The House GOP have released a bad and unpopular plan to slash taxes for the rich by cutting services and tax breaks for working families. America’s labor movement will fight every attempt by Donald Trump to make working people pay for tax giveaways to millionaires and billionaires. Here are eight ways the Republican tax bill would hurt working people:
- The GOP tax bill is a job killer. It would give huge tax cuts to big corporations that outsource jobs. The U.S. tax rate on most offshore profits would be reduced to zero, giving corporations more incentive to move jobs offshore.
- The GOP tax bill favors corporations and millionaires over working people. Households making between $20,000 and $40,000 per year would ultimately pay more in taxes, while 45% of the tax benefits would go to those making more than $500,000.
- Republicans want to (partially) pay for tax cuts with drastic cuts to Medicaid, Medicare and education. The GOP budget includes $5 trillion in budget cuts, including $1.5 trillion from Medicaid and Medicare; increases the Medicare eligibility age from 65 to 67; and ends Medicare’s guarantee of health coverage.
- The GOP tax bill would increase the health care tax burden for low- and middle-income taxpayers, especially seniors and people with disabilities. Millions of Americans with high medical bills would no longer be able to deduct out-of-pocket medical expenses.
- The GOP bill is unfair to union members. Corporations can deduct payments to lawyers to fight unions, but union members can no longer deduct their union dues under this bill.
- The GOP tax bill would punish states that make the kind of investments that create good jobs. Repealing the deduction for state and local income taxes would make it harder for states to raise enough money to invest in high-quality education, infrastructure, and good jobs.
- The GOP tax bill is bad for students. Tax deductions for student loan interest, tuition expenses, and tuition assistance would be ended, as would tax credits for students to cover college expenses.
- The GOP tax bill will not be fully paid for, so we can expect Republicans to demand more budget cuts that hurt working people in the future. The Republican budget allows for $1.5 trillion in tax cuts that are not paid for in the first decade. First the Wall Street millionaires throw themselves a party, then they stick the rest of us with the tab.