ACPP news releases

If you're rich, the House GOP tax plan is great for you. If not? Not so much

The richest 1 percent of Alabamians would get large tax cuts that would grow even larger over the next decade under U.S. House Republicans’ tax plan, according to projections released Monday, Nov. 6, 2017, by the Institute on Taxation and Economic Policy (ITEP), a nonprofit research organization based in Washington, D.C. Meanwhile, nearly one in five Alabamians – including one in four middle-income taxpayers – would pay higher taxes by 2027 under the GOP plan, ITEP finds.

The plan would add at least $1.5 trillion to the federal deficit, setting the stage for cuts to education, health care and other services, Arise Citizens’ Policy Project executive director Kimble Forrister said.

“These tax cuts would hurt working families and the economy while giving even more money to people who are already wealthy,” Forrister said. “This plan would pave the way for deep cuts to federal funding for Medicaid, education, housing, transportation and other services that help everyday Alabamians get ahead. That’s a harmful path, and Congress should turn away from it.”

Key Alabama findings from ITEP’s study of the GOP tax plan include:

  • The top 1 percent of Alabama earners would receive an average tax cut of $40,990 in 2018. That number would jump to $58,200 by 2027.
  • Nearly one in five Alabamians (18 percent) would pay higher taxes by 2027 under the plan, including 25 percent of middle-income taxpayers.
  • Just 10 percent of the state’s total tax cuts in 2027 would go to the three in five Alabamians who would have incomes of less than $80,090 a year. Their average tax cut would shrink from $320 in 2018 to $180 in 2027.

“Any gains that working Alabamians would get from these tax cuts pale in comparison to the harm they’d suffer from cuts to education, health care and other vital public services,” Forrister said. “Congress should reject these tax cuts for the rich and work to build a better future for all of us.”

Click here for a PDF version of this news release.

GOP tax plan would slash taxes for wealthy people while laying groundwork for cuts to education, Medicaid

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Friday, Nov. 3, 2017, in response to the release of U.S. House Republicans’ tax proposal:

The House Republican tax plan is an expensive new giveaway to wealthy households and big corporations at the expense of working families. It would offer little or nothing to most Alabamians, and it actually would increase taxes for many low- and middle-income folks.

“This plan would add at least $1.5 trillion to the national deficit – and to pay for it, many in Congress will try next year to cut everything from education and Medicaid to food assistance for struggling families. Those cuts would make it even tougher for hard-working Alabamians to make ends meet.

“Taking from those who have the least to give to those who have the most is no way to build a better economy, a better state or a better world. Congress should reject this tax bill and focus instead on closing corporate tax loopholes and investing in education, health care, transportation and other vital services that help struggling families get ahead across Alabama and across the country.”

Executive order could mean soaring health insurance costs for Alabamians with pre-existing conditions

Arise Citizens’ Policy Project policy director Jim Carnes issued the following statement Thursday, Oct. 12, 2017, in response to the White House’s release of a new executive order on health care:

“This executive order risks turning back the clock to the bad old days when many people were priced out of health insurance just because they got sick. Allowing more insurers to sell plans that don’t cover essential health benefits would weaken consumer protections under the guise of promoting consumer choice.

“These changes could open the door to a wave of ‘cheaper’ plans that cost less because they don’t provide as much coverage. By luring in many healthier people, these plans could undermine protections for folks with pre-existing conditions like cancer and diabetes by sending costs soaring for more comprehensive coverage.

“Recent cuts to the Marketplace enrollment period, enrollment assistance and outreach activities already have created unnecessary barriers for consumers and threaten to reverse gains in health coverage and care. Today’s announcement doesn’t immediately change anything, but it sows even more confusion in the health insurance market just as tens of thousands of Alabamians are getting ready to enroll for 2018 coverage. It’s more important than ever for advocates and leaders across our state to ensure that Alabamians have the information they need to find affordable coverage that’s there for them when they need it most.”

New CFPB rule on payday, title loans is a good first step that should prompt further action to protect Alabama consumers

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Thursday, Oct. 5, 2017, after the Consumer Financial Protection Bureau (CFPB) announced a new federal rule on payday and auto title loans:

“High-cost payday and title loans have sent far too many Alabamians spiraling into a long-term cycle of debt. The CFPB’s new rule is a welcome move to protect struggling families from getting stuck in deep debt. The requirement for lenders to verify borrowers’ ability to repay before lending to them is an important, common-sense step to protect consumers.

“The CFPB rule is good news, but it’s far from a cure-all. The rule will not reduce the extremely high annual interest rates that Alabama allows on short-term loans: up to 456 percent a year for payday loans, and up to 300 percent a year for title loans. The new safeguards also don’t apply to many high-cost installment loans.

“Alabama needs to build on these new federal protections by capping interest rates at a reasonable level and ensuring borrowers have a reasonable amount of time to repay what they owe. These changes would be good for consumers and good for Alabama’s economy.”

More than half of GOP plan's tax cuts in Alabama would go to top 1 percent

Alabamians with incomes of more than $1 million would get an average tax cut of nearly $116,000 a year under the tax framework unveiled by congressional Republicans and the White House, according to a study released Wednesday, Oct. 4, 2017, by the Institute on Taxation and Economic Policy (ITEP), a nonprofit research organization based in Washington, D.C. One in seven Alabamians would pay higher taxes under the plan, which also likely would lead to cuts to Medicaid and other vital services.

Key state-level findings from the ITEP report include:

  • The top 1 percent of Alabama earners – those who make $501,800 or more – would receive 56.2 percent of the tax cuts going to the state.
  • Nearly half (49.2 percent) of the overall tax cuts that Alabama residents would get under the plan would flow to people with incomes of more than $1 million a year. They would receive an average annual tax cut of $115,900.
  • Just 12.5 percent of the state’s total tax cuts would go to the three in five Alabamians with incomes of less than $57,900 a year. They would see an average tax cut of $190 a year.
  • One in seven Alabamians (14.5 percent) would pay higher taxes under the plan.

U.S. Senate Republicans are considering a proposal to allow the tax cuts to add as much as $1.5 trillion to the federal deficit. That move would lay the groundwork for harmful cuts to services that help Alabamians get ahead, Arise Citizens’ Policy Project executive director Kimble Forrister said.

“These tax cuts would be a windfall for the wealthy at the expense of everyone else,” Forrister said. “This plan likely would force massive cuts to future federal funding for Medicaid, education, housing, transportation and other vital services that help everyday families make ends meet. Congress should reject these reckless tax cuts for the rich and focus on investing in education, health care and other services that help all Alabamians and all Americans get ahead.”

Click here for a PDF version of this news release.

Montgomery AL Non-Profit Website Design by BWS Internet Marketing Services