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- Final Tax Plan Makes Shortchanging Indiana’s Middle-Class & Working Families Permanent
Tuesday, December 19, 2017
Final Tax Plan Makes Shortchanging Indiana’s Middle-Class & Working Families Permanent
Last Chance for Indiana’s Congressional Delegation to Make a Stand for Average Hoosiers
The final tax plan released late on Friday and set to be voted on today gives middle-class and working Hoosier families no reason to celebrate. The bill up for final approval by the House and Senate still has the same fundamental flaws: upside-down benefits to the wealthiest, corporations, and foreign investors, meanwhile creating an unsustainable deficit to be balancedon the backs of vulnerable working families. Let Senator Young, Senator Donnelly, and your U.S. Representative know that you will hold them accountable for their vote.
• In the first year, the wealthiest 1% of Indiana earners will receive $48,840 in tax cuts, more than many Hoosier households earn in a year. Meanwhile, the bottom 60% of Indiana’s families will get cuts that average out to $9 a week, about enough for a small plain cake from Wal-Mart.
• By 2027, most of the tax credits for middle-class & working families go away and the average Hoosier earner inthe bottom 60% will see a permanent tax hike of $140 every year. But the wealthiest earners will continue to pocket nearly $5,000 every year. Over 1 million Hoosiers will see that permanent tax hike under the final bill, 713,380 of whom are in the bottom 60% of Indiana earners.
• The winners and losers chosen by the bill heavily favor the foreign investors and corporations in addition to the wealthiest earners, incentivizing further offshoring of U.S. jobs.
• Despite modest improvements to the Child Tax Credit in the final bill, 230,000 Hoosier children will receive only a token increase of $75 or less, and will be left out of the full $1,000-per-child that higher income families will receive.
• The final bill still threatens access to health care for 245,000 Hoosiers by eliminating the ACA individual mandate, cutting $519 million in Medicare funding for Indiana in 2018 and causing an estimated $1,360 increase in marketplace premiums by 2019.
• Perhaps the worst permanent change from this tax bill would be the nearly $1.5 trillion added to federal budget deficits, a shortfall that has some in Congress already looking to slash proven poverty-fighting programs like SNAP, Medicaid, and job training.