Category Archives: Press Releases

RE: SENATE BUDGET RESOLUTION AND GOP TAX CUTS VOTE THIS WEEK

To: Editors and columnists
Date: October 17, 2017
From: Frank Clemente, executive director, Americans for Tax Fairness

As soon as this Thursday, the U.S. Senate is expected to vote on a budget resolution that would slash essential public services by $5.8 trillion while easing the way for consideration of the Trump-GOP tax cuts that will cost trillions of dollars and mostly benefit the wealthy and corporations. We urge you to write an editorial or column recommending that your home state senators vote “no” on the package.

The budget resolution will allow for a $1.5 trillion tax cut over 10 years that is not paid for by closing tax loopholes, meaning the costs will be added to the deficit. However, the non-partisan Tax Policy Center (TPC) estimates the costs of the tax cut at $2.4 trillion.

The ballooning of the deficit will jeopardize funding for Social Security, Medicare, Medicaid, education, and other services that America’s families rely on. Moreover, many middle-class families will get a tax increase under the plan.

This threat to the basic living standards of America’s families is not abstract. The Senate budget proposes $5.8 trillion in cuts to federal spending, including nearly $500 billion from Medicare and $1.3 trillion from Medicaid and other healthcare programs. Another $650 billion may be cut from income security programs, such as the Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families, according to the Center on Budget and Policy Priorities.

The Senate budget cuts and tax cuts are stark in their inequities:

  • A $1.3 trillion cut to Medicaid and other healthcare programs vs. a $2 trillion cut in corporate tax rates.
  • An $800 billion cut to housing, infrastructure, education, medical research, and other non-defense “discretionary” spending vs. a $770 billion tax cut for hedge fund managers, Wall Street lawyers, real estate developers (like President Trump) and other wealthy owners of “pass-through” businesses.
  • A $473 billion cut to Medicare a $440 billion tax cut for the wealthy (including Trump) from eliminating the Alternative Minimum Tax.
  • A $200 billion cut to education, job training, and social services vs. a repeal of the estate tax costing $240 billion, which only benefits estates worth at least $5.5 million.

Go here for sources and more comparisons.

It’s worth noting that the tax plan’s corporate and business tax cuts make up the entire $2.4 trillion revenue shortfall estimated by the Tax Policy Center. The individual tax cuts are mostly paid for, although who pays is shifted from the wealthy to the middle-class. But corporate and business taxes, which are paid mostly by the wealthy, are reduced by $2.6 trillion over 10 years.

Republican acceptance of this huge increase in federal debt completely contradicts their policies and rhetoric going back decades. While most GOP members of Congress have consistently voted for budgets that slashed spending for services supporting working Americans, in the past they opposed spending increases or tax cuts that weren’t paid for. Some swing votes on the budget—including Senators Collins, McCain, Murkowski and Portman—co-sponsored a Balanced Budget Act that would have slashed trillions from Social Security and Medicare in the interest of fiscal discipline.

EFFECT OF THE TAX CUTS ON THE WEALTHY AND THE MIDDLE-CLASS

Based on the Tax Policy Center analysis, the richest 1% will get:

  • 53% of the total tax cuts in 2018 and 80% in 10 years
  • A tax cut of $129,000 in 2018 and $207,000 in 10 years, on average

They benefit so much because of the deep corporate and business tax cuts. The corporate tax rate is cut from 35% to 20%. (American corporations already pay just a 14% U.S. tax rate, according to the non-partisan Government Accountability Office, a result of many generous tax loopholes.)

The top business tax rate on pass-throughs (partnerships, S Corporations, sole proprietorships) is cut from 39.6% to 25%.

Fully 70% of corporate tax cuts go to wealthier Americans. Just 14% of business owners would benefit from the new 25% top rate, and only 4% of all taxpayers—the wealthiest business owners—would get this tax cut, according to TPC. 

By comparison, more and more middle-class families will get a tax increase under the Trump-GOP plan. According to TPC:

  • 3 out of 10 middle-class families making between $50,000 and $150,000 a year will pay more taxes by the tenth year.
  • It will cost them nearly $2,000 more, on average, depending on their income (range is $1,300 to $2,500).

The tax increases are due, in part, to the elimination of two tax breaks important to the middle class: the personal exemption, which is $4,050 per family member, and repeal of the deductibility of state and local taxes (SALT). The SALT deduction is used by over a third of taxpayers making $50,000 to $75,000 and by over half of taxpayers making $75,000 to $100,000, according to the Government Finance Officers Association. If SALT is repealed, federal taxes would jump by $1,800 for an average family in this last income group.

Go here for data on how the Trump-GOP tax plan effects your state’s residents – summarizing tax cuts for the 1% and tax increases for the middle class, the number of estates taxed each year, and the importance of SALT to your state’s middle-class taxpayers.  

FALSE CLAIMS THAT THE TAX CUTS WILL PAY FOR THEMSELVES

Advocates of the Trump-GOP tax plan claim it will generate significant economic growth and create many jobs. Some even say the plan will “pay for itself.” The president claims the corporate tax cuts will give workers a $4,000 wage hike—per his Council of Economic Advisers. Each of these claims has been thoroughly debunked.

  • Economists have widely discredited the White House claim that workers will get a $4,000 raise from cutting the corporate tax rate. They’ve criticized the methodology of the study and pointed to the large body of economic research that says the wealthy get the lion’s share of corporate tax cuts.
  • Corporate profits are already near record highs; corporate taxes are at record lows. Many corporations pay little to nothing in taxes due to tax loopholes, while sitting atop mountains of cash. Profits are mostly used to pad the pockets of top executives and wealthy shareholders through dividends and stock buybacks. If corporations are not investing the profits they have now in their businesses and employees, there’s no reason to believe they will use money from tax cuts to expand operations, hire workers or raise wages.
  • Rather than spur growth, these tax cuts for the rich and corporations could hurt the economy and cost jobs by causing big cuts to education, healthcare, infrastructure construction and other critical investments. Tax cuts for the rich and corporations create few jobs compared with investing in education, healthcare and infrastructure.
  • Huge tax cuts for the rich and corporations do not pay for themselves through miraculous economic growth. History shows that they just increase the deficit and force cuts to services while the rich get richer.

Even conservative economists reject the economic benefit claims being made by the White House:

  • Bruce Bartlett, a top adviser to President Ronald Reagan who helped craft Reagan’s 1981 tax cuts, has concluded, “There’s no evidence that a tax cut now would spur growth.”
  • Douglas Holtz-Eakin, former head of the Congressional Budget office, who as president of the American Action Forum is actively promoting the GOP tax plan, has conceded, “These tax cuts are not going to pay for themselves.”
  • Joel Slemrod, a University of Michigan economist who was another top economic adviser to President Reagan, has said: “Can tax cuts pay for themselves? The evidence overwhelmingly suggests that this is not true.”

The Trump-GOP tax plan, and the budget that will facilitate its passage and being voted on in the Senate this week, are bad for working families and bad for Main Street. The wealthy and corporations should not get one penny in tax cuts. Instead, they need to start paying their fair share so we can protect Social Security, healthcare, and public education from future cuts, as well as finance the investments needed to rebuild our infrastructure, improve education, expand health care, and research new medical cures. Such investments will create many more jobs than giving tax breaks to the well-off, and they will make working families much more productive and secure.

USEFUL OPINION PIECES AND ARTICLES

219 REPUBLICAN HOUSE MEMBERS JUST VOTED TO CUT MEDICAID, MEDICARE, AND PUBLIC EDUCATION TO GIVE TAX BREAKS TO MILLIONAIRES AND CORPORATIONS

Vote Was on the House Budget Resolution in Congress that set the stage for Trump-Ryan Tax Plan

WASHINGTON — Earlier today, the House of Representatives voted 219 to 206 in favor of the Republican House budget resolution that proposed $5.8 trillion in cuts over the next decade to Medicare, Medicaid, education, infrastructure and other critical services while paving the way for trillions of dollars in tax cuts that would mostly benefit the wealthy and corporations. The vote was almost entirely along party lines, with 18 Republicans joining all Democrats against the resolution.

The budget resolution also set up a procedure for fast-track consideration of tax legislation, enabling Senate Republicans to bypass bipartisanship to pass a tax plan with just 51 votes, rather than 60 votes typically required for such contentious legislation.

Congressional Republican leaders and President Trump released a framework for massive tax cuts last week that will cost at least $2.4 trillion, according to the non-partisan Tax Policy Center. The wealthy and corporations, which are primarily owned by rich shareholders, are the big winners. About 80% of the tax cuts will flow to the top 1% by 2027, when they would get a tax cut of $207,000, on average. That year under the plan, 3 out of 10 middle-class families making between $50,000 and $150,000 a year will pay $2,000 more in taxes, on average, depending on their income (the range is $1,300 to $2,500).

These large tax cuts will balloon the deficit and further jeopardize funding for Social Security, Medicare, Medicaid, and education. Included in the $5.8 trillion in cuts to services under the House-passed budget are Medicaid and other healthcare programs ($1.5 trillion), Medicare ($487 billion), and nutrition assistance ($150 billion).

“This budget resolution is the first step toward an immoral tax scheme that will hand trillions of dollars to millionaires and corporations at the expense of millions of America’s working families, many of whom will actually see a tax increase” said Frank Clemente, executive director of Americans for Tax Fairness. “These tax cuts for the wealthy and corporations will ultimately be paid for by cuts to Medicaid, Medicare, education, disability services, and other national priorities, while the expansion of the deficit will further threaten Social Security. The Republicans who voted to advance this plan owe their constituents an explanation.”  

Below is an explanation of the tax cuts proposed under the Trump-GOP tax framework compared with the spending cuts proposed in the House budget resolution.

A more detailed version of this chart with sources is available here: https://americansfortaxfairness.org/wp-content/uploads/ATF-Comparison-of-Trump-Ryan-Tax-Plan-House-Budget-FINAL.pdf

MORE EFFECTS OF THE TRUMP-GOP TAX PLAN:

Tax Breaks for the Richest 1%:

In the U.S., the richest 1% of Americans will get 53% of the total tax cuts in 2018 and 80% after 10 years. They will get a tax cut of $129,000 in 2018, on average, and $207,000 in the 10th year. [Source: Tax Policy Center]

Estate Tax Repeal:

The Trump-Ryan tax plan eliminates estate and gift taxes, losing $240 billion over 10 years and boosting the inheritances of the very wealthy. The federal estate tax is paid only by estates worth at least $5.5 million, just 2 out of 1,000 estates, or only 5,500 estates in all of 2017. [Sources: Center on Budget and Policy Priorities (CBPP) and Tax Policy Center]

Repeal of the State and Local Tax Deduction:

The Trump-Ryan tax plan repeals the deduction for state and local taxes (SALT), raising taxes on the middle class and undermining local public services. Repealing SALT would raise $1.3 trillion over 10 years. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. Over a third of taxpayers making $50-75,000 use the SALT deduction, and over half of those making $75-100,000. An average family in this last group would see their federal taxes jump by $1,800 if SALT is repealed. In addition to boosting middle-class taxes, repeal of the SALT deduction will make local taxation more expensive, putting pressure on localities to cut budgets for services like roads and schools. [Sources: Tax Policy CenterGovernment Finance Officers Assoc.]

WORST FEATURES OF THE TRUMP—RYAN TAX PLAN

This analysis is based on the tax plan framework released by Republican leaders Sept. 27, 2017. The plan is very similar to earlier ones by President Trump and House Speaker Ryan, which were analyzed by the non-partisan Tax Policy Center and form the basis of this analysis.[1]

    1. The Trump-Ryan tax plan is not tax “reform,” but massive tax cuts for the wealthy and corporations that will jeopardize Social Security, Medicare, Medicaid and public education. Based on earlier Trump and Ryan plans cost estimates, the plan could cut taxes by a total of $6.7 to $8.3 trillion, of which $3 to $5 trillion may not be paid for by closing tax loopholes and limiting deductions.[2] The resulting jump in the deficit would increase the likelihood of deep cuts to Social Security, healthcare, education and other services. Such cuts are in Trump’s 2018 budget, which slashes $4.3 trillion from Social Security, Medicaid, education and other services. Ryan’s House budget slashes $5.8 trillion from Medicare, Medicaid education, and other services.[3]

 

    1. The wealthy and corporations will get most of the tax cuts at the expense of working families who rely on Social Security, Medicare, Medicaid, and public education. Under Trump’s previous tax plan, the richest 1% would get half of the tax cuts, or $175,000 each year, on average.[4] His plan required one-quarter of middle-class families to pay more in taxes.[5] Under Ryan’s earlier plan, the richest 1% would get more than 99% of the tax cuts once fully enacted, with a $240,000 tax cut each year, on average.[6]

 

CORPORATE TAX CUTS

    1. Corporate tax rates are slashed by more than 40%—from 35% to 20%—losing $1.8 trillion over 10 years.[7] Corporations need to pay their fair share not get a tax cut. Corporate profits are at near record highs, while corporate tax revenues are at record lows.[8] Profitable corporations are paying a U.S. tax rate of just 14%, according to the non-partisan Government Accountability Office.[9] Many pay nothing for years.[10] Only $1 out of $9 of federal revenue now comes from corporate taxes; in the mid-20th century it was $1 out of $3.[11] Moreover, 80% of corporate tax cuts benefit wealthier Americans.[12]

 

    1. Trump-Ryan slashes the top tax rate on business income from hedge funds, law firms, real estate firms like Trump’s, and other “pass-through” businesses from 39.6% to 25%, losing $390 to $660 billion.[13] Many of these big-money outfits organize as partnerships or other business entities that allow them to pay business taxes at individual rates. Claims that this is a small business tax cut is a hoax: Just 4% of pass-through business owners will get a tax cut from the new top 25% rate, as everyone else already pays that rate or less. The top one-tenth of 1% will get a tax cut of $270,000, on average.[14] As the sole or principal owner of 500 pass-through entities,[15] Trump will benefit handsomely,[16] from what’s been aptly dubbed theTrump Loophole.[17]

 

    1. Trump-Ryan temporarily (for at least five years) allows corporations to immediately write off big purchases, which could lose $900 billion to $2.2 trillion.[18] Businesses would be allowed to immediately write off—or fully “expense”—the total cost of big-ticket purchases such as vehicles, equipment, and buildings. Currently, they may deduct (or depreciate) only a portion of the expense each year over a multi-year period to reflect the progressive decline in the property’s value. The wide cost range comes from uncertainty as to the tax cut’s economic effect. Though this is a 10-year estimate, the bulk of the revenue loss occurs in the first five years.[19] The Tax Policy Center has questioned claims about the supposed economic boost from full expensing, suggesting expensing could retard growth.[20]

 

    1. Trump-Ryan potentially allows American corporations to dodge all U.S. taxes on foreign profits through a territorial tax system. Under such a system, U.S. corporations would no longer pay taxes on profits booked offshore (although Trump’s plan suggests there may be a minimum tax on profits in tax havens). A territorial system will encourage multinationals to shift even more profits and jobs offshore than they do now.[21] Analysis of a similar plan found a territorial tax system would lose $205 billion over 10 years.[22]

 

    1. Multinational corporations with profits stashed offshore could get a $600 billion tax cut. Big American corporations hold $2.6 trillion in profits offshore on which they owe about $750 billion in U.S. taxes.[23] The new plan promises a big tax break on these profits, but it does not indicate the tax rate. Trump previously proposed cutting the rate from 35% to just 10% on cash and only 4% on non-cash assets, raising about $150 billion.[24] So, tax-dodging multinationals could get an undeserved tax break of about $600 billion. They should instead pay what they owe, just like working families and small businesses do.

 

INDIVIDUAL TAX CHANGES

    1. The top tax rate on individuals would be lowered from 39.6% to 35%, and six other tax brackets would shrink to just two, losing $2 trillion.[25] The new brackets are 12%—an increase on lower income Americans from the current 10% rate—25%, and 35%. The reduction in the top rate will help give a $270,000 average tax cut to the Top 1%, which was estimated under Trump’s earlier tax plan.[26] The top 0.1% would get a $1.4 million tax cut, on average.

 

    1. The alternative minimum tax (AMT) would be repealed allowing wealthy taxpayers like Trump to use excessive deductions and other loopholes to sharply reduce or eliminate their tax bill, losing $445 billion.[27] Trump could benefit massively: In 2005, the one year for which his tax returns have been made public, he made $153 million and paid $38 million in federal income taxes for a tax rate of 25%.[28] Without the AMT, he would have paid just $5 million in federal income taxes, a tax rate of less than 4%.[29] That rate is less than the lowest-income Americans often pay.[30]

 

    1. Trump-Ryan eliminates estate and gift taxes, losing $239 billion and boosting the inheritances of millionaires and billionaires.[31] The federal estate tax is paid only by estates worth at least $5.5 million, just 1 in 500 estates,[32] or only 5,500 estates in all of 2017.[33] Assuming Trump is worth the $10 billion he claims, his heirs could gain billions if his plan is adopted.[34]

 

    1. Trump-Ryan repeals the deduction for state and local taxes (SALT), raising taxes on the middle class and undermining local public services. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. Over a third of taxpayers making $50-75,000 use the SALT deduction, and over half of those making $75-100,000.[35] An average family in this last group would see their federal taxes jump by $1,800 if SALT is repealed.[36] Repealing SALT would increase federal revenue by $1.3 trillion over 10 years.[37] In addition to boosting taxes on the middle class, repeal of the SALT deduction will make local taxation more expensive, putting pressure on localities to cut budgets for services like roads and schools.

 

  1. Trump-Ryan pulls a bait-and-switch with tax provisions working families rely on, increasing the standard deduction while eliminating the personal exemption, ultimately leaving many families worse off. Taxpayers who don’t itemize their deductions (which under this plan may be limited to charitable contributions and mortgage interest) this year can deduct from their reportable income $6,350 for an individual and $12,700 for a married couple.[38] The plan would roughly double those amounts to $12,000 and $24,000, losing $708 billion.[39] At the same time, the plan repeals the personal exemption, which reduces reportable income by $4,050 this year for each member of a household. Even with the increased standard deduction, without the personal exemption many large families, and especially those headed by a single parent, would pay more.[40] A Tax Policy Center analysis found that Trump’s earlier tax plan would increase taxes for about 8.7 million families—20% of households and more than half of all single-parents.[41] That analysis assumed a much higher standard deduction, which means even more families will experience a tax increase under the Trump-Ryan plan.

 

ENDNOTES
[1] Tax Policy Center (TPC), “The Implications of What We Know and Don’t Know About President Trump’s Tax Plan” (July 12, 2017).  http://www.taxpolicycenter.org/sites/default/files/publication/142616/implications_of_what_we_know_and_dont_know_about_president_trumps_plan_1.pdf. TPC, “Dynamic Analysis of the House GOP Tax Plan: An Update” (June 30, 2017).  http://www.taxpolicycenter.org/sites/default/files/publication/142556/2001397-dynamic-scoring-of-tax-plans-and-analysis-of-the-house-gop-plan.pdf

[2] Americans for Tax Fairness, “Updated Analysis: Trump’s Unpaid-For Tax Cuts May Total $5 Trillion in New Tax Plan” (Sept. 27, 2017).  https://americansfortaxfairness.org/new-analysis-trumps-unpaid-tax-cuts-may-total-5-trillion-new-tax-plan/

[3] Center on Budget & Policy Priorities (CBPP), “Trump Budget Gets Three-Fifths of Its Cuts from Programs for Low- and Moderate-Income People” (May 30, 2017). https://www.cbpp.org/research/federal-budget/trump-budget-gets-three-fifths-of-its-cuts-from-programs-for-low-and#_ftn1. CBPP, “House GOP Budget Cuts Programs Aiding Low- and Moderate-Income People by $2.9 Trillion Over Decade” (Sept. 5, 2017). https://www.cbpp.org/research/federal-budget/house-gop-budget-cuts-programs-aiding-low-and-moderate-income-people-by-29

[4] TPC, “The Implications of…Trump’s Tax Plan,” Table 4 and p. 9.

[5] Ibid. Table 4 showing that 23.8% of tax units in the middle quintile would experience increased taxes.

[6] TPC “An Analysis of the House GOP Tax Plan” (Sept. 16, 2016), Table 5. http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000923-An-Analysis-of-the-House-GOP-Tax-Plan.pdf

[7] TPC, “Dynamic Analysis of the House GOP Tax Plan,” Table 5. Amount includes repealing the corporate Alternative Minimum Tax (AMT).

[8] Estimates are measured as a share of the economy/GDP. Americans for Tax Fairness and Economic Policy Institute, “Corporate Tax Chartbook: How Corporations Rig the Rules to Dodge the Taxes They Owe” (Sept. 2016), Figure 2. http://www.epi.org/publication/corporate-tax-chartbook-how-corporations-rig-the-rules-to-dodge-the-taxes-they-owe/

[9] Government Accountability Office, “Corporate Income Tax” (March 2016). Https://Www.Gao.Gov/Products/Gao-16-363

[10] Institute on Taxation and Economic Policy (ITEP), “The 35 Percent Corporate Tax Myth” (March 2017), p. 4. https://itep.org/wp-content/uploads/35percentfullreport.pdf

[11] Office of Management and Budget (OMB), Historical Tables, “Table 2.2: Percentage Composition of Receipts by Source.” https://www.whitehouse.gov/omb/budget/Historicals

[12] TPC, “Would Workers Benefit from A Corporate Tax Cut? Not Much” (Sept. 8, 2017). http://www.taxpolicycenter.org/taxvox/would-workers-benefit-corporate-tax-cut-not-much

[13] TPC, “Options to Reduce the Taxation of Pass-through Income” (May 15, 2017), p. 6. http://www.taxpolicycenter.org/sites/default/files/publication/141541/options-to-reduce-the-taxation-of-pass-through-income.pdf

[14] TPC, “Options to Reduce the Taxation of Pass-through Income,” p. 8.

[15] Letter to Donald Trump from tax attorneys Morgan, Lewis & Bockius (Mar. 7, 2016). http://assets.donaldjtrump.com/Tax_Doc.pdf

[16] The Washington Post, “Donald Trump’s New Tax Plan Could Have a Big Winner: Donald Trump’s Companies” (Aug. 10, 2016). https://www.washingtonpost.com/news/wonk/wp/2016/08/10/donald-trumps-new-tax-plan-could-have-a-big-winner-donald-trumps-companies/

[17] CNN, “Hillary Clinton Slams ‘Trump Loophole’” (Aug. 11, 2016). http://money.cnn.com/2016/08/11/pf/taxes/hillary-clinton-donald-trump-loophole/

[18] The Tax Foundation, “Full Expensing Costs Less than You’d Think” (June 13, 2017). https://taxfoundation.org/full-expensing-costs-less-than-youd-think/ These cost estimates are based on current tax rates. If corporate tax rates are reduced, the cost of this tax break would decline.

[19] Ibid.

[20] TPC, “A Business Cash Flow Tax Could Reduce Investment, Contrary to What Some Economists Think” (Jan. 24, 2017). http://www.taxpolicycenter.org/taxvox/business-cash-flow-tax-could-reduce-investment-contrary-what-some-economists-think

[21] ITEP, “Turning Loopholes into Black Holes: Trump’s Territorial Tax Proposal Would Increase Corporate Tax Avoidance” (Sept. 6, 2016). https://itep.org/turning-loopholes-into-black-holes-trumps-territorial-tax-proposal-would-increase-corporate-tax-avoidance/

[22] TPC, “An Analysis of Marco Rubio’s Tax Plan” (Feb. 11, 2016), p. 10. http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000606-an-analysis-of-marco-rubios-tax-plan.pdf

[23] ITEP, “Fortune 500 Companies Hold a Record $2.6 Trillion Offshore” (March 2017), p. 1. http://www.itep.org/pdf/pre0327.pdf

[24] TPC, ““The Implications of…Trump’s Tax Plan,” Table 2. See “Deemed repatriation rate on accumulated offshore earnings.”

[25] Ibid. See “Individual income tax rates of 10, 25, and 35%.”

[26] Ibid., Table 3.

[27] TPC, “The Implications of…Trump’s Tax Plan,” Table 2.

[28] The New York Times (NYT), “Trump Wrote Off $100 Million in Losses in 2005, Leaked Form Shows” (March 14, 2017). http://nyti.ms/2pmUkEH

[29] NYT, “A.M.T., Which Hit Trump in 2005, Is No One’s Favorite” (March 15, 2017). https://www.nytimes.com/2017/03/15/business/economy/trump-alternative-minimum-tax.html

[30] TPC, “Historical Average Federal Tax Rates for All Households.” http://www.taxpolicycenter.org/statistics/historical-average-federal-tax-rates-all-households

[31] TPC, “The Implications of…Trump’s Tax Plan,” Table 2. See “Repeal the estate, gift and GST taxes.”

[32] CBPP, “Ten Facts You Should Know About the Federal Estate Tax” (Sept. 8, 2016). http://www.cbpp.org/research/ten-facts-you-should-know-about-the-federal-estate-tax

[33] TPC, “Briefing Book: Who pays the estate tax?” http://www.taxpolicycenter.org/briefing-book/who-pays-estate-tax

[34] The Detroit News, “Clinton: Trump Plan to Ax Estate Tax Saves His Family $4B” (Aug. 11, 2016). http://www.detroitnews.com/story/news/politics/2016/08/10/clinton-warren-economy/88546136/

[35] Government Finance Officers Association, “The Impact of Eliminating the State and Local Tax Deduction” (Using 2015 IRS data), p. 6. https://www.gfoa.org/sites/default/files/GFOA_SALT_09202017.pdf

[36] Ibid., p. 8.

[37] TPC, “Revisiting The State and Local Tax Deduction” (Mar. 31, 2016), p. 2. http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000693-Revisiting-the-State-and-Local-Tax-Deduction.pdf

[38] IRS.gov,In 2017, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged.” https://www.irs.gov/newsroom/in-2017-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-are-unchanged

[39] TPC, “The Implications of…Trump’s Tax Plan,” Table 2. See “Double standard deduction.”

[40] Center for American Progress, “How Middle-Class and Working Families Could Lose Under the Trump Tax Plan” (June 13, 2017). https://www.americanprogress.org/issues/economy/reports/2017/06/13/434054/middle-class-working-families-lose-trump-tax-plan/

[41] TPC, “Families Facing Tax Increases Under Trump’s Tax Plan” (Oct. 28, 2016). http://www.taxpolicycenter.org/sites/default/files/publication/135696/2000983-Families-Facing-Tax-Increases-Under-Trumps-Plan.pdf

Updated Analysis: Trump’s Unpaid-For Tax Cuts May Total $5 Trillion In New Tax Plan

Failure to pay for tax cuts by closing tax loopholes may put Social Security, Medicare, Medicaid and Education on the Chopping Block

WASHINGTON, D.C.—An analysis by Americans for Tax Fairness of the tax framework released today by President Trump and Republican leaders in Congress shows that Trump’s tax cuts could total a massive $6.7 to $8.3 trillion, $3 to $5 trillion of which may not be paid for by closing other tax loopholes and/or by limiting tax deductions. The resulting jump in the deficit threatens funding of Social Security, Medicare, Medicaid, public education and other vital services. The framework is very similar to key features of the tax plans previously released by President Trump and House Speaker Ryan, which is the basis for ATF’s analysis.

The table below summarizes the proposed tax cuts in the Trump-Republican leaders’ tax plan, along with estimates of their considerable costs. The new tax plan is likely to:

  • Provide massive tax cuts that largely benefit the richest Americans and biggest corporations—through direct tax cuts and indirectly through big cuts in corporate taxes, 80% of which benefit wealthier Americans, according to the non-partisan Tax Policy Center.
  • Provide a modest middle-class tax cut, largely by doubling the standard deduction, although much of that could be taken away if the tax plan repeals the personal exemption and the head of household filing status.
  • Not come close to being paid for by closing tax loopholes, which will likely result in deep cuts now or next year to Social Security, Medicare, Medicaid, public education and many other priorities working families depend on. These cuts were outlined in President Trump’s FY2018 budget, which proposed $4.3 trillion in cuts to Social Security, Medicaid, public education and other non-defense programs; and in the House budget, which proposed $5.8 trillion in cuts to Medicare, Medicaid public education and other non-defense programs and that is awaiting floor action.

“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.”

ESTIMATES OF COSTS OF THE TRUMP & CONGRESSIONAL LEADERS’ TAX PLAN

Cost estimates are mostly from the non-partisan Tax Policy Center, and are ten-year estimates except where noted.

COST OF CORPORATE TAX CUTS
$1.8 Trillion[1] Cut the corporate tax rate from 35% down to 20%, or by more than 40%, and repeal the alternative minimum tax (AMT).
$390 – $660 Billion[2] Cut the top tax rate on business income from nearly 40% down to 25%, or by more than a third, on hedge funds, corporate law practices, real estate investment firms like President Trump’s and other wealthy “pass-through” businesses.
$900 Billion – $2.2 Trillion[3] Allow businesses to immediately deduct, or “expense,” the full cost of capital investments in vehicles,equipment, structures, etc. (Media reports indicate this tax break might be scheduled to expire after five years. But most of the revenue loss occurs in the early years, and once the break exists it may be hard to eliminate.)
$205 Billion[4] Establish a territorial tax system that would exempt American corporations from paying any U.S. income taxes on foreign profits.
$3.3 to $4.9 TRILLION TOTAL CORPORATE TAX CUTS
COST OF INDIVIDUAL TAX CUTS
$2 Trillion[5] Lower the top tax rate on individuals from 39.6% to 35% and reduce six other tax brackets to just two—12% and 25%.[6]
$445 Billion[7] Repeal the AMT which prevents wealthy taxpayers like Trump from using excessive deductions and other loopholes to sharply reduce or eliminate their taxes.
$708 Billion[8] Double the standard deduction to $12,000 for an individual and $24,000 for a married couple.
$239 Billion[9] Repeal estate and gift taxes, which would boost dramatically the inheritances of millionaires and billionaires, since the tax only applies to estates worth at least $5.5 million.[10] Trump’s heirs could gain billions of dollars.
$3.4 TRILLION TOTAL INDIVIDUAL TAX CUTS
$6.7 to $8.3 TRILLION GRAND TOTAL
TAX INCREASES TO PAY FOR TAX CUTS
$1.5 Trillion[11] Repeal itemized deductions other than charitable giving and mortgage interest.
$1.3 – $1.9 Trillion[12] Repeal the personal exemption and the head of household filing status; possibly expand nonrefundable credit by $500 per dependent. This could take away much of the benefit to middle-income people of doubling the standard deduction.[13]
$271 Billion[14] Repeal certain business tax expenditures.
$150 Billion[15] Deemed repatriation tax of up to 10% on accumulated foreign profits.
TBD Repeal/modify the state and local tax deduction.
$3.2 – $3.8 TRILLION TOTAL
$2.9 – $5.1 TRILLION NET 10-YEAR COSTS NOT PAID FOR

Endnotes

[1] Tax Policy Center (TPC), “Dynamic Analysis of the House GOP Tax Plan: An Update” (June 30, 2017), Table 5, p. 12.  http://www.taxpolicycenter.org/sites/default/files/publication/142556/2001397-dynamic-scoring-of-tax-plans-and-analysis-of-the-house-gop-plan.pdf

[2] TPC, “Options to Reduce the Taxation of Pass-through Income” (May 15, 2017), p. 6. http://www.taxpolicycenter.org/sites/default/files/publication/141541/options-to-reduce-the-taxation-of-pass-through-income.pdf

[3] The Tax Foundation, “Full Expensing Costs Less than You’d Think” (June 13, 2017). https://taxfoundation.org/full-expensing-costs-less-than-youd-think/ These cost estimates are based on current tax rates. If corporate tax rates are reduced, the cost of this tax break would decline.

[4] TPC, “An Analysis of Marco Rubio’s Tax Plan” (Feb. 11, 2016), p. 10. http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000606-an-analysis-of-marco-rubios-tax-plan.pdf

[5] TPC, “The Implications of What We Know and Don’t Know About President Trump’s Tax Plan” (July 12, 2017), Table 2. http://www.taxpolicycenter.org/sites/default/files/publication/142616/implications_of_what_we_know_and_dont_know_about_president_trumps_plan_1.pdf.

[6] A Tax Policy Center analysis of an earlier version of Trump’s tax plan with rates of 12%, 25% and 33% showed a revenue loss of $1.5 trillion (Table 2), so the cost of these rate cuts may fall between $1.5 and $2 trillion.  http://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/2000924-an-analysis-of-donald-trumps-revised-tax-plan.pdf

[7] Ibid.

[8] Ibid.

[9] Ibid.

[10] Center on Budget and Policy Priorities, “Ten Facts You Should Know About the Federal Estate Tax” (May 5, 2017). https://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

[11] TPC, “The Implications of … Trump’s Tax Plan,” Table 2.

[12] $1.3 trillion figure is from TPC, “Dynamic Analysis of the House GOP Tax Plan,” Table 5; $1.9 trillion figure is from TPC, “The Implications of…Trump’s Tax Plan,” Table 2.

[13] Center for American Progress, “How Middle-Class and Working Families Could Lose Under the Trump Tax Plan” (June 13, 2017). https://www.americanprogress.org/issues/economy/reports/2017/06/13/434054/middle-class-working-families-lose-trump-tax-plan/

[14] TPC, “The Implications of … Trump’s Tax Plan,” Table 2.

[15] Ibid.

News: Trump Lied Again About His Tax Cuts

Just a few hours ago, President Trump sat down with congressional leaders from the bipartisan Problem Solvers Caucus to discuss his tax cut plan. During the Q&A, Trump claimed that wealthy individuals will not benefit from his plan.

Our response: “That’s a lie. Trump’s current tax plan will overwhelmingly benefit millionaires, billionaires, and large corporations, at the expense of everyone else. The top 1% will get half of his proposed tax cuts — $175,000 each on average. Trump plans to pay for his massive tax giveaway with budget cuts to Social Security, Medicaid, public education and other priorities for the middle class. He even plans to cut $667 million from FEMA next year. Unbelievable.” — Frank Clemente, Executive Director, Americans for Tax Fairness.

Here is what Trump said:  

“The rich will not be gaining at all with this plan. We’re not — we’re looking for the middle class, and we’re looking for jobs — jobs, meaning companies. So we’re looking at for the middle class and we’re looking at jobs. […] I think the wealthy will be pretty much where they are, pretty much where they are. We can do that, we’d like it. If they have to go higher, they’ll go higher, frankly. We’re looking at the middle class and we’re looking at jobs. OK?”

Here are the facts about Trump’s tax plan as outlined in April 2017:

  • Half of the tax cuts in Trump’s plan will go to the top 1% (those making more than $732,900).
  • The average tax cut for the top 1% will be $175,000.
  • The average tax cut for a family making between $25,000 and $48,600 will be $210.
  • A quarter of all families making between $48,600 to $86,100 will actually see their taxes INCREASE.
  • Source: Tax Policy Center

On top of that, these tax cuts for millionaires will be paid for by Trump’s budget cuts to Social Security, Medicaid, public education, and many other priorities for working families and the middle class — including FEMA and other disaster recovery agencies.

A few other things to note:

See additional myths debunked here:  https://americansfortaxfairness.org/trumps-false-claims-taxes-rhetoric-contradicts-actual-proposals-reality/

MEDIA CONTACT: TJ Helmstetter, thelmstetter@americansfortaxfairness202.506.3264

 

Trump’s False Claims about Taxes: His Rhetoric Contradicts His Actual Proposals – and Reality

Today, August 30, 2017, President Trump will promote his plans to change the nation’s tax code at a closed-to-the-public event in Springfield, Missouri. The speech will take place at a business owned by one of his campaign donors. While we don’t know quite what the president will say, we can predict a few claims based on his past statements. And we’re expecting some whoppers.

REACTION FROM ATF: “Make no mistake, what Trump and Republican leaders in Congress are proposing is not tax reform. They simply want massive tax cuts for millionaires, billionaires, and big corporations, at the expense of everyone else. And those tax giveaways will be paid for by cuts to Social Security, healthcare, education and other programs that maintain living standards for working families. It’s Trumpcare all over again, and it must be blocked.” – Frank Clemente, executive director, Americans for Tax Fairness

See below for some of the claims we expect Trump to make, and for the reality based on the Trump tax plan released in April 2017.

CLAIM: Trump says he will enact “historic tax reform.”

REALITY: TRUMP’S “TAX REFORM” IS NOT REFORM, IT’S SIMPLY A MASSIVE TAX GIVEAWAY TO THE RICH AND CORPORATIONS.
True tax reform would close loopholes and make the system fairer for everyone. Trump’s plan is a $5 trillion tax giveaway that mostly benefits the wealthy and big corporations. As proposed in Trump’s budget, these tax cuts would essentially be paid for by $4.3 trillion in cuts to Social Security, Medicare, Medicaid, education, and other services that help working families get by and get ahead.

CLAIM: Trump claims his tax cuts will mainly help the middle class. “The truth is the people I care most about are the middle-income people in this country who have gotten screwed… And if there’s upward revision [in taxes], it’s going to be on high-income people.”

REALITY: THE TOP 1% WILL BE THE BIG WINNERS UNDER TRUMP’S TAX PLAN. It  gives half of the tax cuts to the richest 1%, who would each get an annual tax cut of $175,000 on average.

CLAIM: Trump has claimed that his tax plan will give the “biggest benefit” to the “working and middle class taxpayer”that “it won’t even be close.”

REALITY: WORKING FAMILIES WILL BE THE BIG LOSERS UNDER TRUMP’S TAX PLAN. In fact, a quarter of middle-class families would actually pay higher taxes under his plan. Even worse, Trump would pay for his tax cuts for the wealthy and corporations by cutting public services working families rely on, such as Social Security, Medicaid, education, infrastructure, nutrition programs and other vital services.

CLAIM: Trump claims “small businesses will benefit the most” from his plan to cut the top tax on so-called pass-through businesses to 15%.

REALITY: TRUMP’S “SMALL BUSINESS” TAX CUTS ARE REALLY A HOAX, AND A BOON FOR THE RICH. Most small businesses already pay taxes at a 15% rate or lower, so less than 7% of business owners would get any tax cut. More than three-quarters of the tax cuts would go to the richest 1% of business owners, who would get an average tax cut of $75,000 each year. These are not Main Street shopkeepers, but hedge fund managers, Wall Street lawyers and real estate developers like Trump, who would lower his own tax rate from roughly 40% to 15%.

CLAIM: Trump claims corporate and individual tax rates need to be reduced because “we have the highest taxes in the world.”

REALITY: AMERICANS ARE NOT OVERTAXED COMPARED TO OTHER COUNTRIES. As a percentage of the overall economy, Americans pay less in taxes than 30 of 35 other similarly developed countries. And although the official corporate tax rate is 35%, most corporations pay much less because of loopholes. In fact, the Government Accountability Office found that profitable U.S. corporations paid an effective tax rate of only 14% from 2008 to 2012.

CLAIM: Trump claims his plan to deeply cut the tax rate on accumulated offshore corporate profits will “bring that cash home” to be “reinvested” in the American economy.

REALITY: CUTTING TAXES ON OFFSHORE CORPORATE PROFITS WON’T SPUR THE U.S. ECONOMY. Trump’s proposal to tax those offshore earnings at just 10%, instead of the 35% they currently owe, amounts to a $600 billion tax cut for tax-dodging corporations–a huge loss of revenue that could be used for economy-boosting public investments. When Congress provided a similar tax giveaway in 2004, corporations that brought home their profits cut tens of thousands of jobs and gave 90 cents of every dollar in earnings brought home to rich shareholders through stock buybacks and dividends.

CLAIM: Trump claims that big corporations need to pay just a 10% tax rate on their offshore profits because those earnings will otherwise remain “trapped” offshore, frozen out of the American economy.

REALITY: CORPORATE OFFSHORE PROFITS AREN’T REALLY “TRAPPED” OFFSHORE. In fact, many corporations bring their profits home now and simply pay the tax due. What’s more, a U.S. Senate study found that much of the money is not actually offshore anyway: it’s already invested in the American economy, and corporations can use it for a variety of purposes.

CLAIM: Trump’s Treasury Secretary’s claims that the Administration’s multi-trillion-dollar tax giveaway will somehow “pay for itself.”

REALITY: TAX CUTS DON’T PAY FOR THEMSELVES. No serious economist believes that’s possible. Instead, the best estimates are that Trump’s proposed tax cuts would reduce federal revenue by between $3.5-4.8 trillion over the next 10 years, requiring either deep cuts to public services or a big increase in public debt.

CLAIM: Trump claims that his proposed deep tax cuts for wealthy professionals and corporations will result in an “explosion of new business and new jobs.”

REALITY: TAX CUTS FOR THE WEALTHY & CORPORATIONS WON’T CREATE MANY JOBS. But recent experience and academic research both show that tax cuts for the wealthy and corporations are a poor way to stimulate the economy and create jobs. And Trump’s proposed deep budget cuts to infrastructure, healthcare, medical research and education won’t help create jobs, either.

CLAIM: Trump has claimed that he wants to abolish the estate tax because “American workers…should not be taxed…at death,” implying that the estate tax affects average workers.

REALITY: ABOLISHING THE ESTATE TAX ONLY HELPS THE WEALTHY LIKE TRUMP. Only the richest one of every 500 estates currently pays the estate tax—the estate must be worth $5.5 million or more to be affected. The only effect abolishing the estate tax will have on American workers is to deprive them of over $20 billion in annual revenue, which pays for public services used by those who haven’t inherited a fortune.

CLAIM: Trump recently tweeted “Corporations have NEVER made as much money as they are making now.”

REALITY: WELL, ON THIS ONE HE’S RIGHT! CORPORATIONS ARE ALREADY EXTREMELY PROFITABLE. But what Trump failed to add is that even as corporate profits are near record highs, corporate tax payments flirt with historic lows. Sixty-five years ago, both corporate profits and corporate taxes equaled about 6% of the economy. Now, corporate profits represent 8.5% of the economy, corporate taxes only 1.9%. Big corporations don’t need a tax cut—what they need is to start paying their fair share of taxes again.

 

ATF Launches New Campaign Showing the True Costs of Trump’s Tax Cuts for the Wealthy and Corporations

StopTrumpTaxCuts.org Will Show Visitors How Trump’s Proposed Cuts to Healthcare, Education and  Other Working Family Priorities Line Up Against Trump’s Tax Cuts for the Wealthy and Corporations

(WASHINGTON) — Americans for Tax Fairness, a coalition of 425 endorsing groups united in support of a fair tax system, is launching a new campaign against Donald Trump’s and Congressional Republicans’ plans to slash taxes for the wealthy and corporations, which will threaten deep cuts to Social Security, Medicare, Medicaid, public education and many more critical services.

The online hub of the campaign is www.StopTrumpTaxCuts.org, where visitors can see how Trump’s proposed tax cuts for the wealthy and corporations would seriously harm working families.

For example:

  • The $1.9 trillion in proposed cuts to Medicaid and other healthcare services in Trump’s budget is similar in size to the $1.4 trillion to $2 trillion business tax cut Trump is proposing, which would benefit hedge fund managers and real estate developers like Trump.
  • The $193 billion in cuts to nutrition assistance in the Trump budget is similar to the revenue lost from Trump’s elimination of the tax on estates worth more than $5.5 million, which would cost $240 billion.
  • A $72 billion cut in services for people with disabilities will pay for half of Trump’s $150 billion tax cut on investment income for the wealthy.

The overall size of Trump’s proposed budget cuts, $4.3 trillion, is remarkably similar to the cost of the tax cuts that Trump is proposing – between $3.5 trillion and $4.8 trillion. It’s almost as if Trump had planned it that way!

“We can’t afford tax cuts for the wealthy and corporations that are paid for by cuts to Social Security, Medicare, Medicaid, public education and other services that working families rely on,” said Frank Clemente, executive director of Americans for Tax Fairness. “Side-by-side, there’s no denying it: Trump’s draconian cuts to services that will harm working families are intended to pay for his massive tax giveaways to big corporations and the wealthy. Helping the American people understand what’s at stake is how we will win the tax fight.”

StopTrumpTaxCuts.org is an unbranded campaign hub that will provide resources for the public and allied groups in their fight against Trump’s tax cuts for the wealthy and corporations. It will include materials for organizers to use at protests, rallies, and town halls and provide regular updates on grassroots events and highlights from those events. ATF is coordinating a broad coalition of organizations mobilizing in Washington, D.C. and at the grassroots to oppose Trump’s tax giveaways.

Quotes from some of those coalition partners follow:

American Federation of State, County & Municipal Employees, Lee Saunders, International President: “We need a budget and tax policy that lifts up working people, not one that weakens vital services like Medicaid and Medicare, all to pay for massive tax cuts for corporations and the wealthy. President Trump and Members of Congress were elected to serve working people – people like nurses, firefighters, police officers and teachers who keep our communities healthy, safe and strong. We should put their priorities first, not the privileged and powerful.” 

AFL-CIO, William Samuel, Government Affairs Director: “President Trump and Republicans in Congress want us to believe our country is broke and we have no choice but to demand sacrifices from working people, but they want to waste trillions of dollars on tax giveaways for the wealthy and big corporations that send jobs offshore. We need a different approach that invests in good-paying jobs for working people in America and eliminates all tax incentives for corporations to send jobs offshore and stash their profits overseas.”

Center for American Progress, Winnie Stachelberg, Executive Vice President, External Affairs: “The American people won’t be taken in by this scam again. They know from experience under the Bush era that tax cuts for millionaires and corporations will not benefit the U.S. economy, jobs, or the middle class. It’s frankly offensive that the Trump administration and Congressional Republican leaders continue to push this myth at a time when economic inequality and corporate profits are at historically high levels. Corporations and the wealthy already don’t pay their fair share, and giving them even more tax cuts would further threaten our health care, housing, transportation and schools.” 

Coalition on Human Needs, Deborah Weinstein, Executive Director: “First, Trump tried to repeal health care for millions to pay for tax cuts for the rich and drug and insurance companies. Americans rejected that, but now Trump is back with something even worse: trillions in tax cuts for corporations and the rich paid for by taking away health care, food, housing, education, job training, and many other vital services from millions of Americans. Don’t be fooled: this is a plan to make America weaker, poorer, and sicker, so the rich can get richer.”

Daily Kos, Mara Schechter, Campaign Director: “The massive tax cuts for the top 1% and big corporations that Trump and Paul Ryan are proposing are an assault on Social Security, Medicare, Medicaid and so much more. Just as we did in opposing the repeal of the Affordable Care Act, Daily Kos will mobilize our millions of online supporters against this unprecedented transfer of wealth from working families to the wealthy few.” 

Economic Policy Institute, Larry Mishel, President: “President Trump and Republican leaders in Congress will try to sell their tax cuts for the rich and wealthy corporations as a magic elixir that will create jobs and grow the economy. But they will generate neither economic nor wage growth for the vast majority. Corporate profits are already near record highs and corporate taxes as a share of the economy at record lows. It’s time they paid their fair share.”  

Indivisible Project, Angel Padilla, Policy Director: “Republicans think they can trick the American people into supporting their massive tax cuts for the wealthy and corporations by calling it ‘tax reform’ and using the vaguest terms possible to talk about what they’re doing. We know their game: this is nothing but a plan to cut taxes for the wealthy and corporations paid for by taking away Medicaid, Medicare, and other basic services. The American people didn’t support tax cuts for the rich when they were in the Republican health care bill and they don’t support them through this ‘tax reform’ charade either.”

The Leadership Conference on Civil and Human Rights, Vanita Gupta, President and CEO: StopTrumpTaxCuts.org will highlight who will benefit from the Trump tax cuts— millionaires, billionaires, and wealthy corporations—and who will be hurt, which is the rest of us. By slashing assistance to the most vulnerable and by cutting crucial programs like Social Security Disability Insurance, Medicaid, and food assistance, Trump will subsidize his tax cuts. This website should help everyone see clearly what is at stake for them and their families in this tax and budget fight and what they can do to make their voices heard.”

MomsRising.org, Kristin Rowe-Finkbeiner, CEO and Executive Director: “President Trump’s plan to slash taxes on the wealthy and corporations would be a disaster for the country. It would wreak havoc on our economy and punish families that are already struggling to get by, redistributing wealth in ways that perpetuate and deepen inequities. This is not the right direction for our country. We need a plan that boosts our economy by investing in working families and strengthening programs like the Earned Income Tax Credit and the Child Tax Credit, while at the same time investing in programs that boost health care, education, nutrition and safety. The Trump plan would threaten the wellbeing of women, communities of color, families, people who live in rural areas, and all those who struggle financially. Its enactment would create a crisis for our nation.”

National Women’s Law Center, Anna Chu, Vice President for Income Security and Education: “Millionaires, billionaires, and big corporations certainly don’t need any more tax breaks. But that’s exactly what the administration proposes. Instead, we must invest in women and families, work to secure higher wages that will put more money in the pockets of families, expand access to affordable health care, and provide services that are critical supports for people in need. Trump’s misguided tax giveaway for the rich and corporations is the last thing America needs.”

People’s Action, LeeAnn Hall, Co-Director: “The voices in the White House and Congress who are championing more tax breaks for the wealthy and corporations, and cuts in programs that provide necessary support for the poor, the sick, children and the elderly, do not speak for us. The millions of us who rose up against the Trump-Republican health care repeal will continue to rise up to defend and strengthen Medicare, Medicaid and Social Security, and insist that the wealthy pay their fair share for the services that sustain our communities.”

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