Florida Families Will Be Harmed by Senate Budget Resolution Vote This Week… Sens. Nelson & Rubio Should Vote NO
Healthcare for 4,357,200 Florida Medicaid Enrollees and 4,258,500 Medicare Recipients Is Jeopardized, so that Top 1% Can Get $130,300 Tax Cut… Meanwhile 11% of Middle-Class Florida Households Will Get a Tax INCREASE.
WASHINGTON – On Thursday this week, the U.S. Senate is expected to vote on whether to approve a Budget Resolution that will set the framework for how much federal spending and taxes will be cut. The proposal would allow for a $1.5 trillion tax cut mostly benefitting the wealthy and corporations, which is not paid for by closing loopholes, meaning the costs will be added to the deficit.
The ballooning of the deficit will jeopardize funding for Social Security, Medicare, Medicaid, education, and other services that America’s families rely on. Meanwhile, many middle-class families will see a tax INCREASE under the plan.
“The GOP budget plan pulls a reverse-Robinhood on 99% of the American people by cutting Medicaid, Medicare, help for disabled people, food assistance and Pell Grants, all to fund tax breaks for the wealthiest 1%. The GOP budget is a blueprint for making the rigged economy even more uneven for working families. The majority of voters, on both sides of the aisle, do not support cuts to health care and education. This is purely a budget for the 1% and should be rejected by Senators Nelson and Rubio,” said Helene O’ Brien, Florida Director of 32BJ SEIU.
This threat to the basic living standards of America’s working families is not abstract. The Senate budget proposes $5.8 trillion in cuts to federal spending, including nearly $500 billion from Medicare and $1.3 trillion from Medicaid and other healthcare programs. Another $650 billion may be cut from income security programs, such as Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families.
Florida’s working families and seniors will be particularly harmed, and Senators Nelson and Rubio should vote NO to protect their constituents.
See data below for the effects on Florida’s families.
TAX CUTS FOR THE RICHEST 1% IN FLORIDA FROM THE TRUMP-GOP TAX PLAN
- The richest 1% will get 68% of the total tax cut in 2018.
- Their tax cut will be $130,300 in 2018, on average.
- There are 104,200 Florida taxpayers in the richest 1%.
[Sources: Institute on Taxation and Economic Policy (ITEP) and ITEP taxpayers in top 1%]
TAX INCREASES ON THE MIDDLE CLASS IN FLORIDA FROM THE TRUMP-GOP TAX PLAN
- 10% of households would get a $1,420 tax increase, on average, in 2018.
- 11% of households making $33,700 to $54,200 would get a $740 tax increase, on average.
- 15% of households making $54,200 to $92,400 would get a $1,100 tax increase, on average.
[Source: Institute on Taxation and Economic Policy]
EFFECT ON FLORIDA OF REPEALING THE STATE AND LOCAL TAX DEDUCTION (SALT)
The Trump-GOP tax plan repeals the SALT deduction. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. SALT helps taxpayers, many of them middle-class, avoid being double taxed at the federal level.
- Repealing SALT would raise taxes on 15% of Florida taxpayers. Their tax increase would be $1,453 a year, on average. [Source: Tax Policy Center]
- For state and county level data on the number of households claiming the SALT deduction, the percentage that are middle-income and the average SALT deduction, see this report from the National Association of Counties.
- For congressional district-level data on the percentage of taxpayers claiming the SALT deduction and the average deduction claimed, see this report from the Government Finance Officers Association.
EFFECT ON FLORIDA OF REPEALING THE FEDERAL ESTATE TAX
The Trump-GOP tax plan eliminates estate and gift taxes, losing $240 billion over 10 years and boosting the inheritances of the very wealthy. The federal estate tax is paid only by estates worth at least $5.5 million, just 2 out of 1,000 estates, or only 5,500 estates in all of 2017. [Sources: Center on Budget and Policy Priorities (CBPP) and Tax Policy Center]
- Only 620 Florida estates will be subject to the estate tax in 2018.
[Source: Center on Budget & Policy Priorities]
- The estate tax will raise $3.3 billion in Florida in 2018—enough to pay for nutrition benefits for 2,207,421 people. [Source: Center for American Progress]
FLORIDA SERVICES & PROGRAMS AT RISK DUE TO TAX CUTS
To pay for massive tax cuts to the wealthy and corporations, President Trump and GOP leaders have proposed deep cuts to services that working families rely on. The Senate budget resolution would cut over 10 years:
- $1.3 trillion from Medicaid and other health care programs
- $470 billion from Medicare
- $650 billion from income security programs, which may include cuts to the Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families.
- Also at risk are Pell Grants and other financial aid to help students afford college.
- 33% of the state’s general revenues come from the federal government. [Source: Governing the States and Localities]
- Around 4,357,200 people are covered through Medicaid and the Children’s Health Insurance Program (CHIP) [Source: Kaiser Family Foundation (KFF)]
- 722,600 people with disabilities [Source: KFF]
- 2,328,300 children [Source: KFF]
- 610,500 seniors [Source: KFF]
- 119,000 veterans [Source: Families USA]
- 4,258,500 people are enrolled in Medicare, including original Medicare and Medicare Advantage plans [Source: Centers for Medicare and Medicaid Services]
- 3,188,900 people rely on SNAP food benefits [Source: U.S. Department of Agriculture (Fiscal Year 2017 monthly average)]
- 517,300 college students benefit from Pell Grants [Source: U.S. Department of Education, Table 21]
With more than 163,000 members in 11 states, 32BJ SEIU is the largest property service workers union in the country.