The Arc logo

How to Help After Hurricanes Harvey and Irma

/in /by The Arc

Hurricanes Harvey and Irma left a staggering path of destruction. Throughout Texas and Florida and neighboring states, people will start rebuilding their homes and their lives, and they will need all our support to recover from the storms.

Here are some ways that you and people with disabilities in your life can work together to help our neighbors in Texas and Florida begin the slow process of recovery.

Volunteer

Many websites list volunteer opportunities to serve the community, including the chance to serve people impacted by the hurricanes. While some of these may be in Florida and Texas specifically, other opportunities to help may be in your hometown!

Check out these searchable databases for your chance to serve those in need: All for Good, Create the Good, Do Something, Eventbrite, HandsOn Network, Idealist, MeetUp, and Volunteer Match.

Give

One way to support people affected by the hurricanes is through giving.

People with intellectual and developmental disabilities served by chapters of The Arc, the chapters themselves, their employees, board members and volunteers have been impacted and are starting the long process of recovery. If you want to give, consider making a donation to The Arc of the United States Disaster Relief Fund. The Arc Texas also has a page available to donate specifically to disaster relief from Hurricane Harvey. You may also want to consider donating directly to state and local chapters in Florida and Texas to support their relief efforts.

To give more broadly, both The American Red Cross and Salvation Army have pages available for you to donate to people in need.

Keep Focused

The effects of these hurricanes will be felt over the next days, months, and years. As you seek to help, look for opportunities to stay engaged and to give to meet not only the need today, but future needs as well.

The Arc logo

House Committee Advances Bill to Cut Off Basic Income for Adults With Disabilities, Seniors

/in /by The Arc

Yesterday, by a vote of 23 to 14 the U.S. House of Representatives Committee on Ways and Means advanced legislation to cut off Supplemental Security Income (SSI) benefits for potentially hundreds of thousands of people with disabilities and seniors.

As amended by the Committee, H.R. 2792 would revive a failed former policy by targeting SSI recipients with outstanding arrest warrants for alleged felonies or alleged violations of probation or parole. This former policy ended following the resolution of class action litigation.

Federal law already prohibits payment of SSI benefits to people fleeing from law enforcement to avoid prosecution or imprisonment, and the Social Security Administration has a process in place to notify law enforcement of the whereabouts of such individuals.

Based on experience with the former policy, H.R. 2792 would not help law enforcement to secure arrests, but instead would target people whose cases are inactive and whom law enforcement is not pursuing. Most of the warrants in question are decades old and include warrants routinely issued when a person was unable to pay a fine or court fee, or a probation supervision fee. Many people are not even aware that a warrant was issued for them, as warrants are often not served on the individual. Some people will be swept up because of mistaken identity, or paperwork errors, which can take months or even years to resolve. Many people will face barriers to clearing their records based on the nature of their disabilities or their current circumstances, for example, an individual with Alzheimer’s in a nursing home.

Resolving an old arrest warrant can often involve significant time and expense, such as when a person has moved and lives far from the jurisdiction that issued, but never pursued, a decades-old warrant. Anecdotally, a very high percentage of people affected by the former policy were people with mental impairments, including people with intellectual disability.

“SSI benefits average $18 per day and are the only personal income for over one in three beneficiaries. Cutting off these modest SSI benefits will cause significant hardship and will only make it more difficult for people to resolve old, outstanding arrest warrants. Congress should reject this extreme and unconscionable proposal,” said T.J. Sutcliffe, Director, Income and Housing Policy.

As discussed at the Committee markup, the House is expected to propose to use savings from cuts to SSI under H.R. 2792 to pay for legislation to reauthorize the Maternal, Infant, and Early Childhood Home Visiting (MIECHV) program, also marked up by the Committee yesterday.

“Home visiting helps to improve maternal and child health and increases access to screening and early intervention for children with disabilities. Reauthorization of this valuable program should not be paid for by cutting off SSI for people with disabilities, seniors, and their families,” said Sutcliffe.

As highlighted in a fact sheet by the Consortium for Citizens with Disabilities, here are two stories of people harmed by Social Security’s former failed policy: Rosa Martinez, the lead plaintiff in one of several class action law suits brought against the policy, and a juvenile survivor of childhood abuse:

  • Mistaken Identity: Rosa Martinez, the lead plaintiff in Martinez v. Astrue was, in 2008, a 52-year old woman who received notice from SSA that she was losing her disability benefits because of a 1980 arrest warrant for a drug offense in Miami, FL. Ms. Martinez had never been to Miami, never been arrested, never used illegal drugs, and is eight inches shorter than the person identified in the warrant. Despite an obvious case of mistaken identity, Ms. Martinez was left without her sole source of income while she cleared up the error on her own, without any help from SSA. It was only after filing a lawsuit that Ms. Martinez was able to receive her benefits.
  • Juvenile Survivor of Childhood Abuse: A young man in California with intellectual disability and other mental impairments had his SSI benefits stopped because of an Ohio warrant issued when he was 12 years old and running away to escape an abusive stepfather. The 4’7” tall, 85-pound boy was charged with assault for kicking a staff member at the detention center where he was being held until his mother could pick him up. Many years later, he had no recollection of the incident.

More stories of people harmed by SSA’s former failed policy are available from Justice in Aging.

The Arc logo

Choosing Between a Paycheck and Health: New Report on Paid Family Leave and the Disability Angle

/in /by The Arc

Washington, DC –Today, The Arc and the Georgetown Center on Poverty and Inequality are releasing a first of its kind paper outlining why paid family and medical leave is a necessity for the economic security and stability of people with disabilities and their families.

The need for paid family and medical leave is universal. Nearly all of us will need paid leave at some point – to care for a family member’s or our own serious medical condition, or to welcome a new child into a family. Missing from the national conversation is the disability angle. One in five Americans live with a disability. Yet the reality is, in the U.S. workforce, only 1 in 7 workers has access to paid family leave to care for a family member with a serious health condition. Roughly 2 in 5 workers report they lack access to any paid leave.

“Millions of workers in our economy either have a disability, or have a family member with a disability. Yet largely under the radar has been the disability community – too many people are being forced to choose between a paycheck and their own health or a family member’s health. This paper aims to elevate the disability angle on paid leave, a national issue with growing momentum,” said co-author TJ Sutcliffe, Director, Income and Housing Policy, The Arc.

“If policymakers are serious about improving employment outcomes of people with disabilities, they should work to establish a comprehensive and inclusive paid family and medical leave program,” said co-author Kali Grant of the Georgetown Center on Poverty and Inequality. “We know paid leave has wide-reaching benefits, and that’s particularly true for people with disabilities and their families.”

Many people in the U.S. struggle to get by and pay for basics. That’s particularly true for people with disabilities and their families, who are more likely to live in poverty, have limited savings to fall back on, and face added disability-related expenses and barriers to work.

The paper found that households with one or more members with a disability have an average household income that is only about two-thirds that of households where no one has a disability. As highlighted in the paper, according to the National Disability Institute, 31% of people with disabilities say it is “very difficult” to cover their monthly expenses, compared to 15% of people without disabilities. And 4 in 5 people with disabilities lack any sort of rainy day fund.

Workers with disabilities are particularly likely to be in part-time, low-wage jobs that often don’t offer even basic benefits – much less paid family and medical leave. Over 2 in 3 part-time workers don’t have even one sick day. Workers with disabilities are twice as likely as workers without disabilities to be part-time.

“By offering job-protection, continuing health coverage, and temporary replacement income, comprehensive paid leave has the potential to ensure financial stability for the millions of working families with a member with a disability,” said Grant.

To fully address the needs of all Americans, including people with disabilities and their families, the paper recommends that a national paid leave approach should, among other things, be accessible to all working people and reflect a modern definition of family, cover all the major reasons that people need to take leave (one’s own health, a family member’s health, a new child), replace sufficient wages so that people can make ends meet, be for long enough to promote positive outcomes, ensure that people can keep their jobs and health insurance, and include education and outreach that is fully accessible to people with disabilities.

“Knowing that your job will be there for you if you take paid leave is a must for nearly all of us. And disability knows no geographical, socio-economic, or political boundaries. Other countries have done better, and American workers, including people with disabilities and their families, desperately need better,” said Sutcliffe.

Hear one family’s story about paid leave, and meet others who have personal experience with paid leave.
The Arc advocates for and serves people wit­­h intellectual and developmental disabilities (IDD), including Down syndrome, autism, Fetal Alcohol Spectrum Disorders, cerebral palsy and other diagnoses. The Arc has a network of over 650 chapters across the country promoting and protecting the human rights of people with IDD and actively supporting their full inclusion and participation in the community throughout their lifetimes and without regard to diagnosis.

Editor’s Note: The Arc is not an acronym; always refer to us as The Arc, not The ARC and never ARC. The Arc should be considered as a title or a phrase.

The Georgetown Center on Poverty and Inequality (GCPI) works with policymakers, researchers, practitioners, and advocates to develop effective policies and practices that alleviate poverty and inequality in the United States. Further information about GCPI and their Economic Security and Opportunity Initiative (ESOI) is available at www.georgetownpoverty.org.

The Arc logo

The Arc on the DACA Announcement: “Ending DACA Is an Assault on Community Inclusion”

/in /by The Arc

Washington, DC – Today, The Arc released the following statement on the news that President Trump will wind down the Deferred Action for Childhood Arrivals, or DACA, program:

“The Arc’s public policy goals include protecting against forms of discrimination including that based on disability, ethnicity, race, religion, language, national origin, or any other protected status. The goals also call for providing a fair opportunity for people with disabilities to reside legally in the U.S. and to become citizens. We also urge appropriate waivers of immigration law to allow for active recruitment of direct support workers.

“For hundreds of thousands of young people with the DACA protected status, their nightmare came true with the news that the program will end and they are at risk of deportation for a decision years ago made by others when they were children. Many would be sent to countries they have no real knowledge of or contacts in. In some cases, deportation could be dangerous.

“Amongst those at risk are people with disabilities, their parents, siblings, friends, and allies. The natural support system for a person with a disability tends to be their family, and over the last several decades, American society has moved toward inclusion in the community instead of isolation for people with disabilities. And so when the family is ripped apart – siblings sent thousands of miles away, a person with a disability separated from their parents – life is turned upside down. When communities lose people of different abilities and backgrounds, we all lose. Ending DACA is an assault on community inclusion and would move our country backwards.

“This is a cruel outcome that Congress must fix before it’s too late – before people are shown the door and their lives, families, and communities are impacted forever,” said Peter Berns, CEO, The Arc.

The Arc logo

The Arc on Defeat of Senate Health Care Bill: “Never Underestimate the Power of the Disability Community”

/in /by The Arc

Washington, DC – The Arc released the following statement following the defeat of the Health Care Freedom Act in the United States Senate:

“Never underestimate the power of the disability community, who took on this civil rights fight for themselves and future generations.

“The defeat of this disastrous health care bill is a huge win for people with intellectual and developmental disabilities and their families. The Arc thanks all Senators who voted against this bill. Medicaid and the home and community based services and supports program funds are safe, for now.

“Make no mistake – we still have work to do. This year, Congress and the Administration have put on the table over a trillion dollars in cuts to the program, and so the threats remain, whether they resurface in another health care bill, a tax bill, or at any time. Last night, 49 Senators voted for more than $200 billion in Medicaid cuts, and to strip 16 million individuals of their health insurance. Just a few months ago, the House passed legislation that included over $800 billion in cuts to Medicaid, and to take health insurance away from 22 million people. Each vote in favor of these cuts devalued the lives and rights of people with disabilities in our nation. States would have been forced to cut people from the Medicaid rolls or to substantially reduce services; home and community based services were at greatest risk. This harmful bill was crafted behind closed doors, in a disgraceful process that showed a callous disregard for the lives at stake.

“So the work of our movement continues. Advocates across the country will reach out to their Senators and Representatives to thank those who opposed this approach, voice their concerns about threats to Medicaid, and continue to educate elected officials about why Medicaid matters to them,” said Peter Berns, CEO, The Arc.

The Arc advocates for and serves people with intellectual and developmental disabilities (IDD), including Down syndrome, autism, Fetal Alcohol Spectrum Disorders, cerebral palsy and other diagnoses. The Arc has a network of over 650 chapters across the country promoting and protecting the human rights of people with IDD and actively supporting their full inclusion and participation in the community throughout their lifetimes and without regard to diagnosis.

The Arc logo

This Week Is 52nd Anniversary of Medicaid and Medicare: The Irony of Celebration During Times of Attack

/in /by The Arc

By: Nicole Jorwic, Director of Rights Policy

This week in July is always a big one, this year the disability community came together to celebrate the 27th anniversary of the signing of the Americans with Disabilities Act and the 52nd anniversary of the Medicaid and Medicare programs. But a large looming shadow hung over these celebrations, the current healthcare proposals in the House and Senate.

Nicole speaking at the Medicaid CelebrationDuring the past six months, most of my professional life has been consumed by the fight to save Medicaid. Today I was honored to speak as a sibling and professional at a Capitol Hill event celebrating the 52nd anniversary of Medicaid and Medicare, to highlight why we must continue our fight to SAVE MEDICAID.

My Remarks:

My name is Nicole Jorwic, I am the Director of Rights Policy at The Arc of the United States. The Arc promotes and protects the human rights of people with intellectual and developmental disabilities and actively supports their full inclusion and participation in the community throughout their lifetimes.

I am here today though, as a sister. My brother Chris will be 28 years old tomorrow and has autism, he is the reason that I do the work that I do, and as a Medicaid recipient, he is one of the millions of individuals at risk if the proposals in the House and Senate healthcare reform bills become law.

Chris and Nicole We know the numbers – between 22-32 million will lose coverage, millions will lose Medicaid and anywhere from $202 billion (in the “skinny repeal”) to $836 billion (in the House bill) in cuts to federal Medicaid spending. But those numbers represent people, they represent Chris, they represent the 43 heroes from National ADAPT that were arrested last month after staging a die in at Senator McConnell’s office.

That’s right, a die in because Medicaid is literally life and death for people with disabilities. I was lucky enough to be there in solidarity with National ADAPT last month and as I watched people who I respect and admire being pulled from the wheelchairs they use, literally putting their bodies on the line for people like Chris, I wept.

The current proposals quite simply devalue groups of human beings, gutting the Medicaid program, a program that over 10 million people with disabilities and families like mine rely on, and they show that the drafters of this legislation don’t see the value in investing in the lives of the poor, the aging population, pregnant women, people with disabilities, including my Chrissy.

Medicaid is so much more than a health program, it funds long term supports and services that allow people with disabilities to live their full life in the community. Medicaid funded the communication device that gave my nonverbal brother a voice, so that he can advocate for himself. Medicaid funds the day support services that allow my mom, a college professor, and my dad, a small business owner, to remain in their jobs.

SiblingsFamilies like mine started The Arc over 65 years ago to get people OUT of Institutions and included in their communities, and now those antiquated and segregating services may be the only thing left. This is because institutions and nursing homes remain mandatory services, while home and community based services are optional, and will therefore be the first cut when the devastating federal cuts to Medicaid come to the states. We cannot let that happen, we must SAVE MEDICAID. People’s lives literally depend on it. Chris’ does.

The proposals to decimate the Medicaid program to provide tax cuts to corporations and the wealthy is morally reprehensible. As an advocate and Chris’ sister I will do everything I can to stop the current healthcare bills and protect the integrity of the Medicaid program that we are here celebrating today.

The Arc logo

The Arc Warns that the Senate Republican Health Care Legislation Continues to Pose a Severe Threat to People with Disabilities

/in /by The Arc

Washington, DC – The Arc released the following statement following the release of the updated Senate Republicans’ health care legislation discussion draft:

“A new draft, new talking points, same devastating impact on people with intellectual and developmental disabilities. It is disheartening to know that Senators were in their districts for the last week, yet the pleas of their constituents with disabilities have been ignored with the latest draft of this legislation. This response to the extensive and impressive outreach from the disability community is an insult to people with disabilities and their families.

“The Better Care Reconciliation Act is an assault on people with disabilities and we implore Senators to do the right thing and oppose this bill. A vote in favor of this bill is a vote against the progress of the disability rights movement and constituents who rely on Medicaid for their independence,” said Peter Berns, CEO of The Arc.

On June 22, 2017, the Senate Budget Committee released a discussion draft of health care reform legislation, the “Better Care Reconciliation Act of 2017” (“Senate bill”). The Congressional Budget Office (CBO) released an analysis of the cost of the bill and the impact on health care coverage. CBO found that at least 22 million fewer individuals would have health care coverage by 2026. CBO also found that the Senate bill cuts Medicaid by $772 billion over 10 years, but the most severe cuts do not begin to take effect until 2025. Starting in 2025, the cuts are billions more than the cuts in the House bill and would increase significantly over time. CBO found that, compared to current law, Medicaid would decrease by 35% in 2036.

The current discussion draft from the Senate did include a woefully inadequate home and community based four-year demonstration program for rural states.  A total of $8 billion is available over four years.  In contrast, the discussion draft retains the $19 billion dollar cut made to the Community First Choice Option which is a program available to any state that chooses the option with no end date.
The Arc advocates for and serves people with intellectual and developmental disabilities (IDD), including Down syndrome, autism, Fetal Alcohol Spectrum Disorders, cerebral palsy and other diagnoses. The Arc has a network of over 650 chapters across the country promoting and protecting the human rights of people with IDD and actively supporting their full inclusion and participation in the community throughout their lifetimes and without regard to diagnosis.

The Arc logo

Advocacy Is Working: Turn Up the Heat This July 4th Congressional Recess

/in /by The Arc

By Peter V. Berns, CEO

Peter Berns at the U.S. Capitol with (left to right) Sen. Cory Booker; Janel George, National Women’s Law Center; Rep. John Lewis; Sen. Brian Schatz; and Sen. Kirsten Gillibrand.

This week, I had the immeasurable honor of sitting on the steps of the U.S. Capitol and talking with Senator Cory Booker and Representative John Lewis about our fight to save our health care and access to community living under the Affordable Care Act and Medicaid. Over the course of our discussion, we were joined by Senators Brian Schatz, Kirsten Gillibrand, Chris Murphy, Chris Coons, and Jeff Merkley.

It was an amazing and inspiring evening — even as we feared a looming vote in the Senate on legislation that threatens the health, independence, and lives of millions of Americans with disabilities.

Over the last few weeks, from coast to coast we’ve seen people with disabilities and their allies speaking up and taking action– including chapters of The Arc and their members. Among the many recent highlights from our network:

Chapters of The Arc in VA rallying

Virginia chapters of The Arc joined advocates in Washington, DC for a rally on June 6.

While that Senate vote didn’t happen this week, our fight continues. Senators will travel home for a Fourth of July recess with some hoping to vote on a revised bill when they return. Now is the time to ramp up our advocacy even more – keep up the calls to your Senators.

Attend community events and be visible with your support of Medicaid – showing up matters. July 4th is Independence Day, and Medicaid provides independence for millions of people. Make signs and bring friends and family to parades and other community events. Take pictures and share them on social media to encourage others to get involved to protect Medicaid and stop this dangerous bill. Additionally, some Senators may host public town hall meetings during the recess. Check out this resource listing scheduled town hall meetings across the country (it is regularly updated) and find out if your Senators are hosting one.

As Representative John Lewis said to us on the steps of the U.S. Capitol, “Many of us are called at a time to be witness, witness to the truth. You have to tell the truth and speak truth to power. You have to find a way to get in the way. To get in trouble. Good trouble. Necessary trouble, to change things. So I appeal to each and every one of you to go out and to do your very best. If you fail to act, then history may not be kind to us. We cannot let the American people down.”

We couldn’t agree more.

Please #JoinOurFight and take action over the Fourth of July Congressional recess to #SaveMedicaid.

The Arc logo

The Arc Takes to the Air for Autism Acceptance Month

/in /by The Arc

Wings for Autism® event volunteers
Photo Credit – Duncan Moffat

Thank you so much for facilitating the Wings for Autism program which was held in Mobile, AL Saturday. We attended this activity with our daughter who has Down Syndrome. She has never flown. She thrives on rehearsing a situation prior to its occurrence and her participation in this event allowed her to store background knowledge of what to expect when she takes a trip. – Parent from Mobile, AL.

Every April, The Arc joins many other disability rights in the US and around the world in celebrating Autism Acceptance month. It is a time to promote greater understanding of the myriad societal barriers that people on the autism spectrum face on a daily basis and encourage greater inclusion within our communities. For The Arc, April marks one of the busiest and most exciting times for one of its most highly celebrated and recognized national programs: the Wings for Autism®/Wings for All® program.

This year, The Arc of the US worked with local chapters of The Arc, airlines, airports and the Transportation Security Administration (TSA) to bring the Wings for Autism®/Wings for All® program to seven different airports across the country during Autism Acceptance month. Nearly 200 families attended these events, many of whom had no prior air travel experience out of fear that being in an airport or on an aircraft would be too difficult and frightening for their loved one with intellectual and developmental disabilities (IDD).

WCNC forecaster Larry Sprinkle
Photo Credit – Duncan Moffat

The month began with a festive and historic Wings for Autism® event at Charlotte Douglas International Airport (CLT). The Arc of Mecklenberg County and The Arc of Union/Cabarrus County teamed up with The Arc of the US, Delta Air Lines, TSA an the Doug Flutie Foundation to bring the event to CLT airport for the first time in the program’s history. To honor the occasion, local celebrity and weatherman for WCNC-Charlotte, Larry Sprinkle, was on hand to greet families, take photos and announce the Wings for Autism® flight prior to boarding.

After boarding the plane and visiting the cockpit, participants took their seats for a brief taxi around the runway, which allowed for passengers with disabilities get accustomed to the sensations of a moving plane. As the aircraft came back to the gate, all those on the plane and gate area were surprised with a water cannon salute – an honor reserved only for retiring pilots, inaugural flights for new flight routes, and other rare occasions during which two firefighting rigs spray arcs of water over an arriving or departing flight. This came as a surprise to all families on board, event staff and even several of the flight crew who had never witnessed this unique aviation tradition.

I wanted to say thank you again for you and your organization putting on such a fun, non-stressful event today! We all had such a great experience. We learned so much today and how we can make traveling easier. – Parent from Atlanta, GA

A full flight
Photo Credit – John McHugh/Ocaid Photography

We were delighted to take part in South Bend International Airport’s second Wings event. Not only did Wings provide our new officers with valuable experience of working with individuals with intellectual and developmental disabilities, it also allowed them to share in the joy felt by parents and children as they successfully passed through our security checkpoints. – Armand Collins, Transportation Security Manager, TSA.

These events have an incredible impact on people with disabilities and their families, and we often get heartfelt notes after the event. One such note read: “I don’t have the words to adequately express my thanks for this evening’s Wings for Autism event. We have been so worried about how our daughter would deal with the plethora of unknowns associated with air travel and you have now made future air travel a reality for us. Too many times, as a parent of a child with ASD, you feel like doors are closed to your child and/or your family. Well, tonight, you gave her wings!”

Representatives from Delta Air Lines, CLT airport and TSA were also amazed and humbled by their Wings experience. “Being able to host a Wings for Autism Event was a very special moment for the Delta team in Charlotte,” said Jill MacDonald, Delta Air Lines. “As airline employees we take air travel for granted and for our team to be able to open up the possibility of flying for the families of children and young adults with autism, that was extremely gratifying. This was an unforgettable experience and one that we look forward to hosting for many years to come.”

The Arc of Mecklenberg and The Arc of Union/Cabarrus were thrilled and look forward to another Wings event in the future. “Wings for Autism was probably the most meaningful and impactful event I have been part of professionally,” said Nancy Hughes, Executive Director, The Arc of Mecklenberg. “Delta, Charlotte Douglas International Airport, and TSA all went above and beyond to make the event amazing for participating children and families. The consensus feedback from families indicated that it was life-changing, because it opened the door to travel that many thought was closed.”

Looking for a Wings event in your city? Keep an eye on our event listing!

Originated by the Charles River Center, a local chapter of The Arc in Massachusetts, and the Massachusetts Port Authority, Wings for Autism® was created to alleviate some of the stress that families who have a child with autism experience when traveling by air. The program also provides TSA agents, airline and airport staff with a unique perspective on the challenges that individuals with autism spectrum disorders and other disabilities face in air travel and much-needed training on how to better meet the needs of individuals with disabilities and their families.

The Arc logo

Can People With Disabilities Afford This Tax Cut?

/in /by The Arc

By Annie Acosta, Director of Fiscal and Family Support Policy

May 1, 2017 – Washington, D.C. President Donald Trump released an outline of his tax reform proposal on April 26. In what he calls “the biggest individual and business tax cut in American History,” the President offers a plan than would disproportionately benefit the wealthiest of citizens and substantially add to federal deficits and the debt. Low income Americans, including the disproportionate number with disabilities, would eventually be faced with even greater cuts to critical federal programs to make up for the resulting budget shortfall.

President Trump’s 2017 Tax Reform for Economic Growth and American Jobs

“The Biggest Individual and Business Tax Cut in American History”

Goals for Tax Reform

  • Grow the economy and create millions of jobs
  • Simplify our burdensome tax code
  • Provide tax relief to American families—especially middle-income families
  • Lower the business tax rate from one of the highest in the world to one of the lowest

Individual Reform

  • Tax relief for American families, especially middle-income families:
    • Reducing the 7 tax brackets to 3 tax brackets for 10%, 25% and 35%
    • Doubling the standard deduction
    • Providing tax relief for families with child and dependent care expenses
  • Simplification:
    • Eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers.
    • Protect the home ownership and charitable gift tax deductions.
    • Repeal the Alternative Minimum Tax.
    • Repeal the death tax.
  • Repeal the 3.8% Obamacare tax that hits small businesses and investment income.

Business Reform

  • 15% business tax rate
  • Territorial tax system to level the playing field for American companies
  • One-time tax on trillions of dollars held overseas
  • Eliminate tax breaks for special interests

Process:
Throughout the month of May, the Trump administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive – and can pass both chambers.

To understand the impact of this tax plan on people with intellectual and developmental disabilities (IDD) and their families, it is also necessary to look at some of the basic facts about current tax policy. As the leading charitable organization advocating on behalf of people with intellectual and developmental disabilities, The Arc seeks to ensure that federal funding for programs that help our constituents to live meaningful lives in the community is preserved.

Essential federal programs like Medicaid, Social Security, Supplemental Security Income, and the many discretionary programs – like education, housing, and employment – are all funded through tax dollars, whether through individual, corporate, payroll, excise, estate, or other taxes. As stated by former Supreme Court Justice Oliver Wendell Holmes, Jr., “taxes are the price we pay for a civilized society.”

In addressing the impact of the plan, it is necessary to look at the assumptions in the plan’s goals, along with some of the details of the proposed changes:

  • Grow the economy and create millions of jobs is a basic goal and assumption of this plan. However, the argument that tax cuts will be made up for by increased economic activity has long been discredited by leading economists. At most, a small percentage can be recouped. Read more on this from the Committee for a Responsible Federal Budget.
  • Simplify our burdensome tax code. Reducing the current 7 tax brackets to 3 tax brackets (for 10%, 25% and 35%) does little to make taxes any easier to complete. It would simply lower the amount of revenue generated.
  • Provide tax relief to American families, especially middle-income families. The implication that America is a high tax country is only true if the United States is compared to all nations, including the majority that are developing. When compared to other developed nations, the U.S. tax burden is below average. Learn more on comparative income taxes from the Pew Charitable Trusts.On average, Americans pay an effective income tax rate of 9.5 percent, according to research by the Tax Policy Center. As shown below, however, the federal tax system is progressive with middle income Americans paying a much lower rate. Those with incomes between $30,000 and $50,000 pay almost no federal taxes, and consequently, would stand to gain very little with the Trump tax cut plan.
  • Lower the business tax rate from one of the highest in the world to one of the lowest. While the top statutory corporate tax rate of 35% in the U.S. (shown right) is, in fact, among the highest, the effective tax rate is much lower. The average effective tax rate – the actual rate paid after deductions and credits – is slightly lower than other developed countries (27.1% versus 27.7%). See Congressional Research Service (CRS) report for more information.

Further, it is important to note that corporate tax contributions have been steadily declining for decades. As shown below, the corporate share of federal tax revenue now only accounts for 11% of federal revenue, down by two-thirds in 60 years.

One of the reasons for this drop is changes in how corporations are operating and being taxed. An increasing number of corporations’ profits are subject to no taxation (foreign profits that stay abroad) or different taxes (income tax in the case of S corporations). S corporations are structured as “pass through” entities. They do not pay the corporate income tax, but rather pass profits through to owners who pay tax under the individual income tax at a lower rate. Over 90% of U.S. businesses do not pay the corporate tax rate.

President Trump’s plan to allow S corporations to pay the proposed top business rate of 15% instead of the rate they pay under their current individual tax rate (see brackets below) would disproportionately benefit the very wealthy while draining public revenues. Currently, only individual income below $37,950 a year is taxed at 15 percent or less. Under the Trump plan, anyone who makes their income via a pass-through entity would pay the 15% rate no matter how much they made. President Trump owns over 500 such business entities, according to the Trump Organization’s tax counsel.

Not explained in the President’s plan is that it will increase deficits by an additional $3 to 7 trillion over 10 years, according to the nonpartisan Committee for a Responsible Federal Budget . The proposed 60% cut in the corporate tax rate alone would lose $2.4 trillion over 10 years. Such massive cuts to revenues could have substantial impact on all human services funding, including services and supports for people with IDD.

House and Senate leadership have consistently required that legislation be “paid for” in order to move through the legislative process and the President’s plan does not include viable pay-fors, therefore creating a major conflict if there is any interest in moving it forward. The Arc will remain vigilant in monitoring the impact of the plan if it begins to move legislatively.

For additional resources on federal taxes and the President’s plan see: