The Republican tax overhaul is dreadful in ways old and new. It will be horrible for millions of families and individuals in 12 Democratic states, including New York and New Jersey, because the tax plan’s cap on deductions of state and local taxes will mean higher federal taxes and less money in their wallets.

These states rely on income and property taxes to invest in their schools, health care and the social safety net. With the federal tax plan’s limits on deductions, this local spending will become less palatable to taxpayers. It’s really a shot across the bow to local governments that are trying to meet the needs of their residents where the federal government fails.

Tucked into the final bill is a gift to U.S. Education Secretary Betsy DeVos: the expansion of a tax-free college savings program to include families who send their children to private K–12 schools or home-school. That expansion will both undermine public school financing and encourage private school attendance.

The mandate to purchase health insurance — a key component of the Affordable Care Act enacted under President Obama — would be eliminated, thereby ensuring that sicker people will pay more for coverage as healthier people opt out with no penalty. Trump’s tax plan makes no mention of funds for the Children’s Health Insurance Program that provides health care to low-income children through Medicaid and other programs. Without federal funds, the program is expected to shut down in many states over the next six months.

One of the most telling details of the Trump tax bill is how it views earned income versus investment income. If you earn $200,000 in a pay check, you’ll be taxed at a much higher rate than someone who makes the same amount as a business owner or investor. Another detail that speaks volumes: The tax breaks for individuals will sunset in 2025, while the tax breaks for corporations are permanent.

Overall, this new tax structure represents a massive shift of wealth from working people — whether they work in kitchens or classrooms — to wealthy corporations and individuals. It’s about shrinking government. And it will not end there.

Because the tax plan blows a huge hole in the federal budget — revenues will decline steeply with all those generous tax cuts —Republican leaders are already talking about the need to cut “entitlements,” meaning Medicare, food stamps and other antipoverty programs.

This is why we need labor unions: to push back against policies that threaten not just our freedoms but our right to earn a decent wage and to help those in need.