Warner & Kaine Condemn GOP Tax Plan for Driving Up Costs for American Families

WASHINGTON, D.C. – Just a week after Moody’s downgraded the U.S. credit rating due to mounting government debt, pushing up mortgage interest rates, Republicans in the House moved forward with their plan to provide massive tax breaks to the wealthiest Americans that would add an additional $3.8 trillion to the deficit, according to the nonpartisan Congressional Budget Office. U.S. Senators Mark R. Warner and Tim Kaine (both D-VA) issued the following statement:

“Moody’s decision to downgrade our nation’s credit rating should have been a wake-up call, but instead, Republicans in the House doubled down with a tax plan that blows a hole in the deficit and leaves working families holding the bag. The result will be a ballooning national debt, higher interest rates, and the very real prospect of increased prices for everything from groceries to mortgages. Virginia families are already feeling the pinch from inflation and rising costs. The last thing they need is a reckless giveaway to the richest Americans that undermines our economic stability and puts the full faith and credit of the United States at risk. In the Senate, we will oppose this disastrous legislation.”

Additionally, the GOP tax bill would add so much to the national debt that it could trigger nearly $500 billion in cuts to Medicare beginning next year, according to the CBO analysis.

The nonpartisan CBO report also confirmed what Warner and Kaine have previously warned – that working Americans will foot the bill for massive tax breaks handed to the wealthiest few, if President Trump and congressional Republicans move forward. The CBO found that under the GOP plan, the bottom 10 percent of Americans would see household resources reduced by 4 percent while the top 10 percent would see their resources increase by 2 percent. Meanwhile, the Republican bill would result in $698 billion in cuts to Medicaid and $267 billion in cuts to nutrition assistance. 

Warner and Kaine have been sounding the alarm about the effects of the GOP plan on Virginia families if Republicans in Congress continue to insist on gutting vital programs in order to pay for tax breaks for the richest Americans, noting that the GOP bill would strip health insurance from more than 262,000 Virginians, cut SNAP benefits for more than 204,000 people in Virginia, raise energy costs for Virginia households, jeopardize more than 20,000 Virginia jobs, and raise taxes on minimum wage workers while giving the richest 0.1% a $188,000 tax cut.

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