5 Big Losers in the GOP Tax Plan

The GOP is moving aggressively forward with its plan to overhaul the U.S. tax system, and thus far it’s not hard to determine who the winners of the proposal are: corporations and the wealthy. Simply put, corporations would pay taxes at a rate of 20 percent rather than 35, while 80 percent of the total tax cuts would go to the richest 1 percent of Americans.

As for the losers, there are many. With less tax money coming in overall, that means less money to fund the various social services and institutions from which we all benefit.

Then there are those whose taxes will actually go up under the Republican plan. Here are some of the people who could be screwed by the time they file in April:

1. A Large Chunk of the Middle Class

Family jumping together in front yard

For a bill that’s supposedly all about helping the middle class, it’s probably going to come as a rude awakening to many voters to discover that the tax plan actually ends up forcing them to pay more taxes.

A New York Times review of the plan finds that by next year, one-third of people in the middle class will be paying more in taxes – with that number going up to 45 percent within eight years. Most other economists have reached similar conclusions: the plan doesn’t do what it’s advertised to do.

The issue at hand is the proposed elimination of a variety of existing deductions. Republicans argue that getting rid of these breaks makes the process simpler, but that simplicity comes at the cost of some critical assistance that middle class families have relied on for decades.

2. Teachers

Teacher reading out to students in the library

It should come as no surprise to anyone that teachers reach into their own pockets to buy school supplies that our underfunded public schools don’t provide to students. Between papers, pencils, books and more, teachers spend an average of $1,000 each school year on classroom necessities.

The only bright side to this ridiculous situation is that teachers have been able to deduct up to $250 of this money on their tax forms. Not anymore, however. The GOP is cutting the educator expense deduction and teachers won’t get any relief.

The good news is most teachers do it because they’re generous and caring, so they’ll probably keep buying supplies without the deduction. Still, if that seems like a petty place to try to make up for the massive deductions being extended to billionaires… well, you’re right!

3. College Students

Smiling graduates embracing

It’s almost as if the GOP doesn’t care about education in general. They’re also targeting a longstanding student loan interest deduction, which allows people paying off their loans to deduct up to $2,500 that they’ve paid in interest each year. Under the new rules, the average borrower will be able to deduct just $202.

Republicans are also tossing the Lifetime Learning Credit, which allows college grads to deduct some of the tuition money they spent to defer the expensive cost of education.

On top of that, graduate students who receive tuition waivers (which they earn by working as researcher or teaching assistants while attending school) will now be taxed on that money they’re supposedly banking, even though that money is going directly toward their education rather than their bank accounts. That will make it all the more difficult for people to enroll as grad students with that extra expense to worry about.

4. Mortgage Holders

Person Hand Holding House Key

Buying a home is part of the American dream, but it’s not so dreamy when you can’t afford the payments on it. The GOP’s plan to cut the home mortgage interest deduction in half will leave home owners, particularly those who live in states where the cost of homes is exaggerated, with less relief come tax time.

Furthermore, the plan puts a limit on how much taxpayers can deduct for the amount of state and local property taxes they’ve already paid: $10,000. That means people in states with higher local tax rates (generally speaking, we’re talking blue states) will be paying a lot more in taxes overall.

5. Charities

Portrait of volunteers holding painting supplies

Although Republicans will not be touching charitable giving deductions in their upcoming plan, non-profits are bracing for an impending decline in donations.

The issue at hand is the higher standard deduction. By making the process simpler and more enticing to take a standard deduction, it’s likely that fewer people are going to fill out itemized tax returns; because people often are motivated to give to charity so they can include it on their itemized forms, it’s likely they’ll be less inclined to give.

Granted, the rich, who will have no use for the standard deduction, will still have that incentive to give. Keep in mind, however, that lower and middle class people are more generous with their money than the rich, so that is still likely to set non-profits back.

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Photo credit: Thinkstock


Marie W
Marie W7 months ago

Thank you

Lisa M
Lisa M7 months ago


Lisa M
Lisa M7 months ago


Danuta W
Danuta W7 months ago

Thanks for sharing.

Chrissie R
Chrissie R8 months ago

Thank you for posting.

Peggy B
Peggy B9 months ago


Chrissie R
Chrissie R9 months ago

Thank you for posting. I'm sick of negativity.

Sarah Hill
Sarah Hill11 months ago

I don't think this article is accurate. As to the mortgage deduction, we haven't been able to itemize in years. We have a rate of 2.something as we refinanced while rates were at their lowest. I think a lot of people who have held their mortgages for any length of time are in the same boat. With the individual mandate gone, we won't have to be paying that insurance premium! That will help a lot!

Amanda M
Amanda Mabout a year ago

It's also another underhanded attempt by the anti-choicers to sneak "personhood" onto a zygote, embryo, or fetus. They claim it allows parents-to-be to start a college fund already, but there is already a program in place for such things that allows the adults to act as proxy. By directly allowing people to attach such funds to a zygote/embryo/fetus, the RRR is hoping to not just make abortion illegal, but also ban most forms of contraception that they consider "abortifacients." They tried to sneak this in, but they got found out! And if this is allowed to pass, WOMEN will be added to the list of losers!

Brittany Evans
Brittany Evansabout a year ago