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Republicans set to raise taxes on Kentuckians

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The House Republican tax bill is a giant giveaway to large corporations and wealthy Kentuckians at everyone else’s expense. The Senate is expected to vote as early as Thanksgiving night on the plan attempting to push it through by Friday.

Given Senate Majority Leader Mitch McConnell’s open support of the tax plan for the privileged few, Kentuckians must put pressure on Sen. Rand Paul to not increase taxes for the largest population of Kentuckians. Large corporations and the nation’s top 1 percent already don’t pay their fair share of taxes. This plan puts even more money in their pockets.

All of Kentucky’s Republican D.C. delegation voted in favor of the bill: Thomas Massie, Andy Barr and James Comer.

What you should know

  • The top 1 percent of Kentucky taxpayers will receive a 40 percent tax cut under the House Republican tax bill.
  • Kentucky’s top 1 percent will receive an average tax cut of $41,410 — more than 100 times what the average middle-class family would get.
  • Sixteen percent of middle-income Kentucky taxpayers should expect their taxes to increase by an average of $1,250 per household.

Hurting educators, students and graduates

  • The House Republican tax scam repeals a tax credit for Kentucky teachers who buy their own school supplies.
  • Kentucky college students will be directly affected by the plan. The GOP House tax scam makes student loans more expensive. Over 150,000 Kentucky graduates take advantage of the student loan interest deduction.  House Republicans plan would eliminate it cutting an average savings of $994.
  • The taxation of tuition waivers puts graduate students at financial risk. According to NPR, “Many grad students — especially in Ph.D. programs — receive tuition waivers in exchange for teaching classes or doing research. Under current law, that money isn't taxed as income. But the new bill calls for those tuition waivers to be counted as income and subjected to income taxes.”

Senior citizens

  • The Commonwealth of Kentucky’s seniors will find it harder to save for retirement or cover their medical bills.
  • Specifically, the House GOP tax scam would take away all state residents’ ability to deduct their medical expenses. More than 89,000 Kentucky residents deducted their medical expenses in 2014, saving an average of $9,522.
  • The House Republican tax bill could also force $25 billion in automatic cuts to Medicare next year. This would directly affect 793,159 Kentuckians who rely on Medicare.

Continuing the war on the working class

• After the state GOP attack Kentucky’s workers, the House GOP tax plan will also hurt Kentucky’s working class with yet another corporate tax giveaway. The Republican tax plan incentivizes large companies to move jobs overseas by giving them a 0 percent rate on most foreign profits — yes that’s a big ZERO.

While big corporations take advantage of this loophole, small businesses on Main Street will find it harder to compete.

• The Republican plan threatens to take the state and local tax deduction (SALT) away from tens of millions of households across the country. The deduction ensures that Americans are not taxed twice on the same income. Ironically, D.C. Republicans want to tax you more.

•In Kentucky, 420,000 residents would no longer be able to use the state and local deduction to save hard-earned money on their federal tax returns under the House tax plan.

Rural Kentucky loses

•  Distressed and rural communities could lose an important program that funds hundreds of hospitals, daycare facilities, alternative energy projects, and small businesses. The House GOP plan ends the New Market Tax Credits program, which has spurred over $1.617 billion in community investments in Kentucky — responsible for creating more than 8,000 full-time jobs since 2003.

For further state-specific details visit https://itep.org/housetaxplanky/