U.S. House Floor Vote Likely Week of Sept. 24
National Day of Action Friday, Sept. 21
Speaker Paul Ryan has announced that he plans a vote in the House of Representatives on a second round of tax cuts (#TaxScam2) before the end of September. We urge the progressive community to mobilize against more tax breaks for the rich and corporations that put healthcare, education and other services at risk. It’s a great opportunity to show working families that Republicans are not on their side; that they are doing the bidding of the wealthy and corrupt special interest campaign donors who have rigged the economy in their favor.
- Sept. 10, Monday: #TaxScam2 will be introduced
- Sept. 13, Thurs.: House Ways & Means Committee marks up bill for House floor action
- Sept. 15-24: House members at home for district work period and campaigning
- Sept. 21, Friday: National Day of Action against #TaxScam2
- Sept. 25-27: Possible House floor vote on #TaxScam2
WHY IS #TAXSCAM2 SO BAD?
It will add to the misery caused by the Trump-GOP tax cuts by making many of those tax cuts permanent (see reverse for more details). #TaxScam2 will hurt families because:
- It’s another huge giveaway that will likely cost another $3 trillion that mostly benefits the wealthy and corporate and business interests.
- To pay for these additional tax breaks Republicans will demand even deeper cuts to Medicare, Medicaid, Social Security, education and many other critical services.
- Like last year’s tax cuts, it will do nothing to raise workers’ wages, create good-paying jobs and reduce inequality. It will further rig the economy in favor of the rich and corporations.
WHAT’S THE PLAN?
We must educate the public about #TaxScam2 and show politicians that we are opposed to them siding with the rich and Wall Street over the rest of us. We are asking progressive forces to mobilize for a National Day of Action on Friday, Sept. 21, during the congressional recess when House members will be back home campaigning:
- Confront them at a campaign event or a protest at their district office
- Join a national online mobilization through Twitter, Facebook and email campaigning
We won the message war during the first round of the Trump-GOP tax scam. Public support for TaxScam1—the GOP’s “greatest” legislative achievement—is still under water. Let’s do the same during this second round and remind voters whose side their member of Congress is on.
HIGHLIGHTS OF #TAXSCAM2
As of Sept. 13, 2018
The costs of #TaxScam2 could be $3 trillion over 10 years—that’s more than TaxScam1, which cost about $2 trillion. To deal with the ballooning deficit caused by TaxScam1:
- Trump proposed slashing $1.3 trillion from Medicare, Medicaid and the Affordable Care Act (ACA) [Center on Budget and Policy Priorities (CBPP)]
- House Republicans proposed slashing $2 trillion from Medicare, Medicaid and the ACA [CBPP]. They also proposed $3 trillion in other cuts, including to:
- Food for families ($157 billion from SNAP)
- Veterans benefits ($59 billion)
- Transportation and infrastructure ($317 billion)
TaxScam1 also robbed the ACA of more than $300 billion to help pay for tax cuts for price-gouging drug companies and health insurers. As a result:
- 8 million people will lose health coverage. [Brookings Institution]
- ACA health plan insurance premiums will spike 10%, on average, most years for the next decade, adding $2,000 to a typical family’s insurance bill. [Center for American Progress]
- Premium increases will be even steeper for older adults, creating in effect an “age tax.” The average 64-year-old individual could face a $1,500 premium hike. [AARP]
COST & DISTRIBUTION OF #TAXSCAM2
- Cost: $2.8 to $3 trillion over 10 years—2026 to 2035 (not counting an expected corporate tax cut on new investments). The cost is $630 billion over the first three years. [CBPP] [Tax Policy Center]
- Tax cut for richest 1%: $40,000 on average. Bottom 40% (incomes below $55,000) would get an average tax cut of $285—less than $1 a day. [Tax Policy Center]
- Distribution: Richest fifth would get 65% of the tax cuts; middle fifth would get 10%; poorest fifth would get 2% [ITEP]
TAX POLICY CHANGES
#TaxScam2 will likely make permanent individual provisions of TaxScam1 that expire in 2025:
- Cuts in personal income tax rates
- Increases in the standard deductions, and the elimination of the personal exemption
- 20% deduction for pass-through business income, which mostly benefits the richest 1%
- Doubling value of estates & gifts exempted from tax (from $11 to $22 million a couple)
- Increasing the amount of income exempt from the Alternative Minimum Tax; the AMT ensures that wealthier taxpayers pay more in taxes than they would due to loopholes
- Expansions of the child tax credit
- Cap on the State and Local Tax (SALT) deduction and limitation to the mortgage interest deduction—these are tax increases