1. US Tax Policy Proposal: A Faith Perspective
Nancy Bertaux, PhD
Professor of Economics, Xavier University
Christ Church Cathedral
November 9, 2017

2. Context Long term increases in economic inequality
Bill Gates, Warren Buffett and Jeff Bezos now own as much wealth ($250 B) as the bottom half of the US population
Wealth represents accumulated income

3. Some Key Aspects
Estimated 1.5 Trillion adverse impact on federal budget (cuts in revenue not offset by spending cuts). Claims that will be largely offset by 3% increased growth (economists say max impact would be perhaps 1%)
Shifts tax burden proportionally, cuts tax rates on corporations (including S corporations) and wealthy individuals
Continues long term trend of increased reliance on (regressive) payroll taxes for federal revenue
Increases standard deduction, caps or eliminates some common deductions, may cause less use of itemized deductions.
Overall, may reduce taxes somewhat for many middle income households, while raising taxes somewhat for around 30% of these households

9. Bottom Line
In 2018, top 1% receive over 50% of the tax cuts in the proposal
By 2027, this rises to over 80%
Financing the tax cuts likely to lead to further taxes and spending cuts that adversely impact most households, including low and middle income

10. Taxes as % of GDP flat since 1950’s

11. Corporate tax share has fallen

12. Personal and payroll tax share has increased

14. Faith-Based Perspectives
What scriptures apply?
What does your faith add to your own perspective?
Why are some people willing to consider factors other than personal gain?
What can or should the church community do?