Locking in further regressive tax cuts would just make the TCJA worse

Hunter Blair

Hunter Blair Budget Analyst, EPI

The House is set to vote this week on a second round of tax cuts that Republicans have dubbed “Tax Reform 2.0.” The first Republican tax cut, the Tax Cuts and Jobs Act (TCJA), was incredibly regressive with the worst component being a corporate rate cut that Republicans chose to make permanent. We said at the time that arguments that corporate rate cuts would trickle down to typical workers were bunk. And so far there is little evidence to suggest anything different.

Now House Republicans are hoping to solve a political problem—the unpopularity of their signature tax cut in 2017—by centering a second round of tax cuts on making the individual cuts in the TCJA permanent to achieve parity with the already-permanent corporate rate cuts. Republicans are marketing this as a tax cut for the middle class, but it’s nothing of the sort.

The second round of Republican tax cuts are still tilted towards the topShare of total federal tax change by income quintile, 2026

While the TCJA’s individual tax cuts may be less tilted towards rich households than the extremely regressive corporate tax cuts, these individual cuts are still awfully regressive in their own right. According to the Tax Policy Center, the bottom 60 percent, households making under $95,000, would get just 20.2 percent of the benefits. While the top 20 percent, households making over $168,600, would receive 63.0 percent of the benefits.

Locking in further regressive tax cuts won’t fix the TCJA, it will only exacerbate its deep flaws. Congress should reject this second round of Republican tax cuts for the rich.

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Reposted from EPI

Posted In: Allied Approaches

Union Matters

Human Service Workers at Persad Center Vote to Join the USW

From the USW

Workers at Persad Center, a human service organization that serves the LGBTQ+ and HIV/AIDS communities of the Pittsburgh area, voted last week to join the United Steelworkers (USW) union.

The unit of 24 workers, ranging from therapists and program coordinators to case managers and administrative staff, announced their union campaign as the Persad Staff Union last month and filed for an election with the National Labor Relations Board (NLRB).

“We care about our work and the communities we serve,” said Johanna Smith, Persad’s Development, Communications, and Events Associate. “We strongly believe this work and our connections to our clients will only improve now that we will be represented by a union.”

The Persad workers join the growing number of white-collar professionals organizing with the USW, especially in the Pittsburgh region. Their membership is also in line with the recent work the Steelworkers have been doing to engage LGBTQ+ members and improve contract language regarding issues that affect their lives.

“Workplaces are changing and evolving, and the labor movement is changing and evolving along with that,” said USW Vice President Fred Redmond, who oversees the union’s LGBTQ+ Advisory Committee as well as the USW Health Care Workers Council. “This campaign gives us an opportunity to diversify our great union while uplifting and empowering a group of workers who give their all for others.”

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There is Dignity in All Work

There is Dignity in All Work