AUGUSTA, MAINE (November 13, 2017) – Today, a new 50-state analysis of the U.S. Senate Republican tax legislation reveals the same flawed priorities set out in the U.S. House plan. The plan is still heavily tilted toward the wealthiest, and foreign investors are estimated to receive about the same amount in tax breaks ($31 million/year) as the bottom 60 percent of American families ($33 million/ year). In Maine, the wealthiest 5% of families would receive nearly 40% of all tax breaks, while 1 in 9 Maine families will see their taxes go up.
Like the House legislation, the Senate tax plan will cost at least $1.5 trillion over ten years.
“Millionaires, billionaires, profitable corporations, and foreign investors shouldn’t be put before the wellbeing of low and middle-income families. What the Senate and House Republican tax plans propose will increase the deficit and lead to cuts to programs and services that help Maine families get health coverage, put food on the table, and get the education they need to get good-paying jobs,” said Sarah Austin, policy analyst at the Maine Center for Economic Policy.
Under the Senate tax plan, the wealthiest 1% in Maine are slated to get a tax break of $20,990 in 2019, which will grow to $26,850 in 2027. Middle income-earners will only see their taxes reduced by $580 in the 2019 and $850 in 2027. The poorest 20% will see an average tax break of just $100 in 2019 and $200 in 2027.
The real costs of the Republican tax plan will be born by low- and middle-income families. Congressional Republicans have already made clear they plan to pay for their tax legislation next year with deep cuts to programs that hundreds of thousands of Mainers rely on; such as Medicare, Medicaid, SNAP, and college aid.
“The Senate Republican legislation makes only slight changes at the margins to the House Republican tax legislation in an effort to mask their priorities. The real beneficiaries of these unpaid for tax cuts are the richest households, profitable corporations, and foreign investors, with working families and seniors losing out.” added Austin.
View the FULL REPORT.