Pages tagged "Press"
- Following the introduction of the Senate Republicans' new tax proposal, Ted Boettner of the West Virginia Center on Budget and Policy released this statement:
"Like the House Republicans' tax proposal, the Senate GOP plan released yesterday would give hundreds of billions of dollars in tax cuts to wealthy households and major corporations at the expense of low-and middle-income families. In fact, the plan would ultimately hurt many low- and middle-income families.
The new Senate proposal would add at least $1.5 trillion in debt - and to pay for it, Republicans in Congress will almost certainly try to cut everything from nutrition assistance for struggling families to education and health care. Worse still, by completely eliminating the state and local tax deduction and forcing federal budget cuts that could shift new costs to states, the plan would likely put more pressure on West Virginia's budget, likely causing even more cuts to education, transportation, and other programs West Virginians count on.
Senators Capito and Manchin should reject the Senate GOP tax bill. Instead of tax cuts that help those who need it the least, West Virginia's senators should work to advance tax policies that invest in working families while ensuring that tax cuts are paid for by closing tax loopholes or other responsible tax changes."
- A new report released by the Center on Budget and Policy Priorities reveals the Supplemental Nutrition Assistance Program (formerly food stamps) helps almost 1.5 million low-income veterans, including 13,000 in West Virginia.
"We honor our brave men and women in uniform by ensuring their basic needs are met when they come home," said West Virginia Delegate Linda Longstreth (D-Marion), a former staff sergeant in the U.S. Army Medical Corps. "The 13,000 West Virginia Veterans who rely on the Supplemental Nutrition Assistance Program (SNAP) to put food on the table deserve a federal budget and tax plan that lifts them up, and what's currently on the table falls well short. You cannot be supportive of veterans and for this budget."
For low-income veterans, who may be unemployed, working low-wage jobs, or have disabilities, SNAP provides an essential support that enables them to purchase nutritious foods for their families.
"SNAP is a critical lifeline for veterans, particularly those who are just returning home from service," said Ellen Allen, Covenant House Director. "At Covenant House, we serve veterans struggling to piece their lives back together, find work and make ends meet. SNAP prevents these former service members from falling into or deeper into poverty."
Nationwide, SNAP is a critical tool in the anti-hunger and anti-poverty fight. The program kept 8.8 million people above the poverty line in 2014, including 4 million kids.
"SNAP is the most effective anti-hunger initiative we have in America. For 13,000 veterans throughout the Mountain State, it is the difference between having something to eat and going hungry," said Seth DiStefano, West Virginia Center on Budget and Policy Policy Outreach Director. "It is my hope this Veterans Day, our Congressional delegation and Governor take the time to closely scrutinize how budgets and policies at the Federal and State level impact those who have served when they come back home."
Under House Tax Plan Benefit For Richest 1 Percent in West Virginia Grows Over Time -- All Other Groups' Benefits Decline
For Immediate Release Contact: Caitlin Cook, 304.543.4879
- A 50-state analysis of the House tax plan released last week reveals that in West Virginia the wealthiest 1 percent of West Virginians will receive the greatest share of the total tax cut in year one and their share would grow through 2027. Further, the value of the tax cut would decline over time for every income group in West Virginia except the very richest.
House leadership continues to tout this tax proposal, which will increase the federal deficit by $1.5 trillion over the next decade, as a plan to boost the middle class. But a closer examination of the bill's provisions reveals that it is laser-focused on tax cuts for the nation's highest earning households.
The wealthiest West Virginian's share of West Virginia's tax cuts would grow over time due to phase-ins of tax cuts that mostly benefit the rich and the eventual elimination or erosion in value of provisions that benefit low- and middle-income taxpayers. For example, after five years, the bill eliminates a $300 non-child dependent credit that benefits low- and middle-income families while fully repealing the estate tax in year six for the very large estate subject to the tax.
More specifically, the 10-year outlook for the plan reveals that by 2027, the top 1 percent of households in West Virginia share of a tax cut would increase from 19 percent in year one to 29 percent by 2027, for an average cut of $21,090. Middle-income taxpayers' average tax cut would erode to $240 in 2027 from $450 in 2018, and the poorest 20 percent's average tax cut would decline from $80 in 2018 to $60 in 2027.
"Similar to previous plans, the House GOP tax plan primarily benefits the rich. While some low- and middle-income households in West Virginia may receive a small tax cut, the plan also raises taxes on some of these families and many may see no benefit at all," said Ted Boettner, West Virginia Center on Budget and Policy Executive Director. "Instead of simplifying the tax code and focusing on tax cuts for working families, this plan will likely come at the expense of low- and middle-income families who will likely lose more from cuts to education, health care, infrastructure or other public services than they gain from the small tax cuts they would receive."
- Following are some highlights of how the plan affects West Virginia:
- The share of low- and middle-income West Virginians seeing a tax hike under the House proposal increases between 2018 and 2027.
- 10 percent of taxpayers in West Virginia receive a tax hike in 2027.
- West Virginia's top 1 percent gets about 1/3 of the tax cuts in 2027.
- As a share of income, the top 1 percent's tax cut is 6.5 times larger than the middle-class' tax cut in West Virginia by 2027
The West Virginia Center on Budget and Policy is a public policy research organization that is nonpartisan, nonprofit, and statewide. The Center focuses on how policy decisions affect all West Virginians, especially low- and moderate-income families.
Lawrence Mishel, Sean O'Leary: If Right-to-Work Impacts Growth So Much, Why Leave it Out of Forecast?
Charleston Gazette-Mail - In economics, if a factor has a big impact on growth, then you take that factor into account in your projections. Apparently, the Bureau of Business and Economic Research at West Virginia University does not do so. In March 2016 the Bureau reported that turning West Virginia into a Right-to-Work state by 2017 would have an “employment growth effect of 0.56 percent” each year, an almost doubling of growth. Yet, when the bureau released its annual Economic Outlook Report for the state in October, the projection was for employment to grow just 0.7 percent over the next five years, trailing the projected national average of 0.9 percent per year.
Only two scenarios make sense. One is, if right-to-work had the impact that the bureau said it would, then employment projections should show growth of around 1.0 to 1.2 percent a year (adding the 0.56 to the 0.5 or 0.6 expected growth in earlier projections). This would show a sharp reversal for West Virginia’s growth compared to the nation. After years of lagging behind national growth, including the bureau’s right-to-work impact would show West Virginia exceeding national growth rates by 40 percent over the next five years, completely changing the state’s economic outlook. The other possibility is that West Virginia economic trends greatly weakened since early 2016, so perhaps the positive impact of right-to-work is offsetting this weakness. Neither explanation seems to work very well. It is noteworthy that the Bureau of Business and Economic Research report makes no mention of the state’s new right-to-work law, nor does the bureau report have any discussion of the newfound weaknesses of West Virginia’s economy.