Health Care for Millions of Ohioans In Jeopardy so that Top 1% Can Get Massive Tax Cut; Meanwhile, 10% of Middle-Class Ohio Households Will Get a Tax INCREASE
On Thursday, the U.S. Senate is expected to vote on whether to approve a budget resolution that will set the framework for how much federal spending and taxes will be cut. The proposal would allow for a $1.5 trillion tax cut — which mostly benefits the wealthy and corporations — that is not paid for by closing loopholes, meaning the costs will be added to the deficit.
The ballooning of the deficit will jeopardize funding for programs such as Social Security, Medicare, Medicaid, education, and other services that America’s families rely on. Meanwhile, many middle-class families will see their taxes INCREASE under the Republican plan.
This threat to the basic living standards of America’s working families is not abstract. The Senate budget proposes $5.8 trillion in cuts to federal spending, including nearly $500 billion from Medicare and $1.3 trillion from Medicaid and other healthcare programs. Another $650 billion may be cut from income security programs, such as Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families. See data below for the effects on Ohio’s families.
“Republicans in Washington are proposing deep budget cuts to help set the stage for a tax plan written by the rich, for the rich, and paid for by the middle class. Senator Portman and his Republican colleagues will try to sell their tax plan under the guise of job growth and tax relief for working families, but Ohioans know better. This scheme will harm ordinary Ohio families by gutting programs that they rely on, all just to pass tax cuts that primarily benefit the one percent,” said For Ohio’s Future State Director Antonia Webb.
TAX CUTS FOR THE RICHEST 1% IN OHIO FROM THE TRUMP-GOP TAX PLAN
TAX INCREASES ON THE MIDDLE CLASS IN OHIO FROM THE TRUMP-GOP TAX PLAN
EFFECT ON OHIO OF REPEALING THE STATE AND LOCAL TAX DEDUCTION (SALT)
The Trump-GOP tax plan repeals the SALT deduction. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. SALT helps taxpayers, many of them middle-class, avoid being double taxed at the federal level.
EFFECT ON OHIO OF REPEALING THE FEDERAL ESTATE TAX
The Trump-GOP tax plan eliminates estate and gift taxes, losing $240 billion over 10 years and boosting the inheritances of the very wealthy. The federal estate tax is paid only by estates worth at least $5.5 million, just 2 out of 1,000 estates, or only 5,500 estates in all of 2017. [Sources: Center on Budget and Policy Priorities (CBPP) and Tax Policy Center]
[Source: Center on Budget & Policy Priorities]
OHIO SERVICES & PROGRAMS AT RISK DUE TO TAX CUTS
To pay for massive tax cuts to the wealthy and corporations, President Trump and GOP leaders have proposed deep cuts to services that working families rely on. The Senate budget resolution would cut over 10 years: