What’s Tax “Reform” Got to Do with Science and Public Well-being?
In the days since the “Big Six” group of Congressional leaders and Trump administration officials unveiled the outlines of their tax “reform” proposal, there’s been a fierce debate—and rightly so—over who stands to win and who lose. Will the average working American get anything significant from this tax plan, or are most of the benefits skewed towards the wealthy and profitable corporations? More on this in a minute.
What’s gotten less attention is the impact of this plan on the public science enterprise and the well-being of all Americans.
An unprecedented assault
Federal government investments in science research and innovation have led to discoveries that have produced major benefits for our health, safety, economic competitiveness, and quality of life. This includes MRI technology, vaccines and new medical treatments, the internet and GPS, earth-monitoring satellites that allow us to predict the path of major hurricanes, clean energy technologies such as LED lighting, advanced wind turbines and photovoltaic cells, and so much more. The work of numerous federal agencies to develop and implement public and worker health and safety protections against exposure to toxic chemicals, air and water pollution, workplace injuries, and many other dangers has also produced real benefits.
These essential programs are already under unprecedented assault. UCS president Ken Kimmell has called President Trump’s proposed FY18 budget “a wrecking ball to science.” Others at UCS have detailed the devastating impacts of Trump’s proposed budget cuts on the Environmental Protection Agency, the Department of Energy, the Department of Agriculture, the Federal Emergency Management Agency, the National Oceanic and Atmospheric Administration, worker health and safety, the Forest Service, and early career scientists.
UCS and our allies are pushing back hard on these proposed budget cuts, and we remain vigilant to ensure that when Congress takes final action on the FY18 appropriations bills in December, these irresponsible cuts will be rejected.
All these programs (along with veterans’ care, homeland security, transportation and other infrastructure, law enforcement, education, and many other core government programs) fall within the non-defense discretionary (or NDD) portion of federal spending, which has been disproportionately targeted for spending cuts over the last decade. As an analysis by Paul Van de Water of the Center for Budget and Policy Priorities points out, “NDD spending in 2017 will be about 13 percent below the comparable 2010 level after adjusting for inflation (nearly $100 billion lower in 2017 dollars).”
Even if the draconian Trump budget cuts are beaten back, the very real need to increase spending on entitlement programs such as Social Security and Medicare, along with a push by many in Congress to maintain (or increase) defense spending, will continue to squeeze NDD expenditures in the years ahead.
Creating long-term pressure on essential programs
Here’s where the Republican tax plan comes in, as it will almost certainly reduce government revenues substantially and add to the national debt. While Treasury Secretary Steven Mnuchin told ABC News that the tax plan would generate higher economic growth rates and “will cut the deficit by $1 trillion,” few independent economists agree with that rosy outlook.
The Committee for a Responsible Federal Budget estimates the plan could increase the deficit by $2.2 trillion over the next decade; CRFB president Maya MacGuineas cautioned that “tax cuts shouldn’t be handed out like Halloween candy,” and said they “certainly don’t pay for themselves.”
Senate Republicans openly acknowledge that the tax plan will increase the…