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Republicans Ram Through Their Tax Scam

Senators were given two hours to read the 400+ page bill before being asked to vote on it.

Unless you have been living under a rock for the last three days by now you have already heard that Republicans in the Senate rammed through their wildly unpopular tax proposal that will raise taxes on the middle class and strip healthcare from 13 million people. The bill would also raise our national deficit by over $1 trillion dollars over the next ten years.

“This partisan tax bill is a giveaway to corporate special interests, not something that will help the middle class,” said Senator Maggie Hassan. “I am extremely disappointed that my Republican colleagues passed a bill that non-partisan experts have shown will raise taxes on millions of hard-working families, increase health care premiums by 10 percent annually, and add $1.5 trillion to the national debt – all to give tax cuts to corporate special interests and the wealthiest few. There is strong bipartisan support for real tax reform that would benefit hard-working people and small businesses, but this is not that bill.”

“We need bipartisan tax reform to simplify our tax code, bolster the middle class, support small businesses and create jobs. But the partisan bill forced through the Senate and passed on a party-line vote failed to address any of these critical needs,” said Senator Jeanne Shaheen. “This legislation asks middle-class families to foot the bill for massive tax breaks for the wealthy and large corporations, and will have serious ramifications for Granite Staters who rely on important tax benefits that are eliminated under this bill. I am tremendously disappointed by the secretive manner in which Senate Republicans crafted this legislation, and I’m concerned about how the middle class, seniors, homeowners, teachers and so many others will suffer as a result of this legislation. As the tax overhaul process moves forward, I’ll continue to push for bipartisanship and to protect essential New Hampshire priorities, including the state and local tax deduction and the student loan interest deduction.”

The Republican tax bill will add nearly $1.5 trillion to the national debt and make most families who earn less than $75,000 a year pay more in taxes by 2027. According to the non-partisan Congressional Budget Office, by 2019, Americans earning less than $30,000 a year will be worse off. The bill would lead to $25 billion in cuts from Medicare, harming seniors, and repeals part of the Affordable Care Act, which will raise healthcare costs and leave more Americans uninsured. Additionally, the Republican tax plan could prevent homeowners in New Hampshire from deducting state and local taxes and increase the tax burden on work-study students at colleges and universities.

“At a moment when 10,000 Americans are turning 65 every day, members of the Senate have stolen the retirement health benefits that Americans have earned over a lifetime to provide an unneeded windfall to the top 1%. They seem determined to create a retirement crisis that will take decades to reverse,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans.

“The GOP tax bill that passed the Senate by one vote is nothing but an attack on America’s workers,” said Richard Trumka, President of the AFL-CIO. “We will pay more, corporations and billionaires will pay less. It’s a job killer. It gives billions of tax giveaways to big corporations that outsource jobs and profits.”

“President Trump said that he wanted to lower taxes for everyone as a Christmas gift to America, but this bill is simply a lump of coal to working families across the country. The only real gift is the major tax giveaways to Wall Street, big corporations and the super-rich, when what our country needs is investment in our schools and infrastructures that creates jobs,” Trumka added.

“In voting to give a tax break for millionaires, billionaires, and wealthy corporations, Senate Republicans have made an enemy for themselves in their own constituents,” said Tax March Executive Director Nicole Gill. “As a result of this monstrous bill, 87 million middle-class families would pay more in taxes so that Republicans can reward their rich donors with even more unearned tax breaks. Not only would working families see their own taxes go up, this bill threatens massive cuts to Medicaid, Medicare, and critical funding for programs that hardworking Americans rely on. Senators who voted for this scheme should be ashamed and will not avoid the repercussions from voters – we won’t forget.”

“The bill passed today is nothing more than a giveaway to the richest households and corporations, period,” said Josh Bivens, of the Economic Policy Institute. “It will raise taxes on many low- and moderate-income households, and the deficits it will leave in its wake will be used to attack Social Security, Medicare, and Medicaid—a strategy clearly telegraphed by both the Republican budget resolution from last month as well as by Senator Rubio more recently. Besides lying about who would benefit most directly from the tax cut, defenders of today’s bill have also lied about the trickle-down benefits that will accrue to workers in the form of higher wages. Simply put, this bill will not raise wages for typical workers—but it will deny health insurance to 13 million workers, a measure Senate Republicans included to help contain the overall cost of giving large tax cuts to rich households and corporations. This bill is a scam through-and-through.”

For years Republicans in the Senate have used the “Debt and Deficit” as a way to justify their votes against a variety of bills. They even shut down the government for almost two weeks because they refused to raise the debt ceiling. Yet, all of those issues seemed to disappear as they voted to increase the national debt by over $1 trillion dollars.

The Concord Coalition is a right-leaning government watchdog group that is focused on reducing the national debt and opposes these cuts.

The Concord Coalition said today that the tax legislation considered by the Senate is based on flawed economics, reckless fiscal policy and blatant budget gimmickry. It would worsen the nation’s fiscal outlook and introduce new complexities in the tax code at a time when policymakers should be aiming to lower deficits and make the tax code more efficient.

“This is the wrong bill at the wrong time,” said Robert L. Bixby, Concord’s executive director. “Like its counterpart in the House, the Senate’s tax bill is based on the flawed premise that another trillion dollars or more of new debt is needed to spur higher economic growth.”

He added: “The economy does not need short-term stimulus from a major tax cut at this time. And over the long term, adding more debt to the already unsustainable path of current fiscal policies would act as a restraint on future growth. Revenue-neutral tax reform would not have this problem.”

Because the Senate version and the House version are different, a committee of conference will be created to iron out the details before it must come back for an “up and down” vote.

Are you angry yet? Tax “reform” will be followed by Medicare, Social Security “reform”

Late last night, the Senate passed its version of the tax cut bill.  Next step? According to GOP leaders, it will be “entitlement reform.” Which includes the Social Security and Medicare benefits you have been paying for – with every paycheck – since you started working. Just like they’ve been talking about since the Bush tax cuts.

Congress won’t have to do anything, to cut Medicare by $25 billion next year.  If President Trump signs a final version of this bill, according to the Congressional Budget Office, it will create a budget deficit that will trigger $25 billion in automatic cuts to Medicare.

And if “chained-CPI” is still in the bill, Congress won’t have to do anything to cut Social Security benefits, long term. “Chained-CPI” is a way of calculating inflation that incorporates a ratcheting-down of benefits. It assumes that senior citizens who can’t afford steak don’t need a cost of living increase because they can buy chicken, instead. And those who can’t afford to buy chicken can buy tuna. And if they can’t afford tuna…  It’s the cat food thing. (Read our 2013 post about chained-CPI here.)

BUT they’re already planning more cuts. Because at some point, our government is going to have to do something about our national debt. Which has quadrupled since the Bush tax cuts.  Which is now equal to more than $170,000 per taxpayer. Which has increased by $745 billion – almost 4% — since the debt limit was suspended on September 8th.  Which was only 11 weeks ago.

Having a hard time wrapping your head around what you just read?  Let’s try it again.

On September 8, 2017, Congress suspended the debt limit.  Since then (only 11 weeks), the debt has grown by more than $745 billion. And Congress is cutting taxes in order to add $1.5 Trillion to that number.

It’s pretty clear that Congress is creating a “debt problem” that they’re going to “solve” by going after Social Security and Medicare.

Newsweek: Republicans will cut Social Security and Medicare after tax plan passes, Rubio says
Forbes: How the GOP tax plan scrooges middle class, retired and poor
Washington Post: GOP eyes post-tax-cut changes to welfare, Social Security and Medicare

This isn’t a surprise.  Back in 2004, Federal Reserve Chairman Alan Greenspan suggested cutting Social Security and Medicare benefits to pay for the cost of the Bush tax cuts.

Looks like that’s still the strategy. Here’s where it goes from being “strategy” to “theft.”

Since 2012, most workers have been paying more into the Social Security system than they can expect to receive in benefits.

People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.

Back in 2001, 57% of Americans wanted to roll back the Bush tax cuts to protect (what was then) the budget surplus. A whopping 92% wanted to prevent Congress from using Social Security for any other purpose. But at last report, about $3 trillion of the national debt is now owed to the Social Security system.

So… if you’ve already put more in to the Social Security system than you can expect to get out of it – and Congress wants to put even more tax cuts on the nation’s credit card – and Congressional leadership wants to pay down that extra debt by cutting Social Security… that means the money to pay for these tax cuts is coming out of your pocket.

Are you angry, yet?

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Public Citizen reports that at least 6,243 Washington lobbyists have been working on this tax bill.  That’s almost 12 lobbyists per legislator! Read about some of the last-minute add-ons – including an amendment that exempts a college in Michigan and a carve-out for cruise ships docking in Alaska – here. Wondering who benefits from this tax bill? Read about analyses done by the Congressional Budget Office and the Joint Committee on Taxation here.

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If you want to contact your elected federal officials about this, please do so on your own time and using your own personal phone/email. (Most employers prohibit using work time or resources for this sort of thing.)

Contact information for President Trump is available here.

You can find contact information for your two US Senators here.

You can find the phone number and website for your US Representative here.  (If you don’t know who your Representative is, check here.)

Leo W Gerard: Workers Wary of GOP Flimflam Tax Scam

Congressional Republicans are selling a trickle-down tax scam times two. It’s the same old snake oil, with double hype and no cure.

A single statistic explains it all: 1 percent of Americans – that is the tiny, exclusive club of billionaires and millionaires – get 80 percent of the gain from this tax con. Eighty percent!

But that’s not all! To pay for that unneeded and unwarranted red-ribbon wrapped gift to the uber wealthy, Republicans are slashing and burning $5 trillion in programs cherished by workers, including Medicare and Medicaid.

Look at the statistic in reverse, and it seems worse: 99 percent of Americans will get only 20 percent of the benefit from this GOP tax scam. That’s not tax reform. That’s tax defraud.

Republican tax hucksters claim the uber rich will share. It’s the trickle down effect, they say, the 99 percent will get some trickle down.

It’s a trick. Zilch ever comes down. It’s nothing more than fake tax reform first deployed by voodoo-economics Reagan. There’s a basic question about this flim-flammery: Why do workers always get stuck depending on second-hand benefits? Real tax reform would put the rich in that position for once. Workers would get the big tax breaks and the fat cats could wait to see if any coins trickled up to jingle in their pockets.

House Speaker Paul Ryan claimed Republicans’ primary objective in messing with the tax code is to help the middle class, not the wealthy. Well, there’s a simple way to do that:  Give 99 percent of the tax breaks directly to the 99 percent.

The Republican charlatans hawking this new tax scam are asserting the pure malarkey that it provides two, count them TWO, trickle-down benefits. In addition to the tried-and-false fairytale that the rich will share with the rest after collecting their tax bounty, there’s the additional myth that corporations will redistribute downward some of their big fat tax scam bonuses.

A corporate tax break isn’t some sort of Wall Street baptism that will convert CEOs into believers in the concept of paying workers a fair share of the profit their labor creates.

Corporations have gotten tax breaks before and haven’t done that. And they’ve got plenty of cash to share with workers right now and don’t do it. Instead, they spend corporate money to push up CEO pay. Over the past nine years, corporations have shelled out nearly $4 trillion to buy back their own stock, a ploy that raises stock prices and, right along with them, CEO compensation. Worker pay, meanwhile, flat-lined.

In addition to all of that cash, U.S. corporations are currently sitting on another nearly $2 trillion. But CEOs and corporate boards aren’t sharing any of that with their beleaguered workers, who have struggled with stagnant wages for nearly three decades.

Still, last week, Kevin Hassett, chairman of the President’s Council of Economic Advisers, insisted that the massive corporate tax cut, from 35 percent down to 20 percent, will not trickle, but instead will shower down on workers in the form of pay raises ranging from $4,000 to $9,000 a year.

Booyah! Happy days are here again! With the median wage at $849 per week or $44,148 a year, that would be pay hikes ranging from 9 percent to 20 percent! Unprecedented!

Or, more likely, unrealistic.

Dishonest, incompetent, and absurd” is what Larry Summers called it. Summers was Treasury Secretary for President Bill Clinton and director of the National Economic Council for President Barack Obama.

Jason Furman, a professor at the Harvard Kennedy School who once held Hassett’s title at the  Council of Economic Advisers, called Hassett’s findings “implausible,”  “outside the mainstream” and “far-fetched.”

Frank Lysy, retired from a career at the World Bank, including as its chief economist, agreed that Hassett’s projection was absurd.

Hassett based his findings on unpublished studies by authors who neglected to suffer peer review and projected results with all the clueless positivity of Pollyanna. Meanwhile, Lysy noted, Hassett failed to account for actual experience. That would be the huge corporate tax cuts provided in Reagan’s Tax Reform Act of 1986.

Between 1986 and 1988, the top corporate tax rate dropped from 46 percent to 34 percent, but real wages fell by close to 6 percent between 1986 and 1990.

Thus many economists’ dim assessment of Hassett’s promises.

The other gob-smacking bunkum claim about the Republican tax scam is that it will gin up the economy, and, as a result, the federal government will receive even more tax money. So, in their alternative facts world, cutting taxes on the rich and corporations will not cause deficits. It will result in the government rolling in coin, like a pirate in a treasure trove. That’s the claim, and they’re sticking to it. Like their hero Karl Rove said, “We create our own reality.”

Here’s Republican Sen. Patrick J. Toomey, for example: “This tax plan will be deficit reducing.”

If the Pennsylvania politician truly believes that’s the case, it’s not clear why he voted for a budget that would cut $473 billion from Medicare and $1 trillion from Medicaid. If reducing the tax rate for the rich and corporations really would shrink the deficit, Republicans should be adding money to fund Medicare and Medicaid.

While cutting taxes on the rich won’t really boost the economy, it will increase income inequality. Makes sense, right? Give the richest 1 percenters 80 percent of the gains and the remaining 99 percent only 20 percent and the rich are going to get richer faster.

Economist Thomas Piketty, whose work focuses on wealth and income inequality and who wrote the best seller “Capital in the Twenty First Century,” found in his research no correlation between tax cuts for the rich and economic growth in industrialized countries since the 1970s. He did find, however, that the rich got much richer in countries like the United States that slashed tax rates for the 1 percent than in countries like France and Germany that did not.

This Republican tax scam is a case of the adage that former President George W. Bush once famously bungled: “Fool me once, shame on you. Fool me twice, shame on me.”

Republicans, like P. T. Barnum, think workers are fools who can be continually conned. But they aren’t. They’ve been duped too many times to believe this new GOP scam will serve anyone but the rich.

What Politicians’ Votes Say About Their Values

In politics, there are some things that everyone is for—like good schools, low taxes for the middle class, and good public services.

When politicians vote, we see where their values truly lie.

The New Hampshire legislative session that ended in June was no different.  On many issues we saw a huge gulf between the opening rhetoric, and the actual votes–and a stark contrast between the Republicans and the Democrats.

Public schools

In Concord, everyone speaks highly of the public schools.  Everyone’s favorite this year was state funding for full-day kindergarten.  But when it came time to fund kindergarten, the differences became clear.

The Republicans wrote a budget that provided an additional $1 million of tax dollars a year for charter schools.  Full-day kindergarten will receive no state tax dollars.  Instead, we will have Keno (video slot machines) to fund kindergarten.  The Lottery Commission estimates we will realize $9 million a year from Keno—but at what cost in gambling addiction, personal bankruptcies, and broken homes?

The basic amount of state aid to the public schools is about $3600 per student per year.  Charter schools receive almost twice as much—about $6600 per student—but none of it is from the local property tax, which allows charter schools to present the fiction that they don’t cost taxpayers anything.

Tax cuts

Politicians love tax cuts.  It’s their chance to play Santa Claus.  At the end of the legislative session, we find that some taxpayers are ‘naughty’ and get a lump of coal, while some are ‘nice’ and get a tax cut.  This year was no different.

At the beginning of the session, it was proposed that the State resume paying part of the retirement system cost for schools and municipalities.  The goal was to provide a $40 million tax cut to property taxpayers.  The Republicans in the legislature said ‘no way.’

Tax cuts for big business were another matter.  The state budget includes a big cut in the Business Profits Tax.  This is a tax that virtually no small business pays, because they pay their profits out as salaries to their owners, reducing their taxable income to zero.  70% of the cut will go to approximately 500 of our largest, most-profitable businesses, particularly national and multinational firms.

Score this as big business 1, property taxpayers 0.

Setting Budget Priorities

In every budget process, wants exceed revenue.  When budget priorities are set, it reveals the values of the budget writers.

During each budget cycle in Concord, Republicans treat it like a morality play, where they tell the Democrats that they have to live within their allowance.

The reality is that the Democrats go to bat each year for the property taxpayers, the poor, the disabled, the University System, the sick and the elderly, while the Republicans go to bat for big business and the wealthy.  Most of the time, the Republicans win.

Every budget year, Republicans say we do not have enough revenue to make UNH affordable, eliminate the waiting list for the severely disabled, restore our community mental health system, fund Medicaid, or provide property tax relief.

And every budget year, Democrats ask why the wealthy are not paying their fair share of taxes.  New Hampshire has one of the most regressive tax systems in the nation.  On average, the poor pay over 8% of their incomes in tax.  The middle pays about 6%.  The top pays about 3%.

Our tax system is regressive because New Hampshire relies on the property tax for over two-thirds of all state and local tax revenue.  Since 2000, the legislature has repeatedly down-shifted obligations to the local level.  Meanwhile, the total of property taxes collected in NH has doubled.  Very few people have seen their incomes double during that same time period.

Representative Dick Ames, Democrat of Jaffrey, proposed a reform of the Interest and Dividends tax that would have reduced the tax on small savers, and broadened the tax to include capital gains.  The State would have realized about $100 million in new revenue–mostly from our wealthiest residents.  Predictably, the bill failed on a nearly party-line vote.  And the underfunding of the safety net, the short-changing of higher education, and the down-shifting to the property taxpayer will continue for another two years.

Legislating is about making choices.  Our Republican legislature has made clear that it values charter schools more the public schools; thinks businesses need a tax cut, but homeowners do not; and would rather underfund UNH and the safety net, than ask the wealthy to pay their fair share of taxes.

It’s all about choices.  You get to make your choice next year.

Mark Fernald is a former State Senator and was the 2002 Democratic nominee for Governor.  He can be reached at mark@markfernald.com.

100-Plus Organizations Urge Congress to Reject Giant Tax Loophole for Offshoring and Tax Avoidance

Republican Proposal for a “Territorial Tax System” Would Encourage Corporations to Send Jobs Offshore and Avoid Paying Taxes

(Washington, D.C.) Today, more than 100 organizations sent a letter urging members of Congress to reject a proposal that would allow U.S. multinational corporations to pay little to nothing on their offshore profits.

President Trump and Republican leaders in Congress included this proposal for a “territorial tax system” in the tax framework they unveiled last week.

The letter says, “This is an incredibly bad idea. Ending taxation of offshore profits would give multinational corporations an incentive to send jobs offshore, thereby lowering U.S. wages. It would also be a giant loophole for corporations to use accounting gimmicks to move their profits to tax havens, resulting in the loss of billions of dollars in tax revenue for the United States.”

“I’ve got to hand it to them. They’ve really outdone themselves this time. It must take a lot of effort to come up with an idea this bad,” said AFL-CIO President Richard Trumka. “It takes a lot of nerve to propose tax incentives for offshoring and then try to fool people into thinking you’re doing the exact opposite. Up is down, black is white.  What a con job.”

“Already, the U.S. encourages tax avoidance by allowing U.S. corporations to indefinitely defer taxes on profits that they book offshore. If the United States moves to a territorial tax system, multinational companies would have even greater incentive to engage in accounting tricks and move their profits to countries with zero or single-digit corporate tax rates. Corporate bosses would win while the rest of us would be left to pick up the tab,” said Alan Essig, executive director, Institute on Taxation and Economic Policy

“This scheme is a massive tax cut for wealthy corporations, that puts Main Street businesses and domestic companies at a terrible disadvantage,” said Frank Clemente, executive director, Americans for Tax Fairness. “We must continue to fully tax the profits U.S. corporations make offshore. If they pay less U.S. taxes on offshore profits than they pay now, or if they pay no taxes, they will have even more incentive to send jobs offshore and shift profits to tax havens to avoid paying their fair share.”

“It is, quite simply, the largest offshore loophole in the history of our tax code,” said Gary Kalman, Executive Director of the Financial Accountability and Corporate Transparency (FACT) Coalition. “While hard to fathom, the proposal creates new and greater incentives to book profits offshore. When you get past the rhetoric, they propose a near zero percent tax on all profits moved offshore. Other countries have tried this, failed, and are now struggling desperately to fix it. How do you look at their failure and say ‘let’s do the same?’”

For more details on why a “territorial” tax system rigs the rules of the economy in favor of multinational corporations and against working people, see this fact sheet from the Institute on Taxation and Economic Policy (ITEP).

Trump Proposes $5 Trillion In Unfunded Tax Cuts

President Donald Trump delivers the Address to Congress on Tuesday, February 28, 2017, at the U.S. Capitol. This is the President’s first Address to Congress of his presidency. Official White House Photo by Shealah Craighead

As if our tax system was not already rigged to benefit the top 1%, here comes President Trump to take more money from working families and give it straight to the people at the top.

Trump unveiled his “new” tax reform bill that is nothing new. It is the same failed trickle down tax policy that has hurt working families for more than 30 years. This new tax plan is nothing more than a massive giveaway to the wealthiest Americans and big corporations.

Richard Trumka, President of the AFL-CIO called the new tax plan a “con game against working people.”

“The tax plan Republicans put out today is nothing but a con game, and working people are the ones they’re trying to con. Here we go again. First comes the promise that tax giveaways for the wealthy and big corporations will trickle down to the rest of us. Then comes the promise that tax cuts will pay for themselves. Then comes the promise that they want to stop offshoring. And finally, we find out none of these things is true, and the people responsible for wasting trillions of dollars on tax giveaways to the rich tell us we have no choice but to cut Medicaid, Medicare, Social Security, education and infrastructure. There always seems to be plenty of money for millionaires and big corporations, but never enough money to do anything for working people.”

The Americans for Tax Fairness estimates that Trump’s tax plan would rip a $5 trillion dollar hole in our federal budget and would drastically increase our national debt.

“The resulting jump in the deficit threatens funding of Social Security, Medicare, Medicaid, public education and other vital services,” Americans for Tax Fairness wrote.

“This tax plan will be a slow-motion disaster that hurts our country for years to come,” said Lee Saunders, President of AFSCME. “It is deeply irresponsible to let even a penny more in tax cuts go to the wealthy and corporations, while working people are barely keeping their heads above water, our roads and bridges are crumbling, our children face steep inequalities, and our seniors struggle to retire with dignity.”

“Our nation faces challenges that are not shared equally. The super-wealthy and corporations can and must shoulder their fair share of the burden. The plan announced today will further rig the system against working families and our communities by strip-mining the public services we all rely on. We cannot continue to put the interests of the rich and powerful before the interests of our country,” added Saunders.

“Everyone complains about taxes, but most of us want a tax code that is fair. Donald Trump’s tax proposal just makes it worse,” said AFT President Randi Weingarten.

The plan would reduce the number of tax brackets from seven down to three and slash the corporate tax rate in half. These cuts would only benefit large corporations, hedge fund managers, millionaires and billionaires like Donald Trump. 40% of the proposed tax cuts would go directly to the top 1% of Americans.

“The idea that this plan would help average Americans instead of the wealthy and big corporations has been a hoax all along,” said Frank Clemente, executive director, Americans for Tax Fairness. “This isn’t ‘tax reform,’ it’s just a big giveaway to millionaires and corporations, and it won’t ‘trickle down’ to the rest of us. It won’t help small businesses, but it will help Wall Street hedge fund managers and real estate moguls like Donald Trump. This plan will not lead to robust job creation or economic growth, but its eye-popping cost will lead to deep cuts in Social Security, Medicaid, Medicare, and public education that will leave working families in the cold.”

(The Americans for Tax Fairness have a full rundown of the proposed tax cuts and tax increases resulting in a nearly $5 trillion dollar deficit.)

Progressive groups are already pushing back against the Republican agenda to cut taxes on the wealthy at the expense of working people. Not One Penny, a coalition of progressive groups including MoveOn, Indivisible, and the Working Families Party created a petition opposing these tax cuts.

The petition states:

“I pledge to oppose any effort to cut taxes for the wealthy and well-connected. Not one penny in tax cuts for millionaires, billionaires, and wealthy corporations.”

All across America, working people are still struggling to pay their bills and have given up on the idea of saving for the future. We do need real tax reform, not handouts to the wealthiest among us. We need to close the loopholes that allow corporations to pay nothing in taxes while small businesses are paying upwards of 30%. We need a tax plan that puts money back in the hands of working families who need it not millionaires and billionaires who are already failing to pay their fair share.

“The president’s plan seems tailor-made to benefit himself and his businesses, but we don’t know because he hasn’t released his taxes. Trumpcare was defeated because millions of Americans rose up to stop attacks on the most vulnerable. Unless the president is prepared to work with Democrats and sensible Republicans on real tax reform that improves working people’s lives and ends handouts for the wealthy and corporations, today’s Trumptax plan will either catastrophically hurt working families or, hopefully, suffer the same fate as Trumpcare,” added Weingarten.

Tax Giveaways For The Wealthy, While Kids Get Funding For Education Through KENO

This is why we cannot have nice things.  

Our screwed up system of state and local taxes creates many problems for state legislators when crafting our bi-annual state budget.  Our current system means we have to rely on the “sin taxes” aka booze and smokes.  Now they are basing funding for kindergarten on Keno sales.

Thats right. Instead of funding full day kindergarten as both Governor Sununu and Executive Councilor Colin Van Ostern campaigned on, Republicans have agreed to partially fund full day kindergarten with revenue from a new Keno lottery game.  We are basing funding for the education of our children on Keno.

The Concord Monitor reports:

The amendment approved by a committee of conference would provide an additional $1,100 per full-day kindergarten student and would legalize the online lottery game keno to help pay for it. The plan also guarantees the funding even if keno revenues aren’t enough to cover the grants.”

The $1,100 additional adequacy grant does not cover the costs of full day kindergarten as the Union Leader explains.

The state currently offers school districts a grant of $1,800 per student for kindergarten enrollment. That’s half the so-called “adequacy grant” of $3,600 for students in grades 1-12, assuming half-day kindergarten programs.

Throughout the budget process Republicans have been saying we cannot afford to cover our proposed expenses and pay for full day kindergarten, but there is plenty of money to drop the Business Profits Tax.

Jeff Woodburn the Democratic Minority Leader in the NH Senate said:

Senate Democrats have been leading on Kindergarten for years, and we are glad Governor Sununu has at least attempted to follow our example. But, today’s failure to support full-day kindergarten like any other grade while giving even more tax cuts for the wealthy elite is a major disappointment and once again demonstrates Governor Sununu’s failure to lead. The fact that Governor Sununu could not get the Republican House to compromise raises real questions about the Governor’s commitment to full-day kindergarten and shows, once again, his commitment to partisan politics.”

“Just like his broken campaign promises to lead on reducing tuition at our colleges and universities and on family and medical leave insurance, this kindergarten shell game demonstrates Governor Sununu’s desire to put partisan politics ahead of meaningful progress for everyday Granite Staters.”

It is very clear that Republicans in the Legislature do not care about working people and children as they refuse to make full day kindergarten mandatory and fail to fully fund full day kindergarten.  They are more than willing to slash taxes on “business owners” at the expense of the needs and priorities of the state.

I do not want to hear any Republican say that we cannot afford  to fix our crumbling roads and bridges, fully fund full day kindergarten, invest in repairs for local schools, or that we cannot afford to expand rail service into NH until they replace the tax giveaways in this budget.

New Petition To Uphold The Governor’s Veto Of This Reckless Budget

Sign the Petition (1)

Governor Hassan vetoed the Republican budget saying;

“I have vetoed the budget passed by the legislature because it is unbalanced, makes false promises about what it funds, and gives unpaid-for tax giveaways to big corporations, many based out-of-state, at the expense of critical economic priorities, including higher education, health care, public safety and transportation. The long-term impact of these unpaid-for corporate tax cuts will create a more than $90 million hole in future budgets, further eroding our ability to encourage economic growth.”

We must uphold Governor Hassan’s veto and end the unfunded tax giveaways written into this unbalanced budget.

We are calling on all of our elected representatives to vote and uphold Governor Hassan’s veto and force the leadership to work together and find a compromise that will keep New Hampshire moving in the right direction.

The Petition reads:

We believe that New Hampshire is moving in the right direction and this reckless budget will only take us backwards. We must end these unfunded tax giveaways to big business that will blow a $90 million dollar hole in our state budget.

We call on you, our elected representatives, to uphold Governor Hassan’s veto and work together to properly fund the needs and priorities of our great state. Priorities like rebuilding our crumbling roads and bridges, investing in our public schools, and providing the needed funds to combat the growing heroin epidemic.

Please sign the petition below or click here to sign.

 

  When you are done signing the petition, please send a letter to you state reps asking them not to fall victim to the “Kansas Tax Cut Trap” that will blow a $90 million dollar hole in our state budget. Click here to send your letter or fill out the form below.

 

 

ICYMI: NH1 Reports on Former Kansas Budget Director Warning of Perils of Unpaid-For Corporate Tax Cuts

Concord, N.H. – As Chris Sununu and Republicans in the legislature continue to push their plan to blow a $90 million hole in the budget for unpaid-for tax cuts for big corporations, NH1 News reported on comments from former Kansas State Budget Director Duane Goossen warning of the negative impact of unpaid-for tax cuts.

Goossen warned that after Kansas implemented massive, unpaid-for tax cuts, the state is now “falling behind its neighbors in economic growth” and “has moved into a cycle of perpetual budget crisis.”

 

Click here for video of Goosen’s comments or see transcript below:

GOOSSEN: “Kansas is falling behind its neighbors in economic growth. The economic benefits that were touted at the beginning have not proved to be true and Kansas has moved into a cycle of perpetual budget crisis.”

NH Fiscal Policy Institute Highlights Failures Of Kansas’s Tax Cuts

Kansas Tax Cuts: Lessons for New Hampshire
Offers Legislators Context for Considering Impact of Proposed Business Tax Cuts 

Concord NH – In advance of next week’s vote on the state budget, more than 50 legislators gathered in Concord today to hear a first-hand account of the wide-reaching impacts of Kansas tax cuts and to consider the consequences of similar efforts to reduce taxes here in New Hampshire. Hosted by the New Hampshire Fiscal Policy Institute, “Kansas Tax Cuts: Lessons for New Hampshire” sought to help policymakers develop a deeper understanding of the effect tax cuts are having on families and communities in Kansas and to demonstrate the failure of tax cuts to produce promised economic growth, the main argument offered in favor of lower business tax rates in New Hampshire. 

“Throughout the debate over business taxes, we’ve been told tax cuts are necessary to make New Hampshire more competitive and to boost its economy. Yet, as Kansas’ experience makes clear, tax cuts are no guarantee of job growth. Choosing tax cuts over investments in education and infrastructure will lead the state into a downward spiral,” said Jeff McLynch, executive director of the New Hampshire Fiscal Policy Institute. 

The event featured a panel discussion and presentation by Kansas Center for Economic Growth Executive Director Annie McKay and Senior Fellow Duane Goossen. Mr. Goossen was the Kansas state budget director from 1998 to 2010 and served seven terms in the Kansas House of Representatives.

“A misguided plan to cut taxes for Kansas businesses in the name of job growth resulted in a tax shift, which increased taxes on hardworking Kansas families. Lawmakers promised Kansans ‘pro-growth’ tax policy, but all this plan delivered was an increase in the number of families struggling to make ends meet,” said Annie McKay. 

Proponents of business tax cuts suggest that business taxes in New Hampshire are out of line with other states and that tax cuts are needed to make the Granite State more competitive. The budget plan approved by the legislature in June included multiple changes to New Hampshire’s business tax structure, changes that would drain more than $20 million out of the FY 2016-2017 budget and more than $100 million out of each future budget, once fully implemented. Governor Hassan vetoed the budget in part due to the impact this revenue loss would have on future budgets.

“Kansas went from annual budget surpluses to massive deficits as a result of these tax cuts, which were promoted as necessary to support businesses and to increase economic growth,” said Duane Goossen. “These tax cuts left the state unable to balance its budget, led to a credit downgrade for the state, and forced increases in other taxes and fees for average citizens. What’s more, Kansas’ job growth rate continues to lag the region, and businesses and families have left the state due to its lack of investment in important public services.” 

The first full year of tax cuts in Kansas resulted in greater revenue loss than the three years of the Great Recession combined, a revenue shortfall that is jeopardizing funding for education, roads and bridges, and other components essential to a strong economy. Efforts to close the Kansas budget gap also put added pressure on local governments and forced many areas to raise property taxes in order to maintain basic levels of service. In fact, 67 counties enacted property tax increases to offset the added cost of downshifted responsibilities. Property taxes increased by as much as 20 percent in some counties, and 17 of the 20 counties with the highest increases were rural. 

“As the Kansas experiment demonstrates, tax cuts that drain state resources have far reaching impacts for families, communities, and state economies. New Hampshire cannot afford to follow Kansas’ perilous path,” said NHFPI Executive Director Jeff McLynch.

“New Hampshire already lacks sufficient resources to meet its needs,” added McLynch. “Reducing revenue still further will only make it harder to maintain our roads, educate our children, and provide health, safety, and other public services essential to ensuring a strong economy and shared prosperity for all in the Granite State.”

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