The Senate passed the tax legislation that gives big corporations and millionaires tax breaks at the expense of our working families in a vote of 51-49 on Saturday, Dec. 2. The next step for the bill is to go to conference, where the House and Senate will reconcile differences between the bills.
Update: The disastrous tax bill is likely to be on the floor of both chambers next week. We need to keep the pressure. Call 1-855-713-0060 to tell Congress: Stop the attacks on working Americans and the programs our families depend on. Vote NO on this disastrous tax plan. Call your representative to let them know working people are holding them accountable on this tax plan now and next year in the voting booth.
If successful, this disastrous tax bill would:
- Raise taxes on families earning less than $75,000, and threaten Medicaid & Pell Grants
- Hurt people with student loans
- Leave 13 million people without health care coverage, and raise premium costs
- Raise taxes for California residents and others living in states with high local and state taxes
- Take away the Child Tax Credit from millions of working families
From the Washington Post: “The Senate Republican tax plan gives substantial tax cuts and benefits to Americans earning more than $100,000 a year, while the nation’s poorest would be worse off, according to a report released Sunday by the nonpartisan Congressional Budget Office.”
And, “the CBO has calculated that health insurance premiums would rise if this bill becomes law, leading 4 million Americans to lose health insurance by 2019 and 13 million to lose insurance by 2027.”
The impacts will be particularly disastrous in California.
Tax Increases on California’s Middle Class:
- 28% of California households would see their taxes increase in 2027 by $4,180 on average.
- 24% of households making between $39,390 and $68,690 would see their taxes increase by $970 on average.
- 27% of households making between $68,690 and $109,160 would see their taxes increase by $1,610 on average.
- 39% of households making between $109,160 and $186,900 would see their taxes increase by $2,780 on average. [Sources: Institute on Taxation and Economic Policy]
Programs at Risk Due to Tax Cuts
To pay for their massive tax cuts to the wealthy and corporations, the GOP has proposed huge cuts to services that working families rely on. The budget resolution approved by Congress would cut:
- $1.3 trillion from Medicaid and other health care programs over 10 years
- $470 billion from Medicare over 10 years
- $650 billion from income security programs, which may include cuts to the Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families.
- Also at risk are Pell Grants and other financial aid to help students afford college. [Source: CBPP]
History has shown us that giving massive tax cuts to millionaires and corporations never results in the benefits “trickling down” to working families. However, this bill gives more tax breaks to these groups while hurting working Americans who are trying put food on the table, start a business, send their children to college, save for their retirement and buy a home. If passed, these tax cuts would result in cuts to healthcare, education and other vital programs our communities depend on.
Instead of trying to jam through tax giveaways for the wealthy and corporations and gut the Affordable Care Act (ACA), Congress should be addressing pressing national challenges like—ensuring our communities have good health care and protecting immigrants families. Congress should be protecting the DREAMers, and those immigrants in the Temporary Protected Status (TPS) programs, addressing the needs of Puerto Rico and other areas ravaged by natural disasters, and preventing a government shutdown, which risks our communities’ ability to access healthcare, education, food, heat, jobs, and training.
The tax bill is a massive tax giveaway for millionaires and corporations that will raise taxes on millions of working families and result in deep cuts to healthcare, education and other priorities for our families. By 2027 millionaires would enjoy average tax cuts of $5,580 while families earning less than $75,000 a year would pay more taxes! The plan includes $1.5 trillion in tax cuts that are not paid for. This will trigger cuts to education, Medicare, & Medicaid down the road.
The tax bill makes it harder for students to afford college by eliminating $71 billion in college tax breaks over 10 years, including ending the deduction for interest paid on student loans; the tax break for tuition discounts that colleges give graduate assistants in return for teaching classes; and the tax break for all employer-provided educational assistance programs. And if the tax scam passes, it could cue $150 billion in automatic spending cuts to Pell grants and other programs.
The Senate tax bill would take away healthcare away from 13 million people and increase healthcare premiums by repealing the Affordable Care Act requirement that individuals purchase healthcare coverage. This amounts to repeal without any replacement.
Like the House bill, the Senate tax plan eliminates the state and local income tax and sales tax deduction —disproportionately hurting progressive states and local communities. The Senate bill goes even further than the House bill to fully eliminate the deduction for state and local taxes. Almost one-third of the state and local tax deduction is claimed by taxpayers in California and New York.
The tax bill excludes millions of working families from its Child Tax Credit (CTC) expansion—including some immigrant families who file taxes with an Individual Taxpayer Identification Number. The tax plan rolls back eligibility for the Child Tax Credit by requiring a social security number for an eligible child to claim the CTC—excluding 1 million children in immigrant families. In addition, CTC expansion leaves out millions of children from the lowest income families even as it expands eligibility for higher income families.
“This proposal would be devastating to poor and middle-class families, particularly in California, all to pay for tax cuts for the super-rich. Join us in stopping these tax cuts!”
– Riko Mendez, SEIU Local 521 Chief Elected Officer
Take Action Today!
1- Tell Congress to vote no on this tax bill: 1-855-713-0060.
(You may be redirected to your nearest Republican member.)
3- Tweet the following California representatives:
Darrell Issa @DarrellIssa
David Valadao @RepDavidValadao
Steve Knight @SteveKnight25
Paul Cook @RepPaulCook
Ed Royce @RepEdRoyce
Doug LaMalfa @RepLaMalfa
Sample Tweet: Instead of helping working families, the #GOPtaxplan would hurt our communities. I urge you to vote NO.
“No matter how the Trump Administration and Congressional leaders try to spin these tax provisions, they are just wrong for working families as well as state and local governments, who will likely be forced to cut critical healthcare, education and infrastructure programs and eliminate good jobs,” said SEIU International President Mary Kay Henry in a statement. “SEIU members and our allies will fight back against these efforts, just as we have impeded attacks on our healthcare.”
- Read the entire statement here.
- Watch former Secretary of Labor Robert Reich’s video about how the tax cuts will cut funding for Medicare, Medicaid and Social Security.
Californians would be especially hurt by the tax bill. For instance, the bill sets a cap on the mortgage interest deduction and on the state and local tax deduction (SALT) that would significantly increase the taxes of middle-income households. It’s likely that this tax bill together with the federal budget will set into motions cuts to Medicaid, Medicare, and other vital public services that will hurt the most vulnerable populations in California.
Read more here.