WASHINGTON, DC - After examining the $430 billion tax cut proposed in the Senate, LULAC National President Hector Flores raised concerns about the effects of the tax plan on the Latino community and the working class. “Hispanics are not the beneficiaries of this tax cut. Excluding $500 in dividends from taxes is not going to apply to the vast majority of our community whose median household income is $33,565 per year,” stated Flores. “It doesn’t seem right that the proposed tax cuts would not benefit all taxpayers equally, especially in view of the fact that Hispanic unemployment stands at 7.5 percent, higher than the national average. The country would be better served with an economic stimulus package that focuses on offering incentives for small businesses that would put the bulk of the money back into the hands of the average American. We commend Maine Senator Olympia Snowe for her efforts to make the plan more financially sound, but we are still disappointed with the final outcome.”
LULAC is concerned that the tax cuts will not engender the economic turnaround and job creation that is so critical for the Hispanic community right now. “It makes more sense to create a responsible fiscal policy that would stimulate growth and not more deficits,” said LULAC Executive Director Brent Wilkes. LULAC is particularly concerned about exploding deficits. As the fastest growing population in the country with a large percentage of young people, Hispanics will increasingly bear the burden of paying off the deficit.
“Our children will be paying off this tax cut for many years to come. LULAC does not think this is the time to be engaging in more tax cuts when states are suffering from terrible deficits. Governors across the country feel forced to make painful decisions about programs important to the Latino community in the areas of education and health care at a time when we need better schools and prescription drug coverage for our elderly,” Flores added. “Policymakers should take our communities needs into account as they consider greater tax cuts. Many states are in trouble because of the additional burdens place on them by the federal government in education and health care. It is critical to our families that we not penalize then any further or we will all suffer the consequences for many years to come.”
The League of United Latin American Citizens (LULAC) is the oldest and largest Latino civil rights organization in the United States. LULAC advances the economic condition, educational attainment, political influence, health, and civil rights of Hispanic Americans through community-based programs operating at more than 700 LULAC councils nationwide.