Today, the House Republicans released their new tax plan that would lower taxes for the ultra-wealthy and add trillions to the national debt. The plan would also drastically reduce the corporate tax rate while continuing to reward companies for offshoring American jobs.
“This tax bill is a job killer. It gives hundreds of billions of dollars in tax breaks to companies that outsource jobs and profits,” said Richard Trumka, President of the AFL-CIO. “No matter how it’s spun by Republican politicians, their tax bill is nothing but giveaways to Wall Street, big corporations and millionaires, paid for on the backs of working families.”
“It’s shameless to propose cutting Medicaid, Medicare, education and infrastructure to pay for tax breaks for the 1%. History tells us, commonsense tells us and careful analysis of this tax bill tells us that these tax giveaways for the wealthy and big corporations will never trickle down to the rest of us. Real tax reform actually can put money back in the pockets of working people, but this is not that kind of plan,” Trumka added.
“The Republican tax plan is a handout to millionaires, billionaires, and big corporations that will raise taxes on working families and give corporations new incentives to send more U.S. jobs overseas,” stated Chris Shelton, President of the Communication Workers of America (CWA). “Republicans and White House staff have been working overtime to spin this deal as a ‘middle class tax cut.’ It’s not.”
Shelton explained just a few of the ways the new tax proposal will hurt CWA members and working families across the nation.
- It limits the ability to deduct property taxes and completely eliminates the ability to deduct state and local taxes.
- It gets rid of tax deductions that help families pay education expenses. It will tax directly the value of employer-provided education assistance that at least 10,000 CWA members use.
- It restricts the amount of home mortgage interest that can be deducted, hurting CWA members and working people especially in areas like California, New York, New Jersey, and other states with high housing costs.
- It wipes out the ability of families to deduct their medical expenses.
- Any employer-provided child care benefit will be taxed, and assistance from employers to help CWA families adopt a child also will be taxed.
“We cannot allow tax cuts for the wealthy to harm millions of working families. CWA and our allies are fighting back against this massive transfer of dollars from working families to the richest 1 percent,” added Shelton.
David J Cox, President of the American Federation of Government Employees (AFGE) also spoke out against the new tax plan.
“The tax plan unveiled by House leadership would mostly benefit those who need the help the least: wealthy individuals and large corporations. While the plan would lower the tax rate for many middle-income families, most would end up having more of their income taxed. And the plan would actually raise taxes on our poorest citizens.”
“Too many American workers have been suffering from stagnant wages, rising costs for health care and other essentials, and an economic system that favors the millionaires and billionaires. This plan does nothing to help them,” he concluded.
The new plan angered the Alliance for Retired Americans, a national advocacy group for seniors.
“This is the latest cruel scheme. The tax cuts for the wealthiest Americans are so massive that they plan to cut nearly $500 billion from Medicare and more than $1 trillion from Medicaid over the next 10 years to pay for them – but they will still add $1.5 trillion to the deficit,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans.
“Exacerbating the problems they are creating, the House and the Trump Administration would no longer allow Americans, including retirees, to deduct their medical expenses, including nursing home costs or out of pocket medical or dental expenses from their taxes.”
Even some on the right oppose this new tax proposal. The Concord Coalition, a self proclaimed “non-partisan, grassroots organization,” heavily funded by former Sec. of Commerce Peter G Peterson, spoke out against this new proposal calling it “fiscally irresponsible.”
“True tax reform should aim to grow the economy without growing the debt ” said Robert L. Bixby, Concord’s executive director. “This plan would move U.S. fiscal policy in a dangerous direction, openly inviting higher deficits in the face of unsustainable debt.”
The federal debt recently passed the $20 trillion mark, and the Congressional Budget Office (CBO) projects that under current law the government is on track to add more than $10 trillion to that in the next 10 years. This version of the tax plan will add at least another $1.5 trillion onto that projection.
“It is important that any changes made to this draft to accommodate interest group concerns and increase potential support be paid for by reducing tax cuts rather than increasing the number of budget gimmicks,” Bixby added.
Working people across the country should not be made to suffer to give the top 1% more tax breaks.
Former Sec. of Labor and respected economist Robert Reich said, “The proposed tax cuts are tiny and temporary. And some middle class Americans will actually get a tax increase.”
Reich calls this tax plan a “Trojan Horse” in this short video released today.
“Meanwhile, the top 1 percent will get a gigantic tax cut. The Tax Policy Center estimates that the current plan will save the bottom 80 percent between $50 and $450 in taxes per year, but that it saves each person in the top 1 percent an average of $129,000 a year. For people at the very top, like Trump himself, the tax cuts are humongous. And the corporations they own will also get a massive tax cut,” Reich added.
Working people have suffered through decades of stagnant wages, budget cuts to programs that help them and provide healthcare when they get old. Enough is enough. We must stop this massive giveaway to the wealthy 1%.