Shock tax bill proposal: Mega corporations to receive massive cuts while families scrape by

The Tax Relief for American Families and Workers Act has been promoted for its child tax credit component. However, it also contains provisions that substantially benefit the wealthy and corporations.

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Rep. Rashida Tlaib (D-Michigan) has announced her opposition to a bipartisan tax bill currently making its way through Congress. This legislation proposes significant tax reductions for corporations and the wealthy while offering limited benefits to working families through a modified child tax credit. The current proposal seeks to reduce the credit from its pandemic high of $3,600 to $2,000 per child annually and sets income limits that exclude the poorest families from receiving full benefits.

The Tax Relief for American Families and Workers Act has been promoted for its child tax credit component. However, it also contains provisions that substantially benefit the wealthy and corporations. These benefits include expanded deductions for businesses and retroactive tax breaks, building on the reductions provided by the 2017 Republican Tax Cuts and Jobs Act.

Tlaib criticized the corporate and wealthy-focused aspects of the bill, highlighting its potential to further benefit those at the top at a time of already significant wealth inequality. “The richest 0.1 percent of American households would get an average tax cut of $57,530,” Tlaib stated, contrasting this with the minimal $60 average benefit projected for the poorest 20 percent of families. She also pointed out that Meta’s effective tax rate could decrease from 25 percent to -2 percent if the legislation passes.

The bill’s estimated cost stands at $78 billion, with tax experts warning that the actual cost could reach $600 billion over the next decade if corporate tax cuts are extended as expected. A vote on the bill is scheduled for Wednesday in the House, amid concerns about its implications for economic fairness.

In response, Tlaib advocates for the End Child Poverty Act, which she introduced with Reps. Ilhan Omar (D-Minnesota) and Jesús “Chuy” García (D-Illinois). This legislation aims to combine elements of the current child tax credit and the Earned Income Tax Credit to create a universal child benefit of $428 per child each month, potentially reducing child poverty by 61 percent. Tlaib contrasts this proposal with the bipartisan bill, which she says would fail to fully support the poorest families and would have a minimal impact on child poverty.

The opposition to the tax bill is not limited to Tlaib. Other progressive lawmakers, including members of the Congressional Progressive Caucus, have expressed their disapproval. Rep. Rosa DeLauro (D-Connecticut) criticized the bill for not adequately supporting middle-class and impoverished families, stating, “This bill delivers massive tax cuts for the biggest corporations while denying middle-class families the economic security they had under the expanded, monthly child tax credit.”

As the bill moves to the Senate, its future remains uncertain, with potential Republican opposition viewed as a strategic move against President Biden. The bill’s passage could significantly impact the upcoming elections, highlighting the ongoing debate over tax policy and economic fairness in the U.S.

Rep. Tlaib summarized the concerns of many progressive lawmakers: “Working families in my district should never be paying higher taxes than the richest companies on earth. I cannot support a bill that deepens wealth inequality and economic injustice to benefit the richest Americans and corporations.”

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Ruth Milka started as an intern for NationofChange in 2015. Known for her thoughtful and thorough approach, Ruth is committed to shedding light on the intersection of environmental issues and their impact on human communities. Her reporting consistently highlights the urgency of environmental challenges while emphasizing the human stories at the heart of these issues. Ruth’s work is driven by a passion for truth and a dedication to informing the public about critical global matters concerning the environment and human rights.

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