Commentary: Washington—As part of its $5 trillion tax plan giveaway to the wealthiest and corporations, the U.S. House Republican leadership bill eliminates most of the state and local tax deduction (SALT). Its elimination could blow a hole in state and local revenue to support public education and put nearly 250,000 education jobs at risk according to a detailed analysis of the impact of House Tax Bill (HR 1) on funding for public education conducted by the National Education Association. For a state-by-state breakdown of the impact of eliminating SALT, please click on this table.
“The Republican leadership’s tax plan is another example of misguided priorities in Washington,” said NEA President Lily Eskelsen García. “The plan is a tax giveaway to the wealthiest and corporations paid for on the backs of working people and students. It would jeopardize the ability of state and local governments to fund public education. That will translate into cuts to public schools, lost jobs to educators, overcrowded classrooms that deprive students of one-on-one attention, and threaten public education.”
The NEA analysis also showed that the bill would lead to cuts of approximately $250 billion in support for public education over the next ten years. Corporations, by the way, get to keep their state and local tax deductions. A cut of this magnitude is akin to eliminating the Title I and IDEA special education programs overnight. If enacted, the elimination of state and local tax deduction could have a negative, ripple effect on states’ and local communities’ ability to fund public services such as public education.
The impact of eliminating SALT on public education is nearly equal to the education jobs lost during the Great Recession. By most accounts, the country lost about 300,000 education jobs during that time. To cope with the economic crisis our country faced, schools made draconian cuts to public education funding that had a negative impact on students. In addition to losing teachers, school aides, and other key education support professionals, some school districts reduced the number of school days from five to four; critical education programs (before and after school programs, kindergarten) also took a hit. Class sizes ballooned.
The Republican leadership bill comes as the nation also faces a teacher shortage. At the start of the 2017-18 school year, every state in the country was facing a teacher shortage. In addition, according to the Washington Post, school districts also are struggling to fill positions in math, reading and English language arts, as well as finding substitute teachers.
“It has taken years to recover from the Great Recession, and we’re not out of the woods yet, what with our country facing a national teacher shortage,” continued Eskelsen. “We must ensure that our students have caring, qualified, and committed educators in order to succeed. Now here come the tax cuts for the rich paid for by students and middle-class families. This bill is terrible for the American people because it is a giveaway for the wealthy and corporations funded on the backs of students and the middle class – and Congress should soundly reject it.”