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tax cuts
UAW President Denounces Trump-GOP Budget Law as 'Total Betrayal' of American Working Class
"This bill isn't governance," said United Auto Workers president Shawn Fain. "This is a class war waged from Capitol Hill."
Jul 09, 2025
After Republicans pushed their unpopular reconciliation package through Congress last week, U.S. House Speaker Mike Johnson hailed the legislation as a step toward "a future where working Americans can feel relief."
But Shawn Fain, the president of the United Auto Workers (UAW), argued in an op-ed Tuesday for The Detroit News that such "hollow promises" are an attempt to obscure "a brutal agenda: stripping working-class people of security, dignity, and power while lining the pockets of billionaires" with trillions of dollars in tax breaks.
"The budget reconciliation bill that the Republicans just passed isn't just bad policy—it's a full-blown attack on America's working class," wrote Fain. "For the UAW and the millions of workers we represent, four core issues define what it means to live and work with dignity: a livable wage, affordable healthcare, retirement security, and time to enjoy life beyond the job. On every one of those fronts, this bill delivers nothing but setbacks."
Fain pointed specifically to the GOP law's more than $1 trillion in cuts to Medicaid. Those cuts, combined with Republicans' refusal to extend Affordable Care Act subsidies that are set to lapse at the end of the year, are expected to strip health coverage from around 17 million Americans over the next decade, according to the nonpartisan Congressional Budget Office.
The UAW president also points to the Republican law's lesser-known attack on Medicare recipients. The legislation, which President Donald Trump signed into law late last week, would restrict enrollment in Medicare Savings Programs—potentially causing more than a million low-income seniors to lose access—and force more than $500 billion in automatic cuts to Medicare.
"These aren't numbers on a spreadsheet," Fain wrote. "These are real people losing access to lifesaving care."
"By passing this legislation, the government is telling working-class families they're on their own while billionaires get even more tax breaks."
While the Trump White House and congressional Republicans have tried to cast the budget law's tax provisions as worker-friendly—in some cases by outright lying about what's in the legislation—Fain noted that the law's limited deductions for tips and overtime will only benefit a small sliver of Americans, and only until 2028.
"On the other hand, many of the tax benefits in this bill for the wealthy are indefinite and have no expiration date," Fain wrote. "This is the same bait-and-switch the Trump administration used to sell its 2017 billionaire tax giveaway to the American people: small, temporary tax breaks for working people, with massive, long-term benefits for the wealthy and corporate America."
"This bill isn't governance. This is a class war waged from Capitol Hill," Fain continued. "It shifts the balance of power even further toward the billionaire class and hollows out the rights and dignity of labor. By passing this legislation, the government is telling working-class families they're on their own while billionaires get even more tax breaks."
"It's a total betrayal," he added.
Fain is among many prominent labor leaders who spoke out forcefully against the Republican budget measure and warned about its potentially catastrophic impact on millions of workers.
National Nurses United, the nation's largest nurses union, called the day of the bill's final passage one of "the darkest days in the history of U.S. healthcare."
"People will suffer and die because of the cuts in this legislation to fund tax cuts for billionaires—certainly in the short term and potentially for decades to come if nothing is done," the union said. "Lawmakers have effectively signed the death warrants for millions."
Liz Shuler, president of the AFL-CIO, said that "every member of Congress who voted for this devastating bill picked the pockets of working people to hand billionaires a $5 trillion gift."
"But if the politicians who rammed through this shameful bill think they can sneak away without anyone knowing the damage they've done and the chaos they've created," said Shuler, "they don't know anything about the labor movement."
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'Indefensible': Trump Budget Law Subsidizes Private Jet Owners While Taking Healthcare From Millions
A provision of the budget law that President Donald Trump signed last week will leave taxpayers to "pick up the tab for the private jet industry and billionaire high flyers."
Jul 07, 2025
The Republican budget measure that U.S. President Donald Trump signed into law late last week contains a provision that analysts say will allow private jet owners to write off the full cost of their aircraft in the first year of purchase, a boon to the ultra-rich that comes as millions of people are set to lose healthcare under the same legislation.
FlyUSA, a private aviation provider, gushed in a blog post that with final passage of the unpopular budget reconciliation package, "business jet ownership has never looked more fiscally attractive or more fun to explain to your accountant."
The law, crafted by congressional Republicans and approved with only GOP support, permanently restores a major corporate tax break known as 100% bonus depreciation, which allows businesses to deduct the costs of certain assets in the first year of purchase rather than writing them off over time.
Forbes noted that the bonus depreciation policy "applies to a slew of qualified, physical business expenses which depreciate over time, such as machinery and company cars, but the policy is often associated with big-ticket luxury items, such as private aircraft, and its institution last decade led to a boom in jet sales."
"Trump and congressional Republicans have certainly delivered for the billionaire class."
Chuck Collins, director of the Program on Inequality at the Institute for Policy Studies, called bonus depreciation "a massive tax break for billionaires and centi-millionaires that use the most polluting form of transportation on the planet."
"A corporation purchasing a $50 million private jet could potentially deduct the entire $50 million from their taxes in the year of the purchase, rather than spreading the deduction over many years," Collins wrote. "This amounts to a massive taxpayer subsidy, as ordinary taxpayers pick up the tab for the private jet industry and billionaire high flyers."
"Subsidizing more private jets on a warming planet is reckless and indefensible," he added.
The National Business Aviation Association, a lobbying group for the private aviation industry, celebrated passage of the Republican legislation, specifically welcoming the bonus depreciation policy as "effective for incentivizing aircraft purchase." (The Institute for Taxation and Economic Policy argues that "depreciation tax breaks have never been shown to encourage more capital investment.")
Meanwhile, communities across the United States are bracing for the law's deep cuts to Medicaid and federal nutrition assistance, which are expected to impose damaging strains on state budgets and strip food benefits and health coverage from millions of low-income Americans.
"Trump and congressional Republicans have certainly delivered for the billionaire class," said Robert Weissman, co-president of Public Citizen. "This is certainly one of the cruelest bills in American history, backtracking on the country's painfully slow history of expanding healthcare coverage and, equally remarkably, taking food away from the hungry."
"That's a lot of needless suffering just to make the richest Americans richer," he added.
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Trump White House Lies About Budget Bill's Tax Cuts as US Public Opposes Giveaway to Rich
White House Press Secretary Karoline Leavitt misleadingly touted tax deductions for overtime and tips—while neglecting to mention the bill's much larger tax breaks for the wealthiest Americans and large corporations.
Jul 03, 2025
As the Republican reconciliation bill barrels toward final passage in Congress, the Trump White House is misrepresenting the measure's tax provisions in an attempt to paint the unpopular legislation as a boon for workers and ordinary seniors rather than a massive handout to the wealthiest Americans.
In an X post late Wednesday, White House Press Secretary Karoline Leavitt declared that any lawmaker who opposes the 887-page bill is voting against "no tax on tips," "no tax on overtime," and "no tax on Social Security" benefits.
Leavitt's post was sufficiently misleading as to draw a "community note" on the Elon Musk-owned platform, which clarified that the Republican bill "does not fully eliminate taxes on tips, overtime, or Social Security as claimed; it offers limited deductions with caps (e.g., $25,000 for tips, $12,500 for overtime) and excludes high earners, with no provision to remove taxes on Social Security."
As Axios reported Thursday, the Republican legislation does include "an increased tax deduction for tax filers age 64 and older," but the benefit "leaves out the poorest seniors" and expires in 2028, when President Donald Trump is set to leave office.
The tax deductions for overtime and tips also expire in 2028.
That's unlike the major tax breaks for the wealthy that are included in the legislation, which extends soon-to-expire provisions of the 2017 Trump-GOP tax law. For example, the new Republican bill would permanently raise the estate tax exemption, allowing ultrawealthy individuals and married couples to give their heirs up to $15 million or $30 million without paying any federal taxes.
"A married couple worth $30 million where both spouses die in 2026 would pay some $6 million less under the bill compared with current law," The Wall Street Journal observed.
Brendan Duke, senior director for federal budget policy at the Center on Budget and Policy Priorities, estimates that the GOP reconciliation bill's tax breaks for the richest 1% are roughly 10 times larger than the tax deductions for tips and overtime combined.
You left something out. https://t.co/LwMFX2nbyM pic.twitter.com/9Dn2FoBZNH
— Brendan Duke (@Brendan_Duke) July 3, 2025
The Institute on Taxation and Economic Policy (ITEP) noted in a recent analysis that the Senate-passed legislation also "includes permanent corporate tax breaks (involving more generous versions of tax rules for bonus depreciation, research, and limits on interest deductions) that lawmakers have attempted to enact in recent years."
Contrary to the Trump White House's characterization of the reconciliation bill as a historic "middle- and working-class tax cut," ITEP found that "the richest 1% of Americans would receive a total of $117 billion in net tax cuts in 2026."
By contrast, according to ITEP, "the middle 20% of taxpayers on the income scale, a group that has 20 times the number of taxpayers as the richest 1%, would receive less than half that much, $53 billion in net tax cuts that year."
"The effects of President Trump's tariff policies alone offset most of the tax cuts for the bottom 80% of Americans," the group added. "For the bottom 40% of Americans, the tariffs impose a cost that is greater than the tax cuts they would receive under this legislation."
Survey data released Wednesday by Data for Progress shows that the Republican legislation is unpopular with a majority of likely U.S. voters. The new poll, conducted between June 27 and July 1, found that 62% of Americans are either somewhat or very concerned about the bill's "cuts to income taxes on wealthy Americans."
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