August, 01 2019, 12:00am EDT
For Immediate Release
Contact:
De Blasio Proposes Major Tax Plan to Address Income Inequality, Restore Fairness
NYC Mayor Joins Democratic Candidates Pushing Back Against Trump-GOP Tax Cuts for Wealthy
WASHINGTON
Addressing the growing problem of income inequality in America, Democratic presidential candidate Mayor Bill de Blasio yesterday proposed a major plan to overhaul the nation's tax system that requires a lot more from the wealthy and corporations.
While nearly all the Democratic candidates have proposed various tax and revenue increases to pay for critical needs (as catalogued on the ATF Action Fund website), de Blasio's plan goes further by targeting a broad array of loopholes and inequities in the tax code that give preferential treatment to the wealthy and big corporations.
Although it's unclear how much revenue de Blasio's plan would raise, it cites estimates showing it could raise about $10 trillion over 10 years.
"Mayor de Blasio's progressive tax-reform plan is a recognition not only that the Trump-GOP tax cuts for the wealthy are unfair and aren't working, but also that raising taxes on the wealthy and big corporations is good for the economy," said Frank Clemente, executive director of Americans for Tax Fairness Action Fund. "We have numerous critical needs, from infrastructure to education, to health care and climate change. It will cost trillions of dollars to address these needs, which will actually strengthen the economy and put more people to work. But the only way to do that is to raise substantial revenue by replacing the rigged system we have now with fair and progressive taxes."
Clemente emphasized that ATF Action Fund does not endorse political candidates. "But it's encouraging to see candidates like de Blasio and others move the issues of tax fairness and income inequality to the forefront of the 2020 campaign for president where it belongs," he said.
Included in de Blasio's tax plan are proposals to:
- Tax Extreme Wealth: Impose a 1% tax on households with wealth between $10 million and $25 million, a 2% tax on assets between $25 million and $100 million, and a 3% tax on assets in excess of $100 million.
- Tax Wealth Like Work: De Blasio's plan would tax capital gains (income derived from the sale of stocks, bonds and other investments) the same as ordinary income - wages and salaries for wealthier taxpayers. Currently, capital gains are taxed at a much lower rate than workers' paychecks - 20% (or 23.8% for a married couple making more than $250,000 a year) vs. 37%, the top tax rate on wages and salaries.
- Increase the Top Marginal Tax Rate and Create Two New Brackets for the Very Wealthy: The plan would increase the top marginal tax rate to 40%, from the current 37%, for individuals with income up to $1 million, and add two new tax brackets and tax rates - a 50% rate on income between $1-$2 million and a 60% rate on income above $2 million. The latter rate would effectively be 70% after adding in state and local taxes.
- Restore the Corporate Tax Rate to 35%: De Blasio's plan would restore the corporate tax rate to 35%, which was reduced to 21% under the Trump-GOP tax cuts, and reinstate a "strong" "Alternative Minimum Tax" to prevent profitable corporations from avoiding a tax liability. He would also equalize the tax rate between domestic and foreign profits to reduce incentives for corporations to shift profits offshore and outsource jobs.
- Financial Transaction Tax: De Blasio would establish a Wall Street sales tax of 0.2% on stock, bond and derivatives trades, which would also help curb market volatility.
Some elements of de Blasio's plan are similar to proposals by Senators Elizabeth Warren, Bernie Sanders and Rep. Seth Moulton (D-MA), who released a tax plan that he estimates would raise nearly $3 trillion.
Some of de Blasio's tax proposals reflect options included in a report by Americans for Tax Fairness titled Tax Fairness Now: Revenue Options for a Fair Tax System released in April.
"Democrats are making tax fairness and income inequality key issues in the 2020 campaign," said Clemente. "That will give voters a stark choice between President Trump and Republicans, who support tax giveaways to the wealthy and big corporations, and the public, which polls show support a tax system that's fair to everyone, not just the wealthy and powerful."
Americans for Tax Fairness (ATF) is a diverse campaign of more than 425 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
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Climate campaigners scoffed Saturday at a 22-nation pledge to triple nuclear power capacity by mid-century as a way to ward off the increasing damage of warming temperatures, with opponents calling it a costly and "dangerous" distraction from the urgent need for a fossil fuel phaseout alongside a rapid increase in more affordable and scaleable renewable sources such as wind and solar.
The Declaration to Triple Nuclear Energy—backed by the United States, Canada, France, the Czech Republic, and others—was announced as part of the Climate Action Summit taking place in Dubai as a part of the two-week U.N. climate talks known as COP28.
While the document claims a "key role" for nuclear energy to keep "a 1.5°C limit on temperature rise within reach" by 2050 and to help attain the so-called "net-zero emissions" goal that governments and the fossil fuel industry deploy to justify the continued burning of coal, oil, and gas, critics say the false solution of atomic power actually harms the effort to reduce emissions by wasting precious time and money that could be spent better and faster elsewhere.
"There is no space for dangerous nuclear power to accelerate the decarbonization needed to achieve the Paris climate goal," said Masayoshi Iyoda, a 350.org campaigner in Japan who cited the 2011 Fukushima disaster as evidence of the inherent dangers of nuclear power.
"There is no space for dangerous nuclear power to accelerate the decarbonization needed to achieve the Paris climate goal."
Nuclear energy, said Iyoda, "is nothing more than a dangerous distraction. The attempt of a 'nuclear renaissance' led by nuclear industries' lobbyists since the 2000s has never been successful—it is simply too costly, too risky, too undemocratic, and too time-consuming. We already have cheaper, safer, democratic, and faster solutions to the climate crisis, and they are renewable energy and energy efficiency."
When word of the multi-nation pledge emerged last month, Mark Jacobson, professor of civil and environmental engineering at Stanford University and co-founder of The Solutions Project which offers a roadmap for 100% renewable energy that excludes nuclear energy, called the proposal the "stupidest policy proposal I've ever seen."
Jacobson said the plan to boost nuclear capacity in a manner to avert the worst impacts of the climate crisis "will never happen no matter how many goals are set" and added that President Joe Biden was getting "bad advice in the White House" for supporting it.
In comments from Dubai, U.S. climate envoy John Kerry said that while he agrees nuclear will be a "sweeping alternative to every other energy source," but claimed that "science and the reality of facts" shows the world cannot "get to net-zero by 2050 with some nuclear."
Numerous studies and blueprints towards a renewable energy future, however, have shown this is not established fact, but rather the position taken by both the nuclear power industry itself and those who would otherwise like to slow the transition to a truly renewable energy system.
Pauline Boyer, energy transition campaign manager with Greenpeace France, said the scientific evidence is clear and it is not in favor of a surge in nuclear power.
"If we wish to maintain a chance of a trajectory of 1.5°C, we must massively reduce greenhouse gas emissions over the coming years, but nuclear power is too slow to deploy in the face of the climate emergency," she said.
"The announcement of a tripling of capacities is disconnected from reality," Boyer continued. Citing delays and soaring costs, she said the nuclear industry "is losing ground in the global energy mix every day" in favor of renewable energy options that are cheaper, quicker to deploy, and more accessible to developing countries.
In 2016, researchers at the University of Sussex and the Vienna School of International Studies showed that "entrenched commitments to nuclear power" were likely "counterproductive" towards achieving renewable energy targets, especially as "better ways to meet climate goals"—namely solar, wind, geothermal, and hydropower–were suppressed.
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Writing on the subject in 2019, Harvard University professor Naomi Orseskes and renowned author and psychohistorian Robert Jay Lifton observed how advocates of nuclear power declare the technology "clean, efficient, economical, and safe" while in reality "it is none of these. It is expensive and poses grave dangers to our physical and psychological well-being."
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Hundreds of civil society groups and frontline voices from around the world on Saturday condemned a voluntary pledge heralded by government leaders and fossil fuel giants, calling the "Oil and Gas Decarbonization Charter" unveiled at the COP28 climate talks in Dubai nothing but a cynical industry-backed smokescreen and greenwashing ploy that will allow for the continuation of massive emissions of carbon, methane, and other greenhouse gases.
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"Voluntary commitments are a dangerous distraction from what is needed at COP28. Oil and gas companies meeting to sign a pledge that only deals with their operational emissions is like a group of arsonists meeting to promise to light fires more efficiently."
What's key, say the Charter's critics, is both the voluntary nature of the scheme and the glaring fact that it does not include 80-90% of the emissions produced by the industry, namely the downstream consumption of their products—the burning of coal, oil, and fracked gas.
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"If your company digs stuff up and burns it, you’re the problem. It’s time to wind down your business."
"Bundling up the Oil and Gas Decarbonization Charter with a renewable energy commitment appears to be a calculated move to distract from the weakness of this industry pledge," Tong said.
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