House congressional leaders are expected to release their tax plan today, Nov. 2 – a day after it was originally scheduled to come out.
This is the tax bill that President Trump has been promoting and that analysis has shown will primarily benefit the wealthiest 1 percent in America and will cause the U.S. deficit to increase by $1.5 trillion.
As all Americans prepare for Congress to muddy the waters about what this tax bill means here’s a simple formula to keep in mind:
The U.S. defense industry appears to understand the reality of this formula and is now one more group that is very concerned about future federal budgets cuts as the U.S. deficit is increased simply to pay for GOP tax cuts.
Defense News reports that the U.S. defense industry is asking Congress “to avoid adding to the deficit because companies are fearful that higher deficits will encourage cuts to defense spending in the long run.”
The core issue that the defense industry brings up is exactly the same concern various other groups across North Carolina and America have brought up regarding the future budget cuts to Pell Grants and student loans, Medicaid, Medicare, food assistance through SNAP, Social Security Disability Insurance, and housing assistance – just to name a few.
As we stated back in March, when the White House released its first budget blueprint:
“The recipe of what has truly made America great over time has been its ability to prioritize effectively various policies, including security, in order to serve all Americans and provide for a more prosperous future that considers a wide array of current and emerging issues.”
As it relates to the federal budget and the proposed GOP tax plan, the ultimate question for the president and Congress at this time is: Which of the following is more important?
- Tax cuts for the wealthiest and most profitable corporations; or
- Investing in our security and the building blocks that promote thriving communities in this country
Based on the choices that the president and Congress have made recently, Americans across the country need to make their voices heard now to help them choose the answer that will strengthen our country not hurt it.
Luis A. Toledo is a Public Policy Analyst for the Budget & Tax Center, a project of the North Carolina Justice Center.