Legislators object to tax cuts that benefit wealthy by raising taxes on middle class

LANSING, Mich. — Today, Senate Minority Leader Jim Ananich (D–Flint) and Sen. Steve Bieda (D–Warren) announced their opposition to Republicans in Congress trying to push through the deeply flawed Trump-Republican tax plan designed to increase taxes on middle-class and lower-income Americans, while providing giant giveaways to billionaires and wealthy corporations.

“Michigan families need a tax plan that works for them, but what Republicans have drafted is nothing short of the biggest tax scam in American history,” Sen. Ananich said. “One-half of the tax breaks would be given to the richest 1 percent of Americans, and while I’m no math teacher, that doesn’t sound like a good deal to the other 99 percent of us.”

The nonpartisan Congressional Budget Office has projected that the Republican tax plan will add $1.4 trillion to the nation debt. After thoroughly reviewing its impact on Michigan’s workers, families and economy, the senators also denounced the proposal because it would:

  • Cut trillions of dollars in funding for Medicare, Medicaid, education and other vital services: The tax plan for the wealthy would be funded in part by a $500 billion cut to Medicare, a $1 trillion cut to Medicaid, and deep cuts to public education and job training. Making cuts to programs where needs will still exist would shift the burden to, and be devastating for, Michigan seniors and working families. Lower-income Americans would also lose access to affordable health care, with premiums expected to rise by double digits beginning in 2019, which would put insurance out of reach for 13 million Americans.
  • Benefit the richest 1 percent and wealthy corporations: A trillion-dollar tax cut would be given to wealthy corporations and business owners — twice as much as what would be given to individual taxpayers. The plan would also cost American jobs by taxing companies less on offshore profits, which would cause corporations to move U.S. jobs overseas.
  • Raise taxes on everyday people: The plan would raise taxes on millions of Americans who can least afford it. Fifty percent of households would see increased taxes, including two in three middle-income families, seniors on fixed incomes and people in the lowest income tax bracket. The tax plan would also eliminate the $4,000 personal exemption that every taxpayer could take for themselves, their spouse and each dependent child, and Americans would no longer be able to deduct most of their state and local taxes on their federal return.

According to a new poll released by Businesses for Responsible Tax Reform, a majority of small business owners also oppose the Trump-Republican tax plan because it would benefit large corporations over small businesses.

“The Republicans’ tax plan is a complete rip-off, adds $1.4 trillion to the national debt, and is nothing but bad news for Michigan’s small businesses,” Sen. Bieda said. “It gives a massive tax cut to large corporations that are already making record profits but paying record low taxes because of loopholes in the law. It’s bad for the country, bad for Michigan, and bad for most everyone because only the ultra-wealthy and CEOs stand to benefit.”

Michigan Senate Democrats are focused on standing up for Michigan families and working people who feel the system is stacked against them. They released plans earlier this year to lower skyrocketing prescription drug costs, protect seniors and people with preexisting conditions from health care cuts coming from Washington, prevent wage theft, and give Michigan-owned businesses and their workers a fairer shot at contracts with state and local governments.

Michigan Senate Democrats also believe if the wealthiest Americans and corporations are made to pay their fair share of taxes, more jobs can be created and investments made in programs such as education, health care and infrastructure that benefit working families.

“We will continue to work toward tax relief for Michigan’s hardworking, middle-class families feeling the squeeze of rising health care, childcare, education and other living expenses,” Sen. Ananich said. “We need to fight for a fair tax plan at the federal level because our kids and our communities simply deserve better.”

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