Day 2 Tax Wrap Up: Larson Continues Fight for Fairness for CT Families
Washington, D.C. – Today, the Ways and Means Committee met for the second day of the mark-up of the harmful Republican Tax Plan. This proposal is a direct attack on Connecticut’s middle-class. The Republicans have turned the oldest Chamber of the House of Representatives into a theater for political grandstanding where they are working under a self-imposed timeframe to quickly pass their tax plan without hearing from expert witnesses, holding hearings, or listening to testimony from the public. Our Republican colleagues are not taking the concerns of the middle-class taxpayer seriously, a concern that they claimed was first and foremost in their tax bill. In response, my colleagues and I introduced a series of amendments aimed at protecting the middle-class and the people and families who would be most harmed by the Ryan-McConnell tax plan.
- Larson highlighted how the SALT elimination would greatly impact states and districts across the nation. This would result in double taxation for many Americans. This proposal divides the country against itself, dividing one region against another. Rumor has it that the Senate will preserve the SALT deductions. Watch Larson’s full remarks here.
- Larson called out the Republicans for eliminating the Work Opportunity Tax Credit (WOTC). The WOTC incentivizes employers to hire people who face significant barriers to employment, such as out-of-work youths looking for summer jobs. This program helps communities like the 06120 in the North End of Hartford and helps put people back to work. Larson spoke to fight for this program and the CT residents it has helped. Watch Larson Fight for the WOTC here.
The Joint Committee on Taxation released new data today that confirms that the GOP tax plan will increase taxes on millions of Americans. According the JCT, 17 million Americans tax-filers will see a tax hike in 2019 under this bill. By 2023, 20% of middle-income tax-filers with incomes between $75,000 and $100,000 will see a tax hike. This is in addition to an analysis by the New York Times that found the GOP plan will raise taxes on one-third of middle-income Americans next year and nearly half of middle income Americans in 2026. This isn’t a tax cut. It’s pitting one group of middle class Americans against another, while providing permanent tax reductions for corporations and the wealthiest Americans.
How does this affect the First District:
The 06120 is one of the poorest zip codes in America, so much so, it was designated a Promise Zone. The Promise Zone in the North End of Hartford has benefited from programs and tax incentives like the WOTC. For example, a company can hire a young person living the North End and receive a tax credit for hiring them. This young person ends up learning marketable skills that will be invaluable for their future careers. It is a win for the employer and a win for the employee.
The Democrats introduced the following amendments, none were accepted:
Democratic Amendment 1 - offered by Rep. Blumenauer of Oregon that would nullify H.R. 1 if, two years after enactment of the law, or upon yearly review thereafter, the deficit increases.
Democratic Amendment 2 – offered by Rep. Pascrell of New Jersey to reinstate the deductions for state and local sales/income taxes (SALT) that help lower the tax burdens of 41 percent of filers in Connecticut and helps them avoid double taxation.
Democratic Amendment 3 - offered by Rep. Kind of Wisconsin that would extend H.R. 1’s repeal of the individual state and local tax deduction to include repeal of the deduction for all business organizations.
Democratic Amendment 4 - offered by Rep. Kind of Wisconsin that would restore the Work Opportunity Tax Credit.
Democratic Amendment 5 - offered by Rep. Sanchez of California that would expand the Child Tax Credit to provide a $3,600 credit for families with young children, index the credit for inflation, eliminate the $3,000 earnings threshold for the refundable portion of the credit, and make permanent the $300 “family flexibility” credit. This amendment was identical to Rep. Rosa DeLauro’s Child Tax Credit Improvement Act (H.R. 821).
Democratic Amendment 6 – offered by Rep. Davis of Illinois that would reinstate the Adoption Tax Credit with refundability, the exclusion for employer-related dependent care, and the exclusion for employer-related adoption assistance programs as well as modernize the Child and Dependent Care Tax Credit by increasing credit amounts and making them refundable.
Democratic Amendment 7 - offered by Rep. Doggett of Texas that would apply the same tax rate on profits earned abroad as on profits earned at home. It will create a level playing field for domestic companies while maintaining a corporate rate for multinationals that is lower than the OECD average.
Democratic Amendment 8 – offered by Rep. Sewell of Alabama that would provide a tax credit to employers equal to a portion of wages paid to employees participating in qualified apprenticeship programs.
Larson’s previous statements on the tax proposal can be found here: