The tax plan, also known as H.R. 1, doles out trillions of dollars in generous tax cuts – just not for the families who need the benefit the most. 1 in 8 people in the United States are facing hunger – many of them children and seniors. When so many have so little, we should be expanding efforts to help connect people with nutritious food and opportunities to get ahead…not shrinking them.
Incredibly, the individuals and families most at risk of being food insecure – those earning between $10,000 and $30,000 annually – will immediately face higher tax rates, according to the nonpartisan Joint Committee on Taxation. Over the next decade, those making up to $75,000 will see higher tax rates. That means stretching tight budgets even further and forcing families to make tough decisions about whether to put food on the table or pay their bills. Legislation that provides $5 trillion in tax cuts can surely do better by those Americans who do not know where their next meal is coming from.
The Short and Long-term Effects of H.R. 1
Makes it more difficult for hungry Americans to access resources needed to survive and thrive.
The legislation would change key provisions in the law that benefit low-income families including:
- Extending the child tax credit to taxpayers earning half a million dollars a year, while failing to make it available to the lowest income families in America.
- Ending the Work Opportunity Tax Credit, which encourages employers to hire recipients of federal nutrition assistance, and the New Markets Tax Credit, which stimulates investment in low-income urban neighborhoods and rural communities.
- Repealing the personal exemption, imposing a $4,000 tax increase on every member of a household. This increase will hit lower-income families especially hard.
- Eliminating numerous education benefits that help defray the cost of higher education for lower and middle-income Americans wanting to further their education, including the deduction for student loan interest and the Lifetime Learning Credit.
Increases likelihood of cuts to nutrition assistance programs.
The future of federal nutrition assistance efforts will be threatened by the $1.5 trillion in additional federal deficit created by the legislation. Recent history has demonstrated all too clearly that lawmakers will attempt to balance the budget by decimating programs and services designed to lift working individuals out of poverty, including those that provide vital food assistance.
Will likely lead to a decrease in charitable giving.
The people we serve rely on the Food Bank and government programs to help them get access to nutritious food every day. The Food Bank also relies on the generosity of individuals, corporations and foundations in our community to help us accomplish our mission. But changes in H.R. 1 will likely lead to a reduction in charitable giving, as determined by the research of the Joint Committee on Taxation.
Speak Out Against H.R. 1
Members of Congress are working this week to finalize the legislation and send it to the president for his signature. We get one opportunity to prevent the devastation of our neighbors and community members in need.
Tell your lawmakers that the 42 million people facing hunger in the U.S. can’t afford H.R. 1. Ask them not to undermine the future of our neighbors facing hunger as they prepare for a final vote on this bill.
Our federal programs are only as strong as the support they receive on Capitol Hill. Thank you for fighting to protect these vital programs so that no one in America goes hungry.