Congress is in the unique position to make the first major tax reform since Ronald Reagan. But many of the proposals House representatives and Trump put on the table actually harm Americans and their families. Now the Senate Finance Committee is working on a comprehensive tax reform plan. While the White House is pushing for quick turnaround of a detailed plan and passage this year, Senate Finance Chair Orrin Hatch suggested recently that the process should be slower, more deliberate and bipartisan.
One reason Senator Hatch favored a delay might be the proposed elimination of the state and local tax deduction (SALT) currently included in the tax reform plan. Many Republicans believe the elimination of SALT will help raise revenue that can be poured into causes like lowering the top tax rate, eliminating the state tax, and exempting multinational corporations’ foreign earnings from all taxation. Lawmakers backing the current tax reform plans falsely believe this is a tax that hits blue states more than red ones, but according to the Tax Policy Center, this elimination has significant consequences for states like Utah.
Other reasons may be the $2.4 trillion the Senate plan would add to the deficit over the next decade, the drastic cuts to essential programs the House plan would require, or analysis showing that only the top 1% of Americans would benefit from the plan and that the middle class would see their tax rates increase over time.
It is important to slow the process down to allow responsible tax reform that works for all of us.
CALL TO ACTION
- Thank Senator Orrin Hatch for prioritizing good policy decisions above a partisan push for a quick win and for valuing bipartisanship in crafting the best policies for the American people and for Utahns.
- Ask our Senators to follow these criteria when considering budget cuts and tax reform:
- Health care, nutrition, education and services that protect the most vulnerable must not be put at risk of cuts.
- Congress must raise the revenue needed to fund investments that create millions of new jobs rebuilding roads and bridges, educating our children, expanding health care, researching new medical cures, and ensuring a secure retirement for seniors.
- Strengthen working family tax credits so our families can better contribute to our national economy. This includes expanding and strengthening the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Tax Credit (CDCTC).
- Eliminate tax breaks that encourage multinational corporations to shift jobs and profits offshore. Corporations should pay the $750 billion they owe on their $2.6 trillion in offshore profits.
- Congress must not use a fast-track, partisan process, known as reconciliation, to pass tax cuts that benefit only a tiny fraction of the American people. A tax plan should raise much more revenue, but at a minimum, it must be “revenue neutral.”
Sen. Orrin Hatch (202) 224-5251 (DC) // (801) 524-4380 (SLC) // (801) 375-7881 (Provo) // (435) 634-1795 (St. George) // (801) 625-5672 (Ogden) // (435) 586-8435 (Cedar City) // Email // Twitter: @senorrinhatch // Facebook: @senatororrinhatch
Sen. Mike Lee 202-224-5444 (DC) // 801-524-5933 (SLC) // 435-628-5514 (St. George) // 801-392-9633 (Ogden) // Email // Twitter: @SenMikeLee // Facebook: @senatormikelee