Republicans in the Senate just passed legislation that will leave 13 million more people without health insurance, cut Medicaid and Medicare, and increase taxes for poor and middle-class families – all to pay for a massive tax break for the richest 1% and Wall Street corporations
To pay for a massive tax giveaway for millionaires, billionaires and large corporations, the Senate’s Tax Cuts and Jobs bill will raise taxes on 87 million poor and middle-class families and repeal the individual responsibility provision of the Affordable Care Act, causing 13 million people to lose their insurance and increasing premiums for millions more.
The massive tax giveaway to corporations like Apple, Google, Pfizer Drugs, and Wells Fargo Bank will force cuts of $1.5 million from Medicaid and Medicare. And it would trigger automatic cuts to important government services—including $25 billion in cuts to Medicare in 2018—resulting in additional burdens on working families.
The GOP tax plan forces poor and middle-class families to pay for massive tax giveaways to large corporations and the very wealthy.
- Most (62 percent) individual tax cuts will go to the richest 1 percent by 2027, while raising taxes on 87 million middle-class families.
- Nearly 75 percent of all the tax cuts go to large corporations by permanently slashing the corporate tax rate from 35 to 20 percent – costing the rest of us $1.3 trillion.
- Wealthy business owners and investors—including real estate developers like Donald Trump—get a $362 billion tax cut from the effective drop in the top tax rate for “pass-through” business income.
- Worse still, the Senate bill repeals the federal deduction for state and local taxes (SALT), which will hurt the middle class and add pressure on state and local budgets to cut education, health care, and infrastructure. One-third of taxpayers making $50-75,000 take this deduction for state and local income and property taxes, as do half of those making $75-100,000.
The GOP tax plan is a direct attack on our families’ health care—leaving 13 million more Americans uninsured, raising premiums for millions more, and forcing cuts Medicaid and Medicare.
- Senate Republicans used the tax plan as a backdoor way to repeal the individual responsibility provision of the Affordable Care Act, which will destabilize markets, strip 13 million Americans of health insurance, and raise premiums 10% for about 7 million more.
- Based on the budget blueprint passed earlier this year, the GOP plans to cuts Medicare by nearly $500 billion and Medicaid by $1 trillion to pay for these tax cuts, forcing working families, seniors, children and people with disabilities to foot the bill for tax cuts for the wealthy.
- And the GOP tax bill also will automatically trigger Medicare cuts of at least $25 billion next year and $400 billion over 10 years.
The Republican tax plan also discriminates against immigrant families by changing the Child Tax Credit (CTC) and refundable Additional Child Tax Credit (ACTC) provisions in the tax code that low-income and middle class families depend on to support their families.
- The Republicans’ CTC proposal would actually leave out 26 million children while giving huge new tax cuts to the very wealthy.
- Under the revised proposal, a single mother with two kids working full-time at the minimum wage would receive a paltry $75 increase in her credit. Meanwhile, a two-child family earning $500,000 would now qualify for a brand new $4,000 credit.
- Both the House and Senate tax bills deny low-income families, immigrant families and mixed-status households with average incomes of only $21,000 a year the Child Tax Credit (CTC) and the refundable Additional Child Tax Credit (ACTC) to pay for tax breaks for corporations in the bill by requiring a Social Security Number for each child to claim the tax credit, impacting up to up to 4 million children of taxpaying parents in immigrant families, the majority of whom are actually U.S. citizens. Up to 1 million children impacted by the loss of CTC and ACTC are young DREAMers.
- Worse still, the CTC increase would end entirely after 2025, even as corporate cuts are made permanent.
The GOP tax bill does tremendous harm to just about everyone in our country—poor families, seniors, children, and the middle class. Republicans have rammed their tax plan through with deliberate speed even though there is historically-low public support for the legislation. Once again, Republicans have betrayed the interests of their own constituents by choosing partisan political gain and their Wall Street donors over struggling work-class class families, seniors, children and veterans.
Now it’s up to Representatives in the House to do the right thing and reject the final version of this bill and the harm it does to health care, public services, the middle class, immigrants and the economy.