Page 3 - Retiree News Winter 2018

New tax law
will make the
rich richer —
at our expense
New federal tax legislation will allow corporate interests and the wealthy to further rig the rules, while taking money
— and essential services — from retirees and working people.
The law, signed by President Donald Trump in late December, provides tax cuts to corporations and the wealthy.
And we will pay for it.
The new tax plan will not only result in higher tax bills for retirees and working people, but will lead to draconian cuts to programs such as Medicare and Medicaid, less access
to affordable health care and further cuts to already-stretched public services.
Here are some features of the new tax law, with numbers partially provided by the AFL-CIO:
• Cuts the corporate tax rate from 35 percent to 21 percent without eliminating tax loopholes that allow corporations
to pay far less than the statutory rate. What does this mean? Big banks, hedge funds and other Wall Street firms are the biggest winners. The richest 1 percent
of households will receive 83 percent
of tax cuts, and the richest 0.1 percent would get an average tax cut of more than $148,000. All cuts to corporate tax rates are permanent.
• While elected officials tout this program as a “tax cut for working people,” this plan will eventually take money out of our wallets. Tax cuts to most individual taxpayers will expire in 2025. About
70 million households making less than
$100,000 eventually would pay more.
• Caps state and local property, income and sales tax deductions combined at
$10,000, and fewer taxpayers will itemize deductions. This will cause millions of taxpayers to pay higher taxes. In New York, this is a particularly strong concern, as many taxpayers here will likely see a tax increase.
• Limits on deductions will also increase pressure on state and local governments to cut programs and services, including essential public services, to lower taxes. The tax constraints will likely lead to more challenges in spending for public services, including health care, education, social services and more. Undermining these services would harm millions of people in New York.
• Doubles the amount that is exempt from the estate tax.
• Repeals the Affordable Care Act’s “individual mandate” that all Americans have health care or pay a penalty. Because of this repeal, health care premiums in the individual market would rise by 10 percent, 13 million people would lose health insurance, and as many as 15,000 or more people face potential risks to their lives for being unable to access affordable health care.
• Adds $1.5 trillion to the federal deficit over 10 years. To help pay for the costs of this plan, House Speaker Paul Ryan has stated that next year he will pursue legislation to cut funding for programs such as Medicaid, Medicare and other programs that fund the jobs of CSEA members throughout New York state.
This tax legislation will harm retirees and working people for generations to come. “Corporate CEOs and the wealthy will
become even richer through this tax giveaway, while working people will find it even harder
to sustain their families,” CSEA President
Danny Donohue said. “Even more so, this tax plan jeopardizes many of our essential public services that so many New Yorkers rely upon every day. The money that the wealthy will receive through tax breaks would be much better used for infrastructure, schools, health care and many more services that would help all people.”
WINTER 2018
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