According to social welfare group Empower Missouri, the U.S Senate version of Republican tax legislation would make Missourians collectively pay more in taxes by 2027 than under current law. Executive Director Jeanette Mott Oxford tells Missourinet the bill would mortgage away America’s future.
“The richest 1% of Missouri, their tax cut would be $42,000 on average in 2018 and would grow to $58,000 by 2027. Whereas, the bottom 60% of households actually would see their taxes raise by that 2027 year,” says Mott Oxford. “It’s a really poorly-structured tax reform that helps the folks that least need the help and has real dangers to how our state revenue is structured.”
The left-leaning Missouri Budget Project says the legislation being finalized in Congress could reduce the state’s general revenue by at least $700 million. Mott Oxford says the state legislature must fix its tax model to prevent serious harm to the budget and people. Otherwise, she says further pain will be inflicted by cuts to Social Security, Medicare, Medicaid, the Supplemental Nutrition Assistance Program, affordable housing, education, and other programs Missourians rely on.
“These safety net programs are not handouts. They’re hand-ups and they’re stability mechanisms to keep our communities from falling apart,” she says.
According to Mott Oxford, Missouri has not changed its income tax table since 1931.
“It’s hard to believe that we’re going to join hands and move forward to actually pass some sensible reform here in Missouri really quickly next year. I hope that happens, but past history makes me very frightened about what could happen in Missouri if this federal plan passes,” she says.
Supporters of the bill say tax cuts will put more money in the pockets of working families, create about one million jobs and improve the lagging economy. President Donald Trump wants Congress to pass the legislation by the end of the year.
Some House and Senate members are at the negotiating table before the final version moves to the president’s desk. They are considering whether to reduce the number of tax brackets currently required, double the standard deduction, cut the corporate tax from 35% to 20%, strip away the Obamacare mandate, eliminate the estate tax, allow a property tax deduction of up to $10,000 annually, among other things.
The non-partisan Congressional Budget Office (CBO) has reported the House and Senate tax plans would widen the federal deficit by $1.5 trillion during a 10-year period.