As of Thursday, November 16, 2017
To the editor:
Representative Walden and the House Republicans claim that their new tax bill will create “tax relief for the middle class.” However, nonpartisan analysis of the measure demonstrates that it gives the vast majority of tax breaks to the wealthiest Americans. And the share of benefits going to the richest citizens grows even larger over time.
The wealthiest 1 percent of all Americans, who make more than $730,000 per year, would get 31 percent of all tax breaks once the bill were to become law. But after ten years, their share would increase to 48 percent of all benefits, while the tax reductions going to middle class and low income families would decrease. In fact, one-quarter of all families would pay more in taxes by 2027. Millionaires would enjoy the biggest tax cuts of all due to the corporate tax cuts, the elimination of the estate tax and alternative minimum tax, reduced tax rates on higher incomes, and the creation of a new special loophole on so-called “pass-through business income.”
One of the harshest ways that the House plan hurts middle-class families is by eliminating the medical expense deduction, which is used by millions of families each year. This means that in years when families receive high medical bills that are not covered by health insurance, many will face dramatic increases in their federal tax bill compared to current law.
Recent students would also be hurt, as taxpayers could no longer deduct student loan interest from their taxable income.
It is outrageous that Walden and the Republicans have talked for many years about lowering the federal debt, but now that they are in charge of all branches of government, the Congressional Budget Office determined that their proposed tax bill would increase the ballooning federal debt by an astounding $1.7 billion over ten years!