11/13: HR Tax Scam Week!
The Trump Tax Scam 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, and Social Security down the road. Republicans want to eliminate taxes that only affect the wealthiest individuals and let corporations pay even less than they already do. The vast majority of the benefits from the Republicans’ plan will go to the top 1%, which will exacerbate our country’s massive racial wealth gap.
The fight in Congress over the Trump Tax Scam is happening right now. Republicans want to use a special process in the Senate called “reconciliation” to jam the Trump Tax Scam through with only 51 votes. This is what they tried to do with TrumpCare—and you stopped them with your constituent power. To use reconciliation, the House and Senate had to pass a budget resolution, which they finished on October 26. Nearly every Republican in both the House and Senate voted for this budget resolution, which tees up huge tax cuts for the rich and corporations that jeopardize our commitment to Medicaid, Medicare, and Social Security.
NAME OF ISSUE: House Tax Bill
SUGGESTED MEMBER SCRIPT:
“Hi, my name is …, I’m a constituent from “i.e., Durango” zip code 81***. I’m calling to let Representative Tipton know that I strongly oppose the tax bill released by the House Republicans. This tax bill is a scam that will give massive cuts to the wealthy, paid for by forcing deep cuts to critical programs like Medicare, Medicaid and Social Security down the line.”
WHO TO CONTACT: US HOUSE OF REPRESENTATIVES
- Representative Scott Tipton
(970) 259-1490 (Durango) 202-225-4761 (DC Office)
WHEN IS MEMBER TO CALL Nov. 14 and 15th
WHY THIS IS IMPORTANT:
- the bill would reduce the current marginal income tax brackets to four from seven — 12, 25, 35 and 39.6 percent
- the rate applied to the lowest income bracket would increase, the first $24,000 for a couple would be deductible
- repeal the individual Alternative Minimum Tax — which primarily affects households with incomes from $200,000 to $1 million — and would maintain preferential rates for investment income.
- repeal the estate tax after six years, in the meantime doubling the amount of inherited wealth that is exempt from the tax to $11 million from $5.5 million.
- nearly double the amount of the standard deduction, to $12,000 from $6,350 for a single filer and to $24,000 from $12,700 for a married couple
- eliminates most itemized deductions, keeping in place just three — deductions for mortgage interest, charitable contributions and state and local property taxes
- mortgage interest deduction would be capped for newly purchased homes up to $500,000, and the property tax deduction would be capped at $10,000
- one of the largest deductions that would be eliminated is the one for state and local income taxes, repealing would make it more difficult for states and localities to provide vital services such as education, healthcare, and income support because the after-tax cost of paying state and local taxes will increase for residents who used to itemize
- largest deduction claimed by taxpayers in the lowest income group is for medical expenses, which is eliminated in the bill
- repeal the personal exemption, which is currently $4,050 per taxpayer and dependent claimed on a return
- increases the child tax credit to $1,600 from $1,000 and creates a new $300 credit for filers, spouses, and non-child dependents; new $300 credit expires after five years, and the increased child tax credit won’t make up for the loss in personal exemptions
- changes measure of inflation to chained C.P.I. which would result in a tax increase
- the most expensive change to taxpayers in the bill is a reduction of the corporate tax rate to 20 percent from 35 percent
- limits to 25 percent the tax rate for “pass through” businesses rather than the 39.6% rate for sole proprietorships, partnerships and S corporations that currently pay taxes at the individual rate of their owners – 70 percent of partnership income accrues to the top 1%
- adds $1.5 Trillion to the deficit with half of tax cut going to top 1%
- former students won’t be able to deduct student loan interest
- repeals Johnson Amendment – churches would be allowed to endorse political candidates while keeping tax-exempt status, adding to the problem of dark money in politics.
For further information, click on links below: