The tax legislation Senate Republicans are expected to bring to the floor this week compromises donations to nonprofits that touch virtually every part of American life, from education and health care to financial literacy and public lands. Estimates of similar plans show that annual charitable contributions could drop by as much as $11 billion under the Republican tax proposal.
The Senate GOP tax bill hurts every state’s ability to fund its schools, yanking support for education investments in our children. Senate Republicans’ plan to eliminate the state and local tax (SALT) deduction prevents families from recouping many costs, such as funding local public schools. Wiping out the SALT deduction would jeopardize education revenues and hundreds, even thousands, of teaching positions in each state.
The Senate tax cut proposal makes the GOP’s priorities clear—once the bill is fully implemented, it will raise taxes on individuals in order to make tax cuts for corporations permanent. In 2027, the bill raises taxes on the individual side of the code by $43 billion while cutting taxes on corporations by $54 billion. Because corporate equity is mostly owned by wealthy Americans, this has the effect of making the tax code more regressive—shifting the tax burden more towards working families.
As attention shifts to the Senate bill’s elimination of the individual mandate in the Affordable Care Act, which could increase the number of uninsured by 13 million, it is important to highlight that the House Republican tax plan also wades into health care, raising taxes on millions of Americans with high medical costs through repeal of the medical expenses deduction.
Nov 16 2017
House GOP Tax Plan Makes Owning a Home Harder
Homeownership plays a fundamental role in the pursuit of the American Dream. Yet, the House Republican tax plan erodes the benefits of homeownership by increasing its costs and making it harder to save for a down payment.
Congressional Republicans claim that their tax plan will put more money in the pockets of working Americans. But under the House bill nearly 24 million working Americans would see higher taxes. These Americans include teachers who educate our children, policemen who protect our communities, and construction workers who help rebuild our nation’s road and bridges.
Nov 15 2017
Wait, the GOP Tax Plan Means Medicare Cuts?
Republicans continue to press for changes to our nation’s health care system that will upend markets, breed uncertainty, and leave millions wondering whether they will have health coverage. Now, the Republican tax plan threatens significant cuts to the Medicare program. A little-known law could mean that the passage of the GOP tax reform bill will invoke massive cuts to the Medicare program, totaling around $410 billion over ten years.
Millions of working families would see tax increases under the Senate Republican tax plan. The nonpartisan Joint Committee on Taxation projects that 22 million households will see a tax increase of at least $100 in the year 2027, including 16 million who would see their taxes increase by more than $500. Most of these will be middle-class households, including 7 million households earning between $50,000 and $100,000 seeing a tax increase of at least $100.
Nov 09 2017
House GOP Plan Raises Taxes on Working Families
President Trump and House Republicans continue to claim that their tax plan will help the middle class. Yet, the bill released by House Republicans will increase taxes for millions of working families, rising from 8 million households in 2019 to 24 million in 2027.
Nov 09 2017
Senate GOP Plans to Tax Americans Twice
President Trump and Senate Republicans’ tax proposal threatens to take the state and local tax deduction (SALT) away from over 40 million households. State and local deductions are not a partisan issue—both red and blue state families use them to save hard-earned money on their federal tax returns. The SALT deduction ensures Americans are not taxed twice on the same income. These deductions include write-offs for state sales, income, and property taxes. By eliminating the deduction, working Americans will face tax hikes costing hundreds or even thousands of dollars.