The Fight for Fair Taxes Continues
Over the weekend, the Senate passed its “Tax Cuts and Jobs Act” by a vote of 51-49. This is a tax plan that will have devastating impacts on working Americans for decades to come. Both the House and Senate have voted to proceed to conference in order to reconcile their differences and come up with a final bill.
Last week, National CAPACD urged our members to call their Senators to oppose the tax plan. Now more than ever, your members of Congress need to hear from you about the damaging effects of the proposed tax plan on our communities. It is especially important to reach out to members of Congress on the conference committee because they will determine what is in the final bill. You can find a list of the conference committee members here.
Increasing the Deficit Puts Safety Net Programs on the Line
Both versions of the tax plan include dramatic tax cuts that benefit wealthy Americans and corporations at the cost of decreased funding for critical programs that our communities rely on, including federal discretionary housing investments, low-income tax credits, Medicare, Medicaid, social security, and SNAP. According to the Congressional Budget Office, the tax plan would increase the deficit by $1.4 trillion over the next 10 years, which means that these crucial programs would continue to be at risk in the coming years. Additionally, the Senate bill’s ACA repeal provision would leave an additional 13 million Americans without health insurance in order to pay for tax cuts of nearly $100,000 per year for the top .1%, according to the Center on Budget and Policy Priorities.
Low Income Housing Will Not Be Built
As the House and Senate enter into conference, we are very concerned about the Low Income Housing Tax Credit. The House bill repeals private activity bonds, including multi-family Housing Bonds, which are used to generate nearly half of the financing that is available under the program. Both the House and Senate bills lower the corporate tax rate from 35% to 20%, which will reduce the value of the Low Income Housing Tax Credit and the amount of equity capital available from it. If absorbed into the joint bill, these two changes could result in nearly 1 million fewer affordable housing units being built over the next ten years, according to the ACTION Campaign. The House and Senate bills also put critical housing and community development programs, like the National Housing Trust Fund, Capital Magnet Fund, Community Development Financial Institutions Fund, and many others, at risk.
Mobilize Against This Bill!
Both the House and Senate tax plans dramatically reduce the opportunities and protections available to those who need it most, demonstrating that they are not concerned with our communities and further exacerbating the racial wealth divide in this country. Our communities have a right to affordable housing, healthcare, social safety net programs, and critical supports for those most vulnerable—a right that is being unconscionably denied in the current versions of the tax bill.
Tell your members of Congress to oppose the tax bill. Call the Capitol Switchboard at (202) 224-3121, which will connect you directly with your member of Congress. The future of our communities is in grave jeopardy and we MUST come together to mobilize against the bill.