Anaylsis: House Tax Plan Tilts to Favor Wealthiest Kentuckians
Monday, November 13, 2017
FRANKFORT, Ky. – House Republican Party leaders call their tax plan a win for the American people, but some analysts argue the Tax Cuts and Jobs Act would leave Kentuckians worse off.
The bill, which could come up for a vote this week, slashes corporate tax rates and modestly reduces household income tax rates.
Anna Baumann, a research and policy associate with the Kentucky Center for Economic Policy, explains tax cuts for Kentucky's wealthiest 1 percent would average $28,000 in 2018 and grow to more than $41,000 in the next decade.
And while tax cuts increase for the rich, they become smaller for everyone else.
"So, the bottom 60 percent of Kentuckians, people who are making less than $55,000, would have their $320 tax cut in 2018 shrink to $190 by 2027," she points out.
The plan is expected to cost about $1.5 trillion over 10 years.
Republicans say the reforms will spur economic growth, create higher wages and stimulate business activity, thus generating higher tax revenues that can bring down the deficit.
Baumann doesn't agree, and counters that the tax cuts will put more pressure on federal and state spending.
"They'll end up costing us a lot of money, eventually forcing cuts to investments in our economic security and opportunity – things like SNAP, Medicaid, Medicare, education, community development,” she maintains. “Things that our communities rely on."
The House tax cut plan would cost an average of $150 billion per year over the next decade, which Baumann argues is money that could be used on other investments.
"It could double the Pell Grant program, could double cancer research,” she points out. “Fund the full backlog of maintenance that's needed at our national parks. Provide child care assistance to 6 million children, opioid addiction treatment for 300,000 people, and training for 3.5 million workers for in-demand jobs per year."
On Thursday, Senate Republicans released their version of the Tax Cuts and Jobs Act. Baumann says despite changes to the bill, it still contains many of the same basic flaws as the House plan.
get more stories like this via email
California tribes are headed to the White House Tribal Nations Summit tomorrow, where they will ask Congress and the Biden administration to create …
A new report shows Maine is exceeding the home-heating goals set forth in its ambitious four-year climate plan to reduce greenhouse-gas emissions…
By India Gardener / Broadcast version by Nadia Ramlagan reporting for the Kent State-Ohio News Connection Collaboration. According to Attorney …
It's estimated that one in three Kentuckians struggles to pay medical bills, and the issue continues to be a driving factor in personal bankruptcy …
Senate lawmakers are soon expected to vote on the Modernizing Opioid Treatment Access Act, legislation introduced this year by Republican Sen…
Health and Wellness
A new program in Utah wants to help first responders learn to recognize and work through their traumatic life events through horsemanship. This …
Health and Wellness
A coalition of Nevada groups is behind a statewide effort to make Nevada an Employment First state. That would align the state with a U.S. Labor …
Government accountability groups want increased transparency in New York criminal court decisions. This comes after a new report finds only 6% of …