Tax Cuts For Wealthy Endanger Well-Being and Economic Health of Latino and Immigrant Communities

11.30.2017

For Immediate Release
Contact: Denise Lopez | denisel@mifamiliavota.org

TAX CUTS FOR WEALTHY ENDANGER WELL-BEING AND ECONOMIC HEALTH OF LATINO AND IMMIGRANT COMMUNITIES
Latinos Lose More Than They Gain From Tax Cuts Benefiting The Rich and Profitable Corporations, Say Advocacy Groups
(An audio recording of today’s news conference call is here; password:  92821)

WASHINGTON, DC — The massive tax cuts bill speeding through Congress that is weighted to the wealthy will harm 7 out of 10 Latinos families. It also will increase taxes for Latino small business owners, restrict eligibility for child tax credits affecting up to 5 million Latino children, and lead to funding cuts for key safety net programs like nutrition assistance that benefit millions of Latinos and children, advocates detailed Thursday on a press call.

With the GOP-led Congress rushing the tax cuts package, which will be paid for on the backs of middle-income and working-class taxpayers, including Latinos,  immigrants’ rights and Latino advocates highlighted the disproportionate impact on these communities.

“Latinos need to call Congress and tell members that we will not be tricked by their false promises of lower taxes,” said Ben Monterroso, executive director of Mi Familia Vota. Instead of adding to the gains Latinos made in 2015 and 2016, when Latinos’ median income went up and also their insured rate, “this tax plan takes us backwards by taking money out of our pockets and kicking us off health insurance. This is not tax reform but a tax scam — un engaño — on the middle class and working poor, including Latinos,” Monterroso added.

“Hidden language in the legislation that is particularly harmful for children — millions in Latino families — regards the Child Tax Credit. While sponsors highlight the doubling of the tax credit, the fine print leaves out children in low-wage families,” said Chuck Marr, director of Federal Tax Policy for the Center on Budget and Policy Priorities.

“In fine print, what was done deliberately was to exclude children whose parents work for low wages,” Marr said. “Landscapers, cooks, home health aides are, by design, left out of this bill,” impacting 9.7 million Latino children, Marr added.

Changes to the tax law that take away immigrant families’ ability to get the child tax credit obviously hurts children the most, said Jackie Vimo, Economic Justice Policy Analyst for the National Immigration Law Center. Among all mixed-status families, 85 percent are Latino, Vimo said.

Also, plans to undermine the Affordable Care Act by removing the individual mandate will result in 13 million people losing insurance and increase premiums. “As it is, Latinos and non-citizens are already insured at lower rates than U.S. citizens, and undoing the ACA will only increase those disparities. Our country is healthier and our economy is stronger when everyone has access to health coverage,” Vimo said.

“Latino small business owners also will be hard hit,” said Samantha Vargas Poppe, associate director of the Policy Analysis Center at UnidosUS. “By 2027, three in four Latino businesses will face tax increases. Our analysis shows that 3 million Latino-owned businesses would see increases of over $10,000 from expiration of tax reductions or loss of tax benefits,” Poppe said.

“UnidosUS stands with the chorus of voices opposing the irresponsible GOP tax plan. It gives massive cuts to the richest Americans and corporations, raises taxes on our families and small businesses, and will push the American Dream further out of reach for millions of Latinos. Our families and our country deserve better,” Poppe added.

For more information, please go to:

* Tax Hike on Immigrant Families Would Drive Up Child Poverty – National Immigration Law Center http://bit.ly/FactSheetTakeHikes

* Republican Plans to Cut Taxes Now, Cut Programs Later Would Leave Most Latinos Worse Off – Center on Budget and Policy Priorities  https://www.cbpp.org/research/federal-budget/republican-plans-to-cut-taxes-now-cut-programs-later-would-leave-most-2

* Latino Working Families Cannot Afford the GOP Tax Plan – UnidosUS https://www.unidosus.org/issues/economy/federal-budget

* The Federal Tax Code: Small Business Provisions and Latinos – UnidosUS – http://unidos.us/taxfacts

* GOP tax scam hurts Latinos – The Hill – By Ben Monterroso, executive director of Mi Familia Vota http://thehill.com/search/site/Ben%20Monterroso

###