An Anti-Latino Tax Reform
The Latino community will be the most affected by the Republican fiscal project.
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After alarming warnings about the effect that the Republican reform will have on the entire nation, several media outlets and experts have revealed that the most thriving communities in the country will also be the most affected by the tax cuts promoted by the GOP.
Renato Rocha, the economic policy analyst at the UnidosUS Research Office, told the Institute for Latino Policy that the so-called Tax Cuts and Jobs Act, promoted by both the Republican Party and President Trump, "will undermine the financial well-being of Latino families" in the country.
"It does this through increased taxes and decreased investments in federal programs," he said, "All to pay tax cuts to wealthiest Americans and largest corporations."
The analyst recalls that Latin Americans - once considered a negligible minority - have been the most important contributors to the economic recovery of the United States since the Great Recession. But history isn’t always fair: as recently as 2016, "about 19% of Latinos in the United States were living in poverty, compared to approximately 11% of Americans overall.”
This would imply that millions of working individuals are still struggling to make ends meet, put food on the table and get a roof over their heads. For these people, facing cuts in taxes and social programs will create a debacle for their general welfare.
Let us highlight, then, the data on the reform that justifies this assertion:
- Taxes for the middle and lower classes will be reduced initially, but those who earn less than $ 75,000 a year will perceive an increase in their taxes in 2027. We must remember that "seven out of ten Latinos" earn much less than that per year.
- It will increase the cost of medical coverage, as well as the number of people who will be left without any access to treatment, especially after the elimination of the Affordable Care Act’s Individual Mandate.
- The new bill will impose eligibility restrictions for refundable tax credits on immigrant taxpayers.
Research conducted recently by UnidosUS showed that the tax reform would not only affect Latin American families directly, it will also leave poverty prevention programs helpless.
This means that the black community and the average white American whose economic situation does not match that of the rich - who represent only 1% of the population – will be the main victims of the GOP plan.
For media outlets like The Hill, this reform is then a vulgar "deception" for the middle class, the poor worker and, more objectively, for the Latino who strives to emerge in a country that has historically insisted on turning its back on him.
"We must call our senators and representatives in Washington and tell them we will not be tricked by their false promises of lower taxes," the paper says. "This tax legislation is irresponsible and mean-spirited."