Thursday, November 16th, 2017
House Republicans voted today to increase taxes on middle class families and provide massive giveaways to billionaires and wealthy corporations. While Senate Republicans debate their tax plan in committee, the latest edition calls for permanent tax breaks for the richest, paid for by cutting health care and other programs Social Security, Medicare, Medicaid, and education that working Alabama families rely on every day.
Alabama taxpayers deserve a balanced tax reform plan that strengthens our workforce, and creates economic opportunities. But the Republican tax plan is a bad deal for millions of working families across the country who will be will be worse off under this bill than if Congress had done nothing. On top of permanently raising taxes on millions of Americans, the Republican tax bill will cost American jobs by incentivizing big corporations to move American jobs overseas and making it harder for small businesses on Main Street to compete. It’s long-past time for Republicans to get serious about actual tax reform and join Democrats in building an economy that works for everyone.
Here’s a look at the impact of the Republican tax plan in Alabama:
● The House Republican tax scam hurts teachers in Alabama, by repealing a tax credit for teachers who buy their own school supplies.
● College students in Alabama will also be hurt, because the House tax scam makes student loans more expensive. More than 127,000 graduates in Alabama take advantage of the student loan interest deduction House Republicans want to eliminate, saving $1,049 on average.
● Alabama’s seniors will find it harder to save for retirement or cover their medical bills. In fact, the House GOP tax scam would take away all Alabamians’ ability to deduct their medical expenses. Nearly 142,000 Alabama residents deducted their medical expenses in 2014, saving $8,732 on average.
● The House Republican tax bill could also force $25 billion in automatic cuts to Medicare next year. More than 968,000 Alabamians who rely on Medicare could be at risk.
● Workers in Alabama would be hurt by the corporate tax giveaway. The Republican tax plan incentivizes large companies to move jobs overseas by giving them a 0% rate on most foreign profits. While big corporations take advantage of this loophole, small businesses on Main Street will find it harder to compete.
● The GOP tax bill threatens to take the state and local tax deduction (SALT) away from tens of millions of households nationwide. The deduction ensures that Americans are not taxed twice on the same income. In Alabama, more than 400,000 residents would no longer be able to use the state and local deduction to save hard-earned money on their federal tax returns under the House tax bill.
● The House Republican tax bill is a giant giveaway to wealthy corporations and rich Alabamians, at the expense of everyone else:
● The Senate Republican tax bill also benefits the wealthiest Alabama taxpayers, while hurting middle-class families in our state:
● Distressed and rural communities could lose an important program that funds hundreds of hospitals, daycare facilities, alternative energy projects, and small businesses. The House GOP plan ends the New Market Tax Credits program, which has spurred over $550 million in community investments in Alabama and created over 3,000 full-time jobs since 2003.
● Clean and renewable energy businesses looking to invest and build in Alabama would be at a disadvantage under the House tax plan. The bill would phase out popular tax credits for wind and solar energy that renewable and natural energy industries in Alabama rely on, making it more difficult for Alabama businesses to qualify for the construction tax credits.
● Alabamians recovering from a natural disaster, such as a flood, hurricane, tornado, or fire would be more vulnerable, because the House Republican tax bill eliminates a critical infrastructure financing measure designed to help states rebuild after sudden events.