The Republican tax bill gives massive tax breaks to big corporations to outsource jobs and ends working family friendly deductions. Under the House GOP bill, a business that creates jobs in the United States would pay a 20% tax on profits, but a big corporation that outsources those same jobs wouldn’t pay a penny in U.S. taxes on any profits it earns from outsourcing.
Working families would end up paying more taxes as the GOP seeks to end deductions for housing, state and local taxes, union dues, medical expenses and educational costs.
We all know countless teachers who spend money out of their own pockets every year to buy supplies for their classrooms—crayons, tissues, dry-erase markers and even snacks and clothing for students who come to school hungry or without a winter coat. Currently, federal tax code has allowed educators to deduct unreimbursed classroom spending up to $250. But the Rep. Paul Ryan’s House GOP tax plan would eliminate this vital deduction that helps teachers and students.
Also, there’s the elimination of the generations-old state and local tax deduction. This will hurt every community that uses tax dollars to invest in essential services like neighborhood schools, firefighters, police and sanitation. The GOP proposal also takes away working families’ ability to deduct union dues. These are deductions that middle-class families depend on.
We cannot let Trump and the GOP leadership reward their wealthy friends and corporations with tax cuts at the expense of educators, first responders and union members—it’s bad for our schools, bad for our communities and bad for a majority of Americans.
Here are five big ways the GOP tax bill gives breaks to the rich and breaks working families:
- The tax bill from House Republicans would give corporations a huge tax break for outsourcing by eliminating U.S. taxes on profits from outsourcing.
- The tax bill breaks working families in some states by dramatically raising taxes on working families by ending federal tax deductions for state and local taxes.
- The wealthiest of the wealthy get a special tax break in the Republican tax bill—a massively expensive tax cut for families with more than $11 million in assets, who will be able to pass on their riches to their children completely tax-free, forcing regular working people to pay more for essential public services.
- The tax bill would break 12 million working Americans who pay student loans by ending the deduction for student loan interest.
- The tax bill breaks working families, especially seniors and people with disabilities and high medical costs, by ending deductions for out-of-pocket medical expenses.
The Wisconsin AFL-CIO demands a tax code that works for working families while providing the resources necessary for America’s workers and businesses to compete and succeed on the world stage. President Donald Trump and House Republicans should drop this bad tax bill and focus on policies that create American jobs, improve communities and make life better for working families.