Instead of Helping Middle Class, Tax Plan Would Hurt Working Families
(Press Release) Late last week, the U.S. Senate passed a short-sighted tax scheme, which was similar to the version the U.S. House passed last month. The two versions of the tax bill now head to a conference committee process to reconcile differences.
Both the Senate and House versions of the tax bill are costly new giveaways to the very wealthy and major corporations at the expense of millions of low-income and middle-class Texans who actually would face a tax increase. CPPP calls on members of the Texas delegation to stand with their constituents and reject the final tax bill.
Both Senate and House versions of the tax bill would explode deficits, strain the Texas budget, and almost certainly force cuts to everything from food assistance for families to education, Medicare, Medicaid and infrastructure. The Senate plan would increase the number of uninsured people by 13 million – perhaps 1 in 10 more Texans could become uninsured – to pay for even larger corporate tax cuts.
Under the House version of the tax bill, the property tax deduction would be capped at $10,000. The Senate version of the bill completely eliminates the property tax deduction in 2025. If Texans can’t deduct their property taxes from their federal income tax bill, then they will be essentially paying more money in taxes without any corresponding increase in services. Through the deduction, the federal government has been absorbing a portion of the cost to property taxpayers of funding local services. Eliminating the sales tax deduction would cause even more cuts to schools, roads, and other programs and services that help Texans get by.
Small changes won’t fix the bill’s fundamental flaws. And the merged tax bill that comes out of a conference committee will be more of the same – offering nothing to most working families and ultimately hurting many. Instead of tax cuts that help those who need it the least, Senator Cornyn, Senator Cruz and our members of Congress should work to advance tax policies that invest in working families while ensuring that any tax bill is paid for by closing tax loopholes.
