Senate Tax Plan Gives Big Tax Breaks For The Rich Paid For By Students And Working families

Senate tax plan gives big tax breaks for the rich paid for by students and working families

Funding for 370,000 education jobs at risk if U.S. Senate eliminates state and local tax deduction

RALEIGH—As part of its massive tax plan giveaway to the wealthiest and corporations, the U.S. Senate Finance Committee, along party lines, approved a multi-trillion bill tax bill that gives tax breaks to the wealthiest and corporations paid for by working families and students. The bill also could jeopardize the ability of states and local communities to fund public education to the tune of $370 billion over 10 years, leave 13 million Americans uninsured, and add $1.5 trillion to the nation’s deficit.

“Hypocrisy is at the heart of the tax plan approved by the U.S. Senate,” said NEA President Lily Eskelsen García. “It reveals the ill-conceived and misguided priorities of Republican leaders in Washington. Their plan takes from students and working families to pay for massive tax giveaways to corporations and the wealthy.”

The Senate tax bill eliminates the state and local deductions for people but keeps it for corporations. It leaves 13 million Americans without health insurance while cutting tax rates for corporations and boosting the incomes of wealthier people. Eliminating the state and local tax deductions could blow a hole in state and local revenue to support public education to the tune of $370 billion over ten years, potentially putting at risk funding for 370,000 education jobs, including more than 8,700 in North Carolina, according to a detailed analysis by the National Education Association.

The bill also adds $1.5 trillion to the national deficit. For now, much of the tax cuts are deficit-financed, but the budget resolution that helped pave the way for this plan previews the next phase: future legislation to cut the growing deficit caused by tax cuts by demanding cuts to critical services that help working people, children, seniors, and others – Medicaid, Medicare, education, and more.

“It is irresponsible to put funding for public education in North Carolina at risk,” said Mark Jewell, president of the North Carolina Association of Educators. “This potentially could translate into cuts to public education, more than 8,700 lost jobs to educators, and overcrowded classrooms that deprive students of one-on-one attention. It is outrageous to give massive tax breaks for the wealthy and corporations paid for by students and working families. This is a terrible bill for the residents of North Carolina and we urge Senators Burr and Tillis to soundly reject it.”

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The National Education Association is the nation’s largest professional employee organization, representing more than 3 million elementary and secondary teachers, higher education faculty, education support professionals, school administrators, retired educators and students preparing to become teachers.

Contact: Tim Crowley

919-832-3000 ext. 216