STATEMENT: Senate Republican tax plan makes progress but still puts unfair burden on working families

Oklahoma Policy Institute Director David Blatt released the following statement in response to new details from Senate Republicans about their tax plan:

We commend the Senate Republicans for committing to the principles that tax cuts must be paid for and that triggers are too risky during uncertain economic times. However, we have serious concerns that their plan puts an unfair burden on low-income working families and seniors. Tax cuts should be paid for, but not by raising taxes on working families. The plan eliminates the additional personal exemption for low-income seniors, and it ends the state Earned Income Tax Credit, a vital support to encourage work and investment while keeping families off welfare. Especially troubling is that the Senate plan makes the sales tax relief credit nonrefundable, while at the same time, several special-interest tax credits become refundable. The coal, wind, and construction industries would receive money back on their tax returns, but not working families who continue to pay a significant part of their incomes in sales taxes on groceries.

Read more about the EITC and other broad-based tax credits that are being threatened in our issue brief, “The Tax Cut Bait and Switch.” A 1-page action alert on defending broad-based credits is available here.