The House Tax Bill will go to the House floor for a vote this coming week. They are voting on a bill that passed the House Ways and Means Committee along party lines. On the Senate side, the Senate Finance Committee will begin work on their version of the Tax Bill on Monday. We need to light up the phones and tell our Members of Congress they need to oppose this tax hike on the middle class.

BACKGROUND:

“It is a testament to the power of self-delusion that Republicans have convinced themselves that their political self-interest demands that they pass a deeply unpopular tax-cut plan.” New York Magazine

The new tax bill released by the House GOP is a travesty that will injure ordinary Americans. But most Americans are not fooled by this charade: according to ABC, Americans oppose the Republican tax plan by a 17-pt. margin: 50-33%.  And 60% say it favors the wealthy.

Here is why:

The plan heavily favors businesses and corporations, which receive ⅔ of the nearly $1 trillion dollars in cuts, and would repeal a host of taxes paid by the richest households, including those inheriting estates worth millions of dollars. Even worse, the GOP plan actually raises taxes on many middle class people in order to generate the money needed to accommodate cuts that benefit the 1%.  As outlined, the plan would:

1. Permanently slash the corporate tax rate from 35 to 20%. This change is estimated to reduce federal revenues by $1.5 trillion over the next decade alone

2. Repeal taxes paid by the richest 1% of Americans, including the inheritance tax placed on estates worth millions of dollars

3. Eliminate the alternative minimum tax, which would affect 4.5 million families this year alone, and would roughly double the standard deduction for middle-class families

All of this means that:

• For millions of people making less than $100,000, taxes would go up

• For many small businesses, filing would be more complicated - “the maze of caveats will make life hell for small businesses”

• The plan adds trillions in debt over 20 years, making it nearly useless as a blueprint for the Senate

• There will be deep cuts to Medicaid, Medicare, Social Security, and education (planned for spring 2018)

• Access to higher education will be compromised

Even worse, to keep its net cost down to $1.5 trillion and to offset the corporate and estate tax cuts, Republicans want to repeal many tax credits that benefit ordinary working Americans such as:

• The Adoption tax credit

• The tax credit to small businesses who accommodate disabled employees

• The Work Opportunity Tax Credit, which creates an incentive for hiring veterans

• Continuing education tax credits (Lifetime Learning and Hope Scholarship)

The GOP Tax Bill would negatively impact students and their families in the changes it makes to many education benefits: the student loan interest deduction is cut and the tax-free status of employer tuition reimbursements is eliminated under this new plan.

The American Association of State College and Universities said in a statement soon after the bill was released that the tax plan will “undermine public higher education” through changes to tax breaks for students and families, as well as tax benefits for colleges, among other aspects of the plan. “These changes together would make college less affordable for the vast majority of students who access higher education through public colleges and universities,” the group said.

The plan also outlines a new tax requirement for university endowments. The Association of American Universities, which represents 62 prestigious research universities, said taxing endowments is “short-sighted move that will only harm students and families.”

Let’s be clear: the GOP Tax Bill is a massive giveaway to the wealthy and corporations, paid for by raising taxes on some middle class families and forcing deep cuts to Medicaid, Medicare, Social Security, and education. As Jerry Howard, the chief executive of the National Association of Homebuilders, says, “They are picking rich Americans and corporations over small businesses and the middle class.”

Congress should not pick the  “winners” and “losers” of the American people.  Permanent corporate tax cuts means less money for schools and roads and healthcare. It helps the "global economic elite" rather than us at home.

Tell your Congressional representatives NO to the Trump Tax Scam!