Commentary: Congresswoman Michelle Lujan Grisham released the following statement today in response to the massive tax package released by Republicans in Congress.
“Rather than create economic opportunity for American families, the Republican tax package resembles the failed policies of the past that only reward the wealthiest people and special interests, while adding as much as $1.5 trillion to our national debt. Many Americans would see no substantial tax relief and their children and grandchildren will shoulder the burden of paying off the debt for years to come. Moreover, the Republican plan will further raise health care costs by eliminating the medical expense deduction.
“If Republicans want real tax reform, they should work with Democrats to focus on tax changes that grow the economy, create jobs and focus tax relief on middle-class families, especially in states like New Mexico that have not recovered from the recession and financial crisis. We should be doing more to create a clean energy economy and build a green energy workforce; support small and medium-sized businesses that drive job creation; and make college and child care more affordable.
“The economic growth that our country has seen since the recession has not been shared equally and all this tax plan will do is widen that gap. Let’s work together on bi-partisan tax reform that will expand economic opportunity and benefit all Americans—not just the wealthy few.”
The Republican tax plan would have the following impacts:
· President Trump promised tax reform would benefit the Middle Class, not the Wealthy. Unfortunately, his rhetoric does not match with reality.
· The plan would create a new “pass-through” loophole that wealthy individuals will exploit to lower their own taxes.
· The Alternative Minimum Tax (AMT), which ensures that the wealthy pay their fair share, is eliminated in the Ryan/McConnell plan.
o While little is known about President Trump’s taxes, we do know that without the AMT the President would have paid $31 million less in taxes in 2005 alone.
· Speaker Ryan also believes that we should give a windfall to the ultra-wealthy by eliminating the Estate Tax starting in 2024.
o Today less than 5,500 families across the nation are impacted by the estate tax.
o And in 2016, not one person paid the estate tax in seven states.
Impacts to the Middle Class families:
· Speaker Ryan and the Republican establishment attack commonsense policies used by millions of middle-class families to pay for their tax giveaway to the wealthy.
o Republicans take away your ability to write off your state and local tax bills, forcing millions of families to pay taxes twice on the same dollar earned except for property taxes up to $10,000.
o Americans hit with significant medical costs – for example, those stricken with cancer, ALS, and Alzheimer’s -- would lose their ability to write off these costs under the Republican Plan.
o The bill also eliminates deduction for personal casualty losses, a big blow for victims of crime, theft and disasters. The bill also eliminates the exclusion for dependent care assistance programs, an important benefit for working families