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Washington, D.C. – Bread for the World today expressed disappointment over passage of the Tax Cuts and Jobs Act of 2017.
“This tax bill is part of a 1-2 punch,” said Rev. David Beckmann, president of Bread for the World. “President Trump and congressional leaders have already announced plans to follow this tax cut, mainly for high-income people, with a big push to cut more than $2 trillion from social programs for low-and middle-income people.”
The bill is projected to add at least $1.5 trillion to the deficit. Congressional leaders will likely cite federal deficits as a reason for deep cuts to Medicaid, SNAP, and other crucial programs that keep people out of hunger and poverty.
The bill also raises taxes on the lowest earners, those making between $10,000 and $30,000, starting in 2021. Tax cuts for all individuals and families expire at the end of 2027, and millions earning less than $75,000 would then see a significant net increase in taxes. The corporate tax cuts in the bill are permanent.
“Tax cuts for corporations and high-income people are not the best way to expand job opportunities for low- and middle-income people,” Beckmann said.
In addition, the bill repeals the individual mandate in the Affordable Care Act. Without the mandate, 5 million of the most vulnerable Americans could lose their Medicaid coverage, according to the Congressional Budget Office.
“Christmas is supposed to be a time when we celebrate the birth of our Savior by giving to those who are less fortunate,” Beckmann noted. “But Congress just gave away a lot of money in a way that only harms and threatens needy people.”
Expanding the CTC would do more to reduce hunger and poverty among our nation’s children than any single policy has in decades.
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