U.S. Senate Tax Plan is a Giveaway to Wealthy Families and Corporations

///U.S. Senate Tax Plan is a Giveaway to Wealthy Families and Corporations

Like the House’s tax proposal, the U.S. Senate plan released this week would give hundreds of billions of dollars in tax cuts to wealthy households and major corporations at the expense of low-and middle-income families.

The Senate proposal would add at least $1.5 trillion in debt – and to pay for it, Congress will almost certainly try to cut everything from nutrition assistance for struggling families to education and health care.

The Senate tax bill would allow families with annual incomes of $1 million – instead of the current income limit of $110,000 – to claim the Child Tax Credit. The Texas Congressional delegation should work to ensure that any Child Tax Credit increase specifically benefits children in low-income working families.

The Senate plan would also eliminate the current deduction for state property and sales taxes. Instead of tax cuts that help those who need it the least, the Texas Congressional delegation should work to maintain the deduction for local property taxes, which support investments in education, infrastructure and other public services that benefit all Texans.

We are expecting the full House to vote on their version of the bill this week – likely on Thursday. Meanwhile, the Senate Finance Committee will start their markup of the Senate version of the bill this week, so they can keep driving toward their goal of taking a full Senate vote after Thanksgiving.

Dick Lavine focuses on state and local revenue issues. Before coming to the Center in 1994, he was a Senior Researcher at the House Research Organization of the Texas House of Representatives for ten years. He is a Chartered Financial Analyst, Chairman of the Board of Directors of the Travis Central Appraisal District, and a member of the Executive Board of AFSCME Texas Retirees, the statewide union local of retired public employees. The Equity Center named him the 2011 Champion for Equity for his work to reform our tax system to ensure it can adequately support public education and other public services. He earned a Bachelor of Arts in Economics, magna cum laude, from Harvard College in 1969, and a Doctor of Jurisprudence, cum laude, from the University of Pennsylvania in 1975.

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