Communications Workers Of America Local 9423

The Trump/Ryan Tax Scam

Massive Tax Cuts for the 1%

  • The richest 1% will get 47% of the total tax cuts after 10 years.

  • 57% of those earning more than $1 million a year will see their taxes reduced dramatically.

  • 75% of the tax cuts go to corporations and businesses.

  • The inheritance tax, which only applies to estates of more than $5.5 million per person, just 2 out of 1,000 estates, or only 5,500 estates in all of 2017, would be repealed, benefitting the idle rich.

  • The alternative minimum tax (AMT) would be repealed. The AMT was created to ensure that wealthy taxpayers don’t game the tax codes using excessive deductions and other loopholes to sharply reduce or eliminate their tax bill, ensuring that they must be a minimum tax. For example: In 2005, the one year for which Trump’s tax returns have been made public, he made $153 million and, thanks to the AMT, paid $38 million in federal income taxes for a tax rate of 25%. Without the AMT, he would have paid $31 million less in federal income taxes, and paid a tax rate of less than 4%. That rate is less than the lowest-income Americans often pay.

 

Creates a Tax Incentive for Corporations to Ship Jobs Overseas

  • Profits earned by corporations overseas will receive a lower tax rate than profits earned in the United States.

  • Profit generated by a call center in the U.S. would be taxed at 20%.  Profit generated at a call in the Philippines, India or anywhere else in the world would be taxed anywhere from 0 - 10%.

  • With the exploitation of foreign workers through low wages, this perverse tax incentive would mean more US jobs would be shipped overseas.

 

Is a Major Giveaway to the Big Banks and Wall Street

  • The corporation that stands to gain the most, according to an analysis by the Wall Street Journal is Wells Fargo.

  • The six largest banks in the US would get a combined $6.4 billion annually.

  • Would allow the six largest US banks to dodge more than 65% of their profits stashed away in overseas tax havens.

  • Would create a whole new tax loophole for hedge fund owners and other Wall Street players called “pass through entities” that would lower their tax rate from 39.6% to just 25%.

  • Allows hedge fund managers and others to continue using the “carried interest loophole”, which Trump campaigned on closing.  This loophole allows for Wall Street money managers to be taxed at lower rate than CWA members.  Blackstone (a major Wall Street hedge fund) CEO Stephen Schwarzmann is estimated to have saved $100 million a year from this loophole.

     

Repealing Middle Class Tax Breaks CWA Members and Working Families Rely On

  • The ability for federal taxpayers to deduct their state and local income and sales taxes (SALT) will be eliminated. The ability to deduct property taxes will be limited.  Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. Over a third of taxpayers making between $50 - 75,000 use the SALT deduction and over half of those making between $70 - 100,000. Repealing the state and local tax deduction will largely affect people in states such as, New York, New Jersey, California, Illinois, Connecticut and Maryland.

  • Eliminates the ability to deduct interest on student loans.

  • Will tax directly the value of employer provided education assistance (tuition assistance) that is used by tens of thousands of CWA members.

  • If an employer provides child care, or assistance for child care costs, that will now be a taxable benefit.

  • Medical expenses like nursing home care will no longer be deductible.

     

Taxes Will Increase for Working Families

  • According to the non-partisan Joint Committee on Taxation, an significant portion of the middle class will see their taxes rise over 10 years.

  • 30% of families making between $55,000 - $93,000 will see an average increase of $1,150 income tax increase

  • For those making $40,000 - $50,000 per year, 22.5% would see their taxes increase by more than $100.

  • For those making $50,000 - $75,0000 per year, 23.7% would see their taxes increase.

  • For those making $75,000 - $100,000 per year, 26% will see their taxes increase.

 

Massive Federal Deficits Will Jeopardize Social Security, Medicare and Medicaid

  • The tax cuts will increase the federal budget deficit by at least $1.5 trillion.

The Republican budget plan cuts $1.5 trillion from Medicare and Medicaid.

What you can do to help is call your REP today @ 1-888-907-9365 and ask them to VOTE NO on HR1 to oppose the TAX SCAM!

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