Esty: Partisan Tax Bill “Still a Middle-Class Rip-Off”
December 16, 2017
Washington, D.C. – Following reports of an agreement between House and Senate Republicans on a deal to advance a massive tax bill early next week, Congresswoman Elizabeth Esty (CT-5) released the following statement:
“The ‘changes’ made to the tax bill haven’t changed my view of it one bit: it’s still a rip-off of Connecticut’s middle-class families,” Esty said. “This bill still raises taxes on millions of working people to pay for benefits that will accrue solely to multinational corporations, the wealthiest people in America, and the heirs to their large estates. This bill still blows a trillion-dollar-plus hole in the federal budget at a time when nonpartisan experts are warning us of the long-term consequences of our growing national debt. And this bill still considerably limits Connecticut families’ ability to deduct their state and local taxes.
“This scheme would lead to an enormous transfer of wealth from our state to states like Texas and Florida – states that haven’t made the same investments in their success that we have. In fact, Connecticut will be punished worse than almost any other state in the nation under this proposal. Most of the middle-class families I represent will see little, if any, benefit, while the wealthiest Americans and multinational corporations will see huge windfalls.
“I want tax reform. Middle-class families need tax reform. Small businesses need tax reform. This bill isn’t tax reform at all. If and when it fails, Republicans and Democrats should do what we should’ve been doing all along – working together to craft a bill that will help families and give businesses the ability to create jobs here in America.”
According to a summary of the tax bill released from the conference committee convened to reconcile differences between the House and Senate versions of the legislation, the tentative agreement:
- Eliminates the individual mandate under the Affordable Care Act.
- Lowers the corporate tax rate from 35% to 21%.
- Lowers the income tax rate for the wealthiest to 37%.
- Reduces the top effective marginal tax rate for S corporations to a top rate of 29.6%.
- Eliminates the corporate Alternative Minimum Tax (AMT); increases the exemption amount from the AMT for ultra-wealthy individuals.
- Caps the deductibility of state and local taxes at $10,000. Filers will be forced to choose from among sales, income, and property taxes for the deduction.
- Limits the home mortgage interest deduction.