The 2018 budget resolution that the U.S. House of Representatives passed today would slash billions of dollars from programs that help Garden State families afford necessities and get ahead, according to a report by the Washington, DC-based Center on Budget and Policy Priorities. These damaging cuts pave the way for massive tax cuts for corporations and the very wealthy on the backs of working Americans. A budget resolution that would have similar, harmful effects on New Jerseyans is currently working its way through the Senate.
Both the House and Senate budgets set up a fast-track, partisan process for passing massive tax cuts for the wealthy and corporations. The GOP tax plan, released last week by congressional Republicans and the White House, would overwhelmingly benefit the top 1 percent in New Jersey, who would receive 82 percent of the tax cuts, a new analysis released by the Institute on Taxation and Economic Policy (ITEP) shows. New Jersey’s wealthiest 1 percent would receive an average $74,000 tax break each year while about 1 in 4 Garden State taxpayers would pay an average of $2,400 more in a year in federal taxes.
Not only would these tax cuts overwhelmingly benefit the very wealthy, they could also pile trillions onto deficits and likely force further cuts to health coverage and critical programs like education, and job training – and put more pressure on Social Security.
The bright side is that 10 of New Jersey’s 12 Congressional representatives, including a majority of its Republicans, voted no on the resolution (Reps. Frelinghuysen and MacArthur were the lone ‘yes’ votes from the Garden State).
Despite claims to the contrary, Congressional Republicans’ budget and tax plans would make life harder for working people across New Jersey. Instead of setting the stage for tax cuts that help those who need it the least and tax hikes that would harm so many in New Jersey, Congressmen Frelinghuysen and MacArthur should work to advance policies that invest in working families and boost the economy, while ensuring that tax cuts are paid for by closing tax loopholes or other responsible tax changes – not by running up the deficit and raising taxes on one in four New Jerseyans.
Despite congressional Republicans’ claims, their tax plan would do little to spur economic growth and at the same time would worsen the nation’s long-term fiscal outlook.
Kansans learned this lesson after Gov. Sam Brownback enacted a similarly drastic tax and budget plan in 2012. Following the cuts, Kansas lagged behind its neighbors in economic growth and job creation. The tax breaks created a budget shortfall of $900 million that sent the state’s finances into a tailspin and encouraged dangerous cuts to schools, road repair, and other key services that help working people and foster economic growth.