Statement on the House Republican Tax Bill
As an economist, I support tax reform, but that's not what this is. Representative McMorris Rodgers has voted for a bill that is bad for middle class families and for eastern Washington’s economy.
Though the wealthiest taxpayers and biggest corporations will benefit, some moderate and middle-income families will actually see their taxes rise.
Adding insult to injury, corporate tax changes are permanent while personal income tax changes are temporary and will dissipate over time.
This bill is particularly damaging to students, and families with high medical expenses. The ability to deduct Washington State sales taxes and local property taxes has been eliminated.
This bill will negatively impact eastern Washington’s economy.
Removal of tax-exempt bonds currently used for hospitals and affordable housing and other infrastructure projects will either result in fewer construction projects and jobs, or will increase the costs of the projects which will be passed on to state and local taxpayers.
It also adds over 1 trillion dollars to the national debt making up some of the cost by cutting medicare and making changes that will result in fewer people receiving medicaid. Hence, less federal support and more stress on rural and urban hospitals.
In conclusion, the vast majority of benefits goes to wealthiest families and biggest corporations and specific groups of taxpayers - students, farmers, and seniors will be harmed.
This is a bill that reflects national Republican donor priorities - not eastern Washington priorities.