202-224-4515, Katie Niederee and Julia Lawless
The Senate Tax Overhaul Will Help #Millennials, Future Generations
Young Adults Hurt by Sluggish Economy Will Benefit from Senate Tax Plan
Young people have been hit particularly hard by eight years with recession followed by a weak recovery and persistent sluggishness and economic stagnation. Unemployment among millennials has been stubbornly high, they are increasingly saddled with student debt and their wages have stagnated. Our current tax code is only making matters worse for this generation. Fortunately, the Senate plan to overhaul the nation’s tax code will make it easier for young people to get ahead, start new businesses, save for the future, and take life’s next step. Here’s how:
Millennials feel financially insecure – the Senate tax plan will create better jobs and grow wages:
- Just 6 percent of millennials feel they are making significantly more money than they need to cover their basic needs and 63 percent of millennials have said they would have a hard time covering an unexpected $500 expense.
- The Senate tax plan would get America’s economy moving again, leading to more jobs and higher wages. One hundred thirty-seven economists wrote to Congress that if business tax reforms are enacted, it will lead to increased investment at home, translating to more economic growth, higher wages and more jobs. Under the Senate plan, young people can expect bigger paychecks to help them save for the unexpected and invest in their future.
- The Senate tax plan also lowers tax rates across the board, nearly doubles the standard deduction, and doubles the child tax credit. These reforms will boost millennials’ take home pay, putting more money directly in their pockets.
Millennials want to be entrepreneurs – the Senate tax plan will make it easier to start a business:
- Millennials want to start businesses, but have been held back by a stagnant economy. A recent study found that 42 percent of millennials said they didn’t have the financial means to start a business.
- The Senate tax reform plan will help millennials start and grow businesses by creating a simple, easy-to-administer tax deduction for pass-through businesses, allowing full and immediate expensing, and making a number of other much needed reforms. Additionally, the plan will spur economic growth, which will improve the business environment for young entrepreneurs.
Higher education has never been more important, but rising costs have left millennials with increasing student loan debt – the Senate tax plan maintains important student provisions:
- The gap between college and non-college graduates is growing increasingly wider, but median earnings for millennial college grads are lower than past generations and costs of higher education are ballooning. As a result, millennials are saddled with a significant amount of student debt. Fifty-nine percent of millennials worry about repaying their student loans.
- The Senate tax reform plan maintains important provisions to students. Under the plan, student debt will remain deductible and graduate student tuition waivers are retained. The Senate tax plan will also lead to more job opportunities for recent graduates about to enter the workforce.
Bottom line: Young people have been hurting from years of a weak economy. Tax reform will reinvigorate the economy, boost take home pay, and make it easier to start a business, while recognizing the important role of higher education and families in their formative stages. Under the Senate plan, millennials will win big.
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