We can’t get something for nothing: More tax cuts for the wealthy will have to be paid for by growing the deficit or by more cuts to critical federal programs like health care, emergency response services, and child care for working families.
Four of the proposal’s most egregious tax cuts that would line the pockets of the ultra-wealthy at the expense of our communities are:
- The total repeal of estate tax, which is currently only paid by the wealthiest 0.2 percent of estate owners;
- The reduction of the federal tax rate on capital gains, which are profits from the sale of stocks and bonds, by 3.8 percent;
- A nearly 5 percentage point cut in the income tax rate for individuals in the top income bracket; and
- A cut in the top rate on “pass-through” business income, which is currently taxed at the business owner’s individual income tax rate, to 15 percent (which would overwhelmingly benefit wealthy investors while leaving out most small business owners).
Washington state already has the most upside-down tax code in the nation, in which everyday Washington families pay up to seven times more in taxes as a share of their income than the top 1 percent. Giving new federal tax breaks to the wealthiest 1 percent further stacks the tax code against middle- and lower-income Washingtonians, who will have a harder time getting ahead. This is bad policy for the country and for our state.