Trump, GOP tax cuts aren’t worth it

Added October 10th, 2017 by Rachel Richards | Email This Entry Email This Entry
Rachel Richards

Ask anyone if they want a tax cut and more money in their pocket at the end of the year, and the answer will likely be yes.

But what if you found out that you, as a middle-class Michiganian, would bring home a few hundred dollars more a year, while the richest 1% in Michigan, those making over $500,000 a year, would take home 174 times what you got?

And what if these tax cuts also came at the expense of services that Michiganians rely on every day— food assistance, healthcare coverage, education, financial aid for college, and many other programs that help Michigan residents make ends meet?

Because that’s exactly what is going on in Congress right now.

Congress and President Donald Trump are talking about giving average Americans a tax cut. Their blueprint for tax reform uses buzz words like “tax relief for middle-class families,” “simplicity,” and “providing greater fairness.” The blueprint makes it sound like a good deal.

However, when you look at the details, the proposal is not much different than the vague framework that was released months ago, which would target the greatest tax relief to wealthy corporations and taxpayers and would be paid for by significant cuts to the things we rely on most.ITEP Graphic- Trump Tax Plan & MI

And when we look at the numbers, the message is clear. In Michigan, 62.5% of the tax savings would go to those in the top 1%, who make more than $500,000, according to recent data from the Institute on Taxation and Economic Policy. While the poorest Michigan residents would see an average tax cut of $70—and the Michigan middle class a $440 tax cut—those at the top would see a tax cut of about $76,560. Michigan’s millionaires, who represent just 0.2% of the state’s population, would get 47.3% of the cuts, at an average of $253,500.

What’s more is that these deficit-increasing tax cuts would come at a cost to programs that millions of Michigan residents use and rely on day after day.

Budget proposals from President Trump, the House and the Senate all seem to follow the same guidelines and plan to slash healthcare coverage including Medicaid and Medicare, leave more Michigan households hungry by cutting vital food assistance and make deep cuts to programs that help Michigan residents make ends meet. They also plan deep cuts to non-defense discretionary spending, which helps support our K-12 schools, environmental protection, low-income housing and infrastructure, among other needs. These are programs that are necessary to continuing to move the state and the nation—and their economies—forward.

All of these cuts just to put more money into the pockets of our wealthiest corporations and Michiganians.

These tax cuts aren’t worth their price.

— Rachel Richards, Legislative Director

no comments

Leave a Reply