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Washington, D.C. – Bread for the World today expressed concern that the tax bill proposed by the Senate would raise taxes on low-income and middle-class families.
“This bill isn’t a tax cut – it’s a tax hike on working- and middle-class Americans,” said Rev. David Beckmann, president of Bread for the World. “We should not be raising taxes on low-income and middle-class families to pay for tax cuts for companies and for high-income people.”
The Senate bill will significantly raise taxes on the lowest earners, those making between $10,000 and $30,000, starting in 2021, according to an analysis released by the Joint Committee on Taxation, which provides Congress with nonpartisan analysis on tax legislation. In 2027, everyone earning less than $75,000 would see a significant net increase in taxes.
“If this bill passes tens of millions of Americans would see their taxes go up,” Beckmann said.
The tax bill does nothing to help working Americans and their families. It fails to expand the Child Tax Credit (CTC) and the Earned Income Tax Credit, and would end the CTC for some immigrant families.
Bread is also concerned that the bill would repeal the individual mandate in the Affordable Care Act. Repealing the mandate would increase the number of people without health insurance by 13 million, including 5 million on Medicaid, according to the Congressional Budget Office.
The budget resolution that permits $1.5 trillion in deficit spending for this tax bill also outlines more than $2 trillion in cuts to Medicaid, SNAP, and other vital safety-net programs.
“Cutting taxes for high-income people by running up the deficit will almost certainly lead to deep cuts in programs that are important to hungry and poor people,” Beckmann said.
“Thanksgiving is a time of sharing,” Beckmann noted. “One way to get ready for Thanksgiving is to urge senators to vote against this bill.”
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