CALL TO ACTION: Paul Ryan and the House republicans are trying to push through another disastrous bill. This time it will cost A LOT in the form of higher taxes. All but the wealthiest of all Americans will see an increase in their tax bills or reductions to their tax benefits if this is passed as it is.
TO DO TODAY: Please do these two actions:
1). Call your Congressional Representatives today, ask them to Vote NO to these unfair tax increases known as the ‘Tax Cuts and Jobs Act’.
Find your representative here:
Sample Script: Hello Representative______________, Please do not approve the Tax Cuts and Jobs Act. It will further burden me and my family; and it hurts the middle class and poor of this country. I do not want more corporate welfare for the wealthiest of the wealthy.
And I do not approve of:
— The elimination of The State and Local Tax exemption deductions (SALT)
— The elimination of Estate tax (for estates larger than $5.6 Million)
— The elimination of personal and dependent children exemptions
— The elimination of itemized and charitable donation deductions,
— The elimination of student loan and tuition deductions, moving expense and medical deductions
2). Share this CTA with your rapid response teams. And remember, that in support of #45, Paul Ryan and other top GOP leadership is pushing hard to get this bill through with limited discussion and amendments by the end of this week.
BACKGROUND : The goal of the house republican’s tax reform plan, dubbed the “Tax Cuts and Jobs Act”, is clear: to provide corporations, the ultra wealthy, and people making over $950,000 per year, with as many tax breaks as possible. Meanwhile hard working Americans with income in the bottom 35% of all earners, will get no tax cuts and everyone above that will have significant increases in their tax bill. Lastly, a huge deficit of over $1.5 Trillion dollars is expected to be created over the next ten years, if this plan is approved. This means for years and years, fewer services and infrastructure can be provided across the nation. This will affect education budgets, transportation and all manner of public health and safety, as well as infrastructure.
One of the key components of the bill, calls for the elimination of the state and local tax deduction known as SALT. The SALT deduction allows people to deduct both property taxes and either state income taxes OR sales taxes, which ever is higher. Under the proposed law, taxpayers will be limited on property tax deductions; And will get NO deduction for state or sales tax payments. By eliminating SALT and capping property tax deductions, people in high tax states like New Jersey, New York, and California, will likely pay much higher taxes. Even many republican lawmakers who represent hi-tech states, which also happen to be blue states, strongly oppose this provision and it's profound impact on constituents. Millions of taxpayers in all states could end up paying higher taxes because of the dramatic changes to these deductions. It should also be noted that elimination of the SALT is double taxation and may not even be legal.
Nevertheless, The GOP rhetoric persists in claiming that their plan is designed to cut taxes for the middle class. But it is clear that their primary goal is helping the wealthy avoid paying their fair share in taxes. If implemented, these changes would result in the transfer of great wealth from the working class to the rich and will continue to exacerbate income inequality in this country.
The bill would:
*Permanently lower the corporate tax rate from 35% to 20%
*Gradually phase out the estate tax (which only applies to estates greater than $5.6 million in assets)
- dependent children exemptions
- personal exemptions
- student loan interest and tuition deductions
- adoption cost deductions
- moving expense deductions
- alimony payment deductions
- medical cost deductions
- charitable gift donation deductions
- mortgage interest payment deductions for future home buyers
- property tax deductions
- capital gains on housing deductions
- student loan interest and tuition deductions
- While the bill would increase the standard deduction, to make up for the elimination of itemized deductions, the increase is only about 15%. When accounting for the loss of the dependent and personal exemptions, this will be a net loss for almost all Americans. Furthermore, with the loss of charity tax deductions, many charities are expected to flounder and fail from a substantial loss in revenues, since no financial incentive will remain when giving to them. And as belts tighten, fewer dollars are available for families to “give” away.
ADDITIONAL RESOURCES :
Information for this CTA was provided by Five Calls. Five Calls is a group of like-minded volunteers who want to make advocacy accessible. Founded and run by husband & wife team Nick and Rebecca. It is supported by many dedicated volunteers who contribute to the site.