New Estimates Confirm GOP Tax Plan is Bad Deal for Minnesotans
Minnesotans could face huge tax hikes due to the Republican tax bill, according to a recent report by the Minnesota Department of Revenue
[ST. PAUL, MN] – New state and federal estimates evaluating the effects of the Republican tax plan confirm the bill is bad for working Americans. Republican Representatives Tom Emmer, Jason Lewis, and Erik Paulsen voted for the GOP Tax plan, which steals from Minnesota’s middle-class families to enrich corporations and the top 1%; it will hurt our community; and could lead to devastating cuts to Medicare, Medicaid and other vital programs. Simply put, the Trump Tax makes life harder for Minnesotans.
“There’s no question about it: The GOP Tax Plan is a bad deal for working Minnesotans,” said DFL Chairman Ken Martin. “As more and more estimates come out about this misguided plan, it is increasingly clear just how devastating it will be for taxpayers in our state.”
“This is a painful reminder that elections have enormous consequences,” Martin continued. “Representatives Jason Lewis, Erik Paulsen, and Tom Emmer voted for this destructive measure—pulling the rug out from under Minnesota families. We have an opportunity to hold them accountable—and that opportunity is the ballot box next November. We must come together, get to work, and elect people to office who will put Minnesotans first.”
1. How the Trump Tax hurts Minnesotans:
The average Minnesotan making $21,000 or less will pay more thanks to the Trump Tax within a decade – but the richest 1% of Minnesotan will see a tax cut of roughly $6,000
Instead of reauthorizing CHIP, which provides health care for 125,000 kids in Minnesota, the GOP prioritized cutting the estate tax for the richest 80 families in Minnesota.
Star Tribune: Minnesotans could face significant state tax hike next year in wake of federal changes
2. The Trump Tax won’t create jobs or raise wages.
New York Times: “For most large companies, experts believe that the proceeds of the big tax cut will largely go toward paying for companies to repurchase their own shares, a tactic that tends to boost stock prices. […] Economists and analysts expect much less of the tax winnings to go to permanent pay increases for employees, who, as a whole, have endured stagnant wages over the past decade.”
Washington Post: “Trump promised ‘America First’ would keep jobs here. But the tax plan might push them overseas.”
3. The Trump Tax gives massive tax breaks to corporations and the wealthiest, while raising taxes on millions of middle-class families.
Washington Post’s Wonkblog: “Republicans are paying for a permanent cut for corporations with an under-the-radar tax increase on individuals.”
CBS News: “Most Americans would receive tax cuts initially. But the lower rates and a host of other benefits would expire after 2025. This effectively sets up an $83 billion tax hike for many millions of Americans in 2027.”
4. The Trump Tax undermines funding for schools, firefighters, police officers, and other services that benefit you.
Washington Post: “The Republican tax bill will make it harder for states and cities to pay their bills.”
Washington Post: “The proposal curtails the ability of taxpayers to deduct state and local taxes from their federal tax bill, limiting the deduction to $10,000. By increasing the federal tax burden on individuals, advocates worry that states, counties and school boards will have a tougher time raising money for schools, which get most of their resources from state and local tax revenues.”
5. The Trump Tax could lead to deep and devastating cuts to the Medicare, Medicaid, and other services seniors, veterans and working families rely on.
AARP: “The large increase in the deficit will inevitably lead to calls for greater spending cuts, which are likely to include dramatic cuts to Medicare, Medicaid, and other important programs serving older Americans.”
Vox: “House Speaker Paul Ryan and other top Republican leaders, fresh off a tax bill that is estimated to add at least $1 trillion to the national debt, are already sounding the alarm about an out-of-control deficit problem. Their targets for closing the gap include Social Security, Medicare, and food stamps.”
Filed under: DFL News