It’s important to know what’s going on in Washington because the decisions made there affect all of us. There has been a flurry of activity since Congress returned from its recess, and we must remain vigilant in the fight to defend our livelihoods. Two of the top issues confronting working families are Trump’s reckless tax proposal and Congressman MacArthur’s health care amendment. The onslaught of information is intended to trip us up, but we’re not going to let them pull the wool over our eyes. The below list provides highlights of how these proposals may impact us so that we can stay informed and defend our economic future.
Trump Tax Plan
- Eliminates the federal deduction for state and local taxes, including property taxes, increasing the average annual tax bill for a New Jersey resident by more than $3,500.
- Lowers the capital gains tax primarily paid by wealthier Americans.
- Reduces the top tax rate from 39.6 percent to 35 percent.
- Repeals the 3.8 percent Medicaid tax levied only on individuals with at least $200,000 in investment income and married couples with $250,000. That money helps fund the Affordable Care Act, which extended coverage to more than 20 million Americans.
- Repeals the estate tax, which only benefits only multimillionaires.
- Does away with the alternative minimum tax, which forced Trump to pay millions of dollars in additional taxes, according to his 2005 personal income tax return.
MacArthur Health Amendment
- Preserves most of Trump/Ryan Care and adds provisions to make it even worse.
- Would cause about a half million New Jerseyans to lose their health insurance.
- Increases out-of-pocket health care costs by an average of $2,740 for 250,000 residents who purchased insurance through the Marketplace.
- Guts protections for preexisting conditions, impacting nearly 4 million New Jerseyans.
- Phases out Medicaid expansion, which would eliminate coverage for 562,000 residents and sharply reduce federal funds for the state’s budget.
It’s easy to see that these policies would have dramatic implications on the labor movement as well as all New Jerseyans. Trump’s tax plan is a massive transfer of wealth from working families to corporations and the rich. MacArthur’s plan would raise premiums on millions of New Jerseyans with preexisting conditions and in many cases make insurance unaffordable altogether.
We cannot let down our guard, and we must ensure that our future is not jeopardized by reckless politicians. While details continue to emerge on Trump’s tax plan, MacArthur’s health plan is advancing quickly, and we encourage everyone to CLICK HERE to take action.