House Speaker Paul Ryan says the tax cut legislation is on track. He projected that nearly a million new jobs would be created. (House photo)
Published November 6, 2017
Two serious debates in Washington right now: Climate change and taxes. These are connected. And the decisions made over the next few days and weeks will impact you and your children’s future.
The federal government is required by law to publish a climate assessment. The report is out and it’s troubling.“Climate change, once considered an issue for a distant future, has moved firmly into the present. Corn producers in Iowa, oyster growers in Washington State, and maple syrup producers in Vermont are all observing climate-related changes that are outside of recent experience. So, too, are coastal planners in Florida, water managers in the arid Southwest, city dwellers from Phoenix to New York, and Native Peoples on tribal lands from Louisiana to Alaska.”
The National Climate Assessment concludes that the evidence of human-induced climate change continues to strengthen and that impacts are increasing across the country. This bill was required by Congress in 1990 to “understand, assess, predict and respond” to global warming. It represents the best science from across the federal government.
So how is the Congress and the Trump administration responding to the report?
Well, the White House basically said, no worries, the climate is always changing. Especially because the president and Congress are focused instead on tax cuts.
Tax policy is, of course, an important concern for tribal governments and enterprises. As Adrienne St. Clair reported for Cronkite News about a complaint from tribal leaders about not being included in the discussion. “Tribes struggle with economic growth because of things like basic federal tax law, dual taxation from state governments and budget cuts from the federal programs that serve them. They urged lawmakers to push for legislation that will help Indian Country, including increasing investment incentives and allowable tax credits,” St. Clair wrote.
And it’s not just tribes. A restructuring of federal taxes will impact American Indians and Alaska Natives in all sorts of ways.
I get tired of the debate being about “middle class” taxpayers. First of all, I (and most policy makers) don’t really know what that means any more. Most working families consider themselves middle class. And what about a young single mother trying to raise a family on $25,000 a year? In an ideal setting she would not pay any income taxes.
And the Republican proposal (that party distinction is important because there were no open hearings, or amendments, this is a Republican bill designed to win or lose on Republican votes) on the surface will save many American Indian and Alaska Native families money. The tax proposal would double the standard deduction to $12,000 for individuals and $24,000 for joint filers. That’s the amount of money you can earn sort of tax free. But the plan takes away deductions for children — so a larger family could end up paying more from the start because of the fewer deductions. (So less than half needed for the scenario of a single mother raising children.)
And that’s not all. The tax cuts for families don’t last. The Joint Committee on Taxation (the congressional agency that does the math) reports that families earning between $20,000 and $40,000 a year and between $200,000 to $500,000 would pay more in individual income taxes in 2023 and beyond. Republicans argue the tax measure would result in a million new jobs.
The total cost is not a bargain either, the tax cuts would add some $1.5 trillion to the debt over the next decade.
Let’s be clear: The goal of this tax measure is to cut taxes for businesses. Individuals are a side debate. Nonetheless, as the Center for Budget and Policy Priorities, points out 70 percent of that tax cut would flow to the top fifth of households, with one-third flowing to the top 1 percent alone.
There is another problem for Indian Country. This tax proposal is linked to a budget measure that has already passed Congress. And that budget calls for deep spending cuts across federal programs — think sequester times two or three. And because of the process used: the Senate will need just 50 votes to implement these severe budget cuts.
Congress’ budget also opens up the Arctic National Wildlife Refuge to oil and gas development — and an increase in fossil fuel production (the very cause of climate change).
This is a tough moment for that. The National Climate Assessment says Alaska is already at risk. “Alaska has warmed twice as fast as the rest of the nation, bringing widespread impacts. Sea ice is rapidly receding and glaciers are shrinking. Thawing permafrost is leading to more wildfire, and affecting infrastructure and wildlife habitat. Rising ocean temperatures and acidification will alter valuable marine fisheries.”
The Trump administration and the Republican leaders in Congress have made tax cuts their most important initiative. But the divide is similar to what we saw in the bills to repeal the Affordable Care Act. So the outcome is uncertain at best. And, unlike health care, there might be enough votes in either the House of Representative or the Senate to tank the tax bill.
However on Fox News Sunday Speaker Paul Ryan said the House is “on track” to pass this legislation before Thanksgiving. Hashtag: #TurkeyAlert.
Mark Trahant is the Charles R. Johnson Endowed Professor of Journalism at the University of North Dakota. He is an independent journalist and a member of The Shoshone-Bannock Tribes. On Twitter @TrahantReports