Prominent labor unions in the U.S. are fed up with the tax cuts that former President Donald Trump's administration imposed, and now they want the laws that enable such cuts to be repealed.
These unions have already sent a letter to different Congressional leaders, who have openly criticized these cuts as something quite unfair and also irresponsibly designed.
What the unions are referring to is Trump's Tax Cuts and Jobs Act (TCJA), which was deemed to have benefited the wealthy and diminished the tax revenues of the government. The TCJA made permanent and huge cuts to corporate taxes while only temporary cuts were made to individual taxes, and also estate tax cuts, The Hill reported.
Individual provisions in the tax cuts are bound to expire in 2025 and the result of the 2024 elections will play a key factor in determining whether these cuts will be modified or renewed, and in worst case, completely abandoned.
In an estimate by the Congressional Budge Office (CBO), the individual cuts will cost approximately $3.3 trillion up to 2035. However, unions who have also followed the path of progressive organization say that they would like to see an overhauling of the tax code.
For the unions, tax reform would mean bigger taxes for corporations and other wealthier households.
"Tax reform must result in a more progressive tax code that asks higher-income and higher-wealth households, corporations, and Wall Street to pay a greater share of their income in tax than they would in the absence of the TCJA," the unions said.
In the implementation of the TCJA, the once 35% corporate tax was reduced to 21%. However, despite this, the labor sector did not feel any real benefits from such reduction since they did not see higher worker wages.
Next year, among the provisions that will be expiring are the inheritance and gift tax exemptions.
According to LPL Financial, a reversion of the taxes to previous levels "will result in a significant increase in the number of estates subject to federal estate tax and a higher estate tax liability for estates already subject to the estate tax."
Other proposals from conservatives include a 23% sales tax on all consumption, which according to Rep. Buddy Carter (R-GA) was an "idea whose time has come."
"Probably the most hated tax of all is the payroll tax," Carter said.
"We all recognize and realize that we have to pay taxes and we've got to support the government, but we would prefer a consumption tax where we can be in control," he added.
