Those of us who support asset development for low-wealth individuals and communities know that tax reform is needed. Each year, tax incentives support wealth development through homeownership, higher education, and retirement savings – but often, the bulk of these incentives go to those who need them least. This drives wealth inequality. For shared, broader prosperity, we need to turn the tax code right-side up.
What’s terrifying, then, is that the proposed tax plan takes an upside-down tax system and makes it worse. Analyses (here, here, and here) of the Senate Plan suggest that it would raise taxes on the lowest earning Americans while the top earners will receive a tax cut. Among those getting money back, the wealthiest take home an outsized share. Meanwhile, 13 million will lose insurance coverage and many more will face rising premiums through repeal of the Affordable Care Act’s individual mandate.
But these increases for the working class and cuts favoring the wealthiest among us are just the first step. Next, President Trump and Congress will look to the coffers of programs that support low- and moderate-income families to pay for these cuts. Will our already-substantial CCDF waitlist of 14,663 children grow? Will the 642,000 Hoosiers who currently rely on the Supplemental Nutrition Assistance Program see their average benefit of $117.90 per person per month decrease? Will we see cuts to Pell Grants, housing assistance, Medicare and Medicaid?
It’s not too late to make your voice heard. Call Senator Young and Senator Donnelly to let them know your thoughts on the tax plan. Capitol Switchboard: (202) 224-3121.