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Joint Economic Committee Democrats Chairman - Rep. Don Beyer (D-VA)

House GOP Tax Plan Robs Local Communities

On the campaign trail, President Trump promised Americans that revitalizing our nation’s neighborhoods was one of his top priorities. Now, House Republicans are taking aim at tax incentives that lift up working families and promote infrastructure spending in struggling communities across the nation. These incentives are supported by both Republicans and Democrats, and benefit manufacturing workers, health care professionals, and school teachers, among others. Eliminating them would cripple economic progress in thousands of rural and urban communities, stripping working Americans of new job opportunities, higher wages, and affordable housing.

Endangers Community Investments in Families. The House GOP plan ends the New Market Tax Credits (NMTCs) program, which boosts economic opportunity in distressed neighborhoods and rural communities. Through a federal tax credit, the NMTC funds hundreds of hospitals, daycare facilities, alternative energy projects, and small businesses each year, and has generated more than 750,000 jobs and $80 billion in community investments. In New Mexico alone, the NMTC has spurred over $600 million in community investments and created over 4,000 full-time jobs since 2003.

Puts Local Budgets At Risk. The plan also wipes out private activity bonds (PABs), which support a range of community investments, including colleges, rural cooperatives, airports, and affordable housing units. Eliminating PABs could jeopardize hundreds of thousands of jobs, reduce the number of rental homes by nearly 1 million over the next decade, and raise the cost of borrowing for state and local governments by as much as 35 percent. Higher borrowing costs will squeeze local and state governments, forcing them to cut funding in key areas like infrastructure and education.