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Analysis: GOP Tax Bill Would Hurt Most Michiganders

The GOP tax plan could get a vote in the Senate next week. (click/morguefile)
The GOP tax plan could get a vote in the Senate next week. (click/morguefile)
November 24, 2017

LANSING, Mich. – As many people across the state begin their holiday shopping this weekend, analysts are warning that the Republican tax bill is no gift to Michiganders, particularly those most in need.

According to the Michigan League for Public Policy, under both the plan that passed the U.S. House last week and the bill set to be discussed in the Senate next week, the wealthiest 1 percent of Michiganders will benefit the most.

Furthermore, Rachel Richards, the League’s legislative coordinator, says the Senate plan, which includes a repeal of the individual health care mandate, would result in nearly 400,000 people statewide losing their health care.

"We anticipate premiums on the marketplace to rise by about $1,520 for a family of four, and we would likely see cuts to Medicare nearing $1 billion in order to pay for these changes," she states.

Analysts expect either plan would raise the deficit by as much as $1.5 trillion over the next 10 years.

Republicans say the massive corporate tax cuts will spur economic growth and stimulate the job market, but many leading economists argue that has not happened with previous cuts.

Richards says a deficit that large would leave lawmakers no choice but to "right size" the budget, which she says would result in drastic cuts that will be felt by all.

"Education services, food assistance, basic cash assistance, infrastructure funding, health care,” she points out. “It's going to impact the quality of life on pretty much every Michigan resident. "

Both U.S. Sens. Gary Peters and Debbie Stabenow of Michigan have come out against the Senate bill.

President Donald Trump continues to push Congress to pass a tax cut bill before the end of the year.

Mona Shand, Public News Service - MI