U.S. Senate budget plan slashes services for struggling Michiganians to push huge tax cuts for very wealthy

For Immediate Release
October 20, 2017

Contact:
Alex Rossman
arossman@mlpp.org
517.487.5436

Michigan’s Senators stand up for the people, but preferential budget primarily passes along party lines

LANSING—The United States Senate passed its budget resolution last night, including drastic cuts to programs and services that support hardworking Michiganians to fund $1.5 trillion in unpaid-for tax cuts largely for the wealthy and profitable corporations.

The budget sets up a fast-track, partisan process for passing the Republican tax plan with just 51 votes—the same process the Senate used to try to force through their repeal of the Affordable Care Act. The tax plan would overwhelmingly benefit those at the top of the economic ladder: the top 1 percent in Michigan would receive 62.5 percent of the tax cuts while the bottom 20 percent of Michiganians would get just 1.1 percent, according to the Institute on Taxation and Economic Policy (ITEP). Michigan households that make over a million dollars each year (only .2 percent of Michigan’s population) would see an average tax cut of $253,500, ITEP found. The middle fifth of households in Michigan, people who are literally the state’s “middle class,” would receive just 7.1 percent of the tax cuts that go to Michigan under the framework at an average of $440.

“Like the House’s federal budget passed two weeks ago, the Senate’s budget and corresponding tax cuts line the pockets of the wealthy and profitable corporations at the expense of everyday Michiganians,” said Gilda Z. Jacobs, President and CEO of the Michigan League for Public Policy. “Michigan residents who are struggling to get by suffer now, with immediate cuts to critical programs that help Michigan families thrive, including health coverage, tax credits for families with low incomes, and basic assistance for seniors and people with disabilities living in poverty, and they will suffer later, when dramatically higher deficits would ultimately force cuts to healthcare, education, infrastructure and other building blocks of economic growth.”

The Michigan League for Public Policy created a fact sheet on the top threats to Michigan in the federal budget, and has also drawn attention to the devastating impact of the tax plan drawn up by President Trump and congressional Republicans. An analysis by the League shows that Michigan is the second-most reliant on federal funds in the U.S., with 42 percent of our state budget coming from federal funds.

“For too long, many Michigan residents have been getting left behind by state and federal policies, and these budgets and tax plans are only going to widen the gap further,” Jacobs said. “Instead of tax cuts that benefit those who need it the least, Congress should be prioritizing budget and tax policies that do not add to the deficit while strengthening our economy and supporting working families through investment in education, housing, infrastructure and more. We’re grateful to Senators Debbie Stabenow and Gary Peters for their understanding of this, and only wish the message would resonate with their colleagues across the aisle.”

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.