The $1.5 trillion GOP tax-cut plan released today contains most of the same flaws as earlier versions of their plan. It will do little to improve, and could hurt, the well-being of many Arkansas children and families.Every analysis I've seen is sure the plan as outlined increases the federal deficit significantly. Deficits used to matter to the GOP.
Our top takeaways include:
The plan dramatically cuts taxes for the wealthy and our most profitable corporations while leaving out, or doing very little, to help struggling Arkansas families.
It would significantly increase our nation’s deficits. If recent budget disasters have taught us anything – the Kansas debacle comes to mind – it’s that tax cuts targeting the wealthy do not pay for themselves, do little to promote economic growth, and would eventually have to be paid for through deficit spending and budget cuts. Arkansans would likely have to foot the bill for these deficits through future cuts to Medicare, Medicaid, and investments that help our economy grow and help families meet their basic needs and succeed.
Arkansas families would lose again at the state level because many provisions in the state tax code are tied directly to the federal one. Also, a large part of the state budget is federal revenue, so if it’s reduced, we would likely see tighter state budgets and the tough decisions that come with them.