundred events and actions across the country to hold congressional Republicans accountable for pushing tax cuts for the wealthy and well-connected at the expense of working families.
Advocates and activists continue to mobilize in opposition to Republicans’ tax scam. From hundreds gathering together at rallies alongside Leaders Pelosi and Schumer, Members of Congress, and progressive allies on November 1 and November 15, to local grassroots activity across the country, Americans will continue to resist this toxic tax plan.
“Progressive groups have come together to prevent Republicans from rigging the system even further for the wealthy and well-connected, and we will not quit until this taxpayer-funded giveaway to millionaires, billionaires, and wealthy corporations is stopped dead in its tracks. After months of activity, we continue to mobilize thousands of activists to stop Republicans attempts to raise taxes on middle-class families. Congressional Republicans should take note: we will hold you accountable for every vote you take that threatens the health and financial security of your constituents,” Hogan added.
“This bill has always been about giving massive tax cuts to the wealthy and corporations, paid for by the rest of us — and our groups have been fired up about that from the beginning,” said Ezra Levin, Co-Executive Director of Indivisible, a member of the Not One Penny coalition. “Even before this tax fight became a health care fight, we had over 100 events in every corner of this country to oppose the Trump Tax Scam. Now that Republicans have explicitly included ACA repeal, our groups are even more energized than before.”
The bill now moves to the Senate where it is sure to face stiff opposition, especially after the news that Senator McConnell added the repeal of the Affordable Care Act to their tax plan.
Should-be Republican supporters are beginning to defect from the GOP tax plan because of the disastrous impact it would have on the American economy and the harm it would have on millions of middle-class families. Opposition to the plan includes:
- Wisconsin Senator Ron Johnson, who said the plan benefits corporations over small businesses, and he finds the process being used to rush the bill “offensive.”
- Arizona Senator Jeff Flake said, “I remain concerned over how the current tax reform proposals will grow the already staggering national debt by opting for short-term fixes while ignoring long-term problems for taxpayers and the economy.”
- MaineSenator Susan Collins said, “I don’t think it’s a good idea from either a political or policy perspective.” Tennessee Senator Bob Corker said, “If I believe it’s going to add to the deficit, I’m not going to vote for it.”
- Oklahoma Senator James Lankfordsaid, “It’s one thing to be able to cut taxes. It’s another thing to say how are we going to deal with our debt and deficit.”
- Texas Senator Ted Cruzsaid, “Right now, they don’t have my vote.”
Make sure to let your Senators know how you feel about this new proposal. The Senate Democrats are unanimous against the bill but in order to ensure this bill never reaches the President’s desk we need to get at least three Republicans to vote it down.
“We need bipartisan tax reform that simplifies our tax code to help small businesses and delivers meaningful relief to middle-class families. Sadly, the tax bill approved last night is a partisan effort that doesn’t meet any of those goals,” said Senator Shaheen. “This bill would add over one and a half trillion dollars to our national debt and hurt Granite State students, seniors and working families, all to provide tax cuts to the very wealthy and large corporations. I stand ready to work with Republicans and Democrats to reform our tax code, but we need a bill that’s fiscally responsible, helps grow our economy and prioritizes the middle class.”