Despite a lack of transparency regarding the Trump administration’s communication practices, the White House released a Joint Committee on Taxation report detailing the impact of the proposed tax plan. This report reveals that while higher earners will receive significant tax cuts, those making under $30,000 annually will experience tax increases in 2029. The poorest Americans, earning less than $15,000, face a 53% tax hike. While the White House highlights more favorable 2027 projections, omitting other tax changes and the expiration of temporary cuts reveals the plan’s disproportionate benefit to the wealthy.
Read More
The House Rules Committee advanced a Republican budget resolution along party lines, setting the stage for a House vote. This budget proposes deep cuts to Medicaid and SNAP, potentially harming millions of low-income Americans, to fund substantial tax cuts primarily benefiting the wealthy. Independent analyses project millions losing healthcare coverage and food assistance, exacerbating food insecurity and economic hardship. Democrats uniformly oppose the resolution, highlighting its contradictory nature given Republicans’ previous promises to lower costs, and facing significant hurdles to passage due to internal disagreements within the Republican party and opposition in the Senate.
Read More
A Republican plan to extend the 2017 Tax Cuts and Jobs Act (TCJA) before its 2025 expiration faces a steep price tag, potentially exceeding $4.6 trillion over ten years. Funding mechanisms include eliminating popular deductions like the mortgage interest deduction and student loan interest deduction, as well as imposing a 10% import tariff. This plan could disproportionately benefit wealthier Americans while burdening lower-income households through higher consumer costs and reduced social safety net programs. Proposed new tax cuts, such as eliminating taxes on overtime and tips, would further inflate the overall cost.
Read More
John Q. Hosedrinker