GOP Tax Plan Largely Benefits Those Who Need Help the Least

Leaders of the House of Representatives on Nov. 2 unveiled their tax plan that would mostly benefit those who need help the least: wealthy individuals and large corporations.

Specifically, the House plan would:

  • Eliminate several deductions and tax credits that have helped working-class families, including being able to deduct student loans and medical expenses and getting a tax credit for adopting a child.
  • Repeal the deductions for state and local income and sales taxes.
  • Cap the property tax deduction.
  • Slash in half the mortgage interest deduction for new homebuyers – which would especially hurt homeowners in high-cost cities such as Washington and New York.
  • Double the estate tax exemption allowing the rich to avoid paying taxes on large inheritance. The estate tax will be eventually repealed in six years, saving them $170 billion.
  • Cut the corporate tax rate from 35% to 20% -- a $1.5 trillion tax cut.
  • Cut taxes owed by corporations on their $2.6 trillion in profits stashed offshore from 35% to 12%, saving corporations $530 billion.

It’s important to note that these corporate tax cuts would be paid for by deep cuts elsewhere – public education, health care, research, environmental protection, Social Security, housing, job training, social services, etc. In the Republican budget, two hugely popular programs, Medicare and Medicaid, would also be cut to fund these tax cuts.

Too many American workers have been suffering from stagnant wages, rising costs for health care and other essentials, and an economic system that favors the millionaires and billionaires. This plan does nothing to help them.

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