In my last column, I discussed how President Trump’s tax cut bill takes the $1 trillion he promised to invest in America’s infrastructure and gives it away to giant corporations, millionaires and billionaires instead. But that’s only one of many ways this monstrosity of a bill would damage our nation.
Consider that the Senate bill would:
- Force state and local governments to cut back on their own infrastructure investments, which are key to building and repairing roads, bridges, schools and most other public works. By eliminating the deduction for state and local income and property taxes, the bill will make it harder for states, counties, cities and towns to raise the revenues they need.
- Take man-hours away from OPCMIA members. In addition to the infrastructure cuts noted above, the bill restricts the home mortgage deduction and ends the property tax deduction, which will harm the home-building industry. Plus, the bill’s $1.4 trillion increase on the deficit will likely lead to higher interest rates, which will harm all sectors of the construction industry.
- Raise taxes on many OPCMIA members. Independent estimates show that in 2021, the bill will cause people with incomes of under $40,000 to pay more in taxes, on average, than they do under current law. By 2027, most people making less than $75,000 would see their taxes increase, too.
- Cripple labor and tilt the playing field even more in favor of management by ending the tax deduction for union dues while allowing corporations to deduct the fees they pay to union-busting firms.
- Undermine retirees’ health and financial security by cutting Medicare, Medicaid and Social Security. The bill would trigger an automatic cut of $25 billion to Medicare in 2018, with more to come in future years. And the giant hole the bill blows in the deficit will surely lead to fierce efforts by bill proponents to cut or privatize Social Security, Medicare and Medicaid in the future.
- Favors corporations over people. The bill’s massive tax giveaways to corporations are permanent. But the small tax cuts given to individuals and families are only temporary.
- Redistribute wealth from working families to the wealthiest Americans. By 2027, the bottom 40 percent of households would pay more in taxes, while the top 1 percent — with incomes of $730,000 or more — would get a $32,500 tax cut, according to the Tax Policy Center. And those in the top 0.1 percent would have their taxes cut by $208,000, on average. Overall, 62 percent of the bill’s benefits go to the top 1 percent, leaving just 38 percent to be divided among the bottom 99 percent.
For all these reasons and more, I urge our members to call their senators today at 1-844-899-9913 and tell them to reject this anti-worker, job-killing tax plan.
Daniel E. Stepano
UPDATE: In the early morning hours of December 2nd, 51 members of the U.S. Senate betrayed Americas working families by passing this monstrosity of a tax bill. Now the legislation moves to a House-Senate Conference Committee to iron out the differences between their two bills. Then, the House and Senate will vote on the Conference Report our last chance to defeat this appalling legislation. Please call your senators and representatives at 1-844-899-9913 and tell them to vote NO on the tax bill conference report.