Trump Policies Hurt Our Nation’s Cities
January 24, 2018
As Trump met with mayors today, here’s a look at some of the many ways his policies are hurting cities across the country:
Trump’s Department of Justice threatened to withhold federal funding to nearly two dozen cities.
NBC News: “The Justice Department told 23 local governments Wednesday that they must prove they are abiding by an immigration law if they want to continue receiving money under a federal crime-fighting program, turning up the heat over the issue known as sanctuary cities.”
The Hill: “In an interview with Fox News' Neil Cavuto, ICE Acting Director Thomas Homan said the Department of Justice needs ‘to file charges against the sanctuary cities’ and ‘hold back their funding.’ Homan, who was announced in December as President Trump's pick to permanently run the agency, went on to say that politicians enforcing sanctuary city policies need to be held ‘personally accountable.’ ‘We gotta take [sanctuary cities] to court, and we gotta start charging some of these politicians with crimes,’ he said.”
The Trump tax could force local governments to raise taxes or cut vital services.
Wall Street Journal: “States Grapple With Federal Tax Cut That May Raise State Taxes”
Associated Press: “Why GOP Tax Plan Could Mean Cuts In State And Local Services”
Marketplace: “A report from Moody’s Analytics predicts that because deductions on property taxes and mortgage interest have been limited, housing prices in Manhattan could drop nearly 10 percent next year. That also will hit property tax revenue and related income streams… In response, governments will have to cut services or raise taxes.”
The Trump tax took power away from local governments by making it more difficult for them to raise revenues.
Washington Post: “The Republican Tax Bill Will Make It Harder For States And Cities To Pay Their Bills.”
United States Conference of Mayors: “‘The bill being sent to President Trump’s desk is a full-fledged assault on cities and the families who live in them. Mayors raised their voices to protect essential tools for cities like the Low Income Housing Tax Credit and the Historic Tax Credit, while averting a full elimination of the State and Local Tax (SALT) deduction. There’s no mistaking, however, that this bill will make our cities harder to live in and harder to run effectively – all for the benefit of wealthy political donors.”
Trump’s draft infrastructure plan would place most financial responsibility onto state and local taxpayers.
Bloomberg: “Trump's Draft Public Works Plan Asks Cities, States To Pony Up”
Reuters: “The Trump administration is finalizing its long-awaited infrastructure plan, which would push most of the financing of projects to private investment and state and local taxpayers, according to sources familiar with the proposal taking shape.”
The Trump tax could actually make infrastructure financing more expensive for states and local governments.
Brookings: “Big picture: The tax cuts will make infrastructure financing more expensive for states and local governments and increase the costs to local voters of funding infrastructure through property taxes.”
The Hill: “Another proposal included in the leaked memo is the expansion of private activity bonds, a common tool used to finance infrastructure projects. The draft suggests allowing entities to issue advance refunding bonds to refinance private activity bonds. But including this in an infrastructure plan would put the package at odds with the recent GOP overhaul of the tax code, which repealed the tax exemption for new advance refunding bonds. The House tax bill proposed eliminating private activity bonds, but the final bill retained the financing tool.”