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Congress is actively debating whether to retain President Bush's 2001 and 2003 tax cuts for the wealthy that are due to expire at the end of this year. President Obama supports extending tax cuts for households with
incomes under $250,000, but ending the tax breaks for higher income
households.
Here are five good reasons for Congress to let them go.
Congress is actively debating whether to retain President Bush's 2001 and 2003 tax cuts for the wealthy that are due to expire at the end of this year. President Obama supports extending tax cuts for households with
incomes under $250,000, but ending the tax breaks for higher income
households.
Here are five good reasons for Congress to let them go.
1. Borrowing to Give the Rich Tax Breaks is a Really Bad Idea.
We've already borrowed $700 billion since 2001 to pay for these tax
cuts. Maintaining them for another decade would cost an estimated $700
billion, plus interest on the national debt estimated at $126 billion.
Does it really make sense to send interest payments to China and
millionaire bond-holders in the U.S. - so that we can cut taxes for U.S.
millionaires and billionaires?
2. There are 700 Billion Better Ways to Use the Money.
Consider the superior ways to spend $700 billion. We could use a
portion to reduce budget deficits. We could make long overdue
investments in infrastructure such as bridges, roadways, railroads,
water treatment facilities, retrofitting buildings -things that make our
economy strong and competitive. We could direct funds to make the
transition to the new economy that is less dependent on foreign oil. In
the short-term, all these investments would create millions of jobs.
In the long term, it would put the economy on better footing for the
future. There are a billion better ways to use the money.
3. Restores Balance to Tax Code. Over the last half century, Congress has steadily reduced tax obligations for the very rich and global corporations.
Between 1960 and 2004, the top 0.1 percent of U.S. taxpayers -the
wealthiest one in one thousand -have seen the share of their income paid
in total federal taxes drop from 60 to 33.6 percent. Restoring the tax
rates to pre-2001 levels would be a very slight increase, yet begin the
process of rebalancing the tax code.
4. It Won't Hurt the Economy. You've heard the blather about how taxing the rich is going to hurt
the economy. But cutting the taxes for the wealthy are an ineffective
way to help the economy. A recent analysis by the Congressional Budget
Service ranked 11 strategies to spur the economy and create jobs.
Cutting taxes for the rich was the worst ranked strategy. Here' the
reality: Taxing the rich is different than taxing the middle class. The rich save more of their tax cuts while working people and middle class spend it in the economy. Over
the last decade, the top wealth holders have shifted trillions of
dollars into speculative investments that have hurt the economy.
5. Reduces the Dangerous Concentration of Wealth and Power. We're living in a period of unprecedented economic inequality. A recent series in the online journal Slate examined the "Growing Divergence" of wealth and income. Taxes is one of the ways we reduce these inequalities.
A final reason is that the U.S. public supports letting these tax cuts for the rich expire. A recent Gallup Poll reveals that 57 percent
of the population support letting the tax cuts for the rich expire
-while 37 percent support extending them. Polls rarely reveal support
for any form of taxation -which indicates that a majority of Americans
-including those who will pay the hire taxes - recognize the imprudence
of extending them. Alan Greenspan, who supported the tax cuts in 2001,
has now reversed his position and believes the time has come to raise
taxes.
Take action: Organizations such as Wealth for the Common Good and Americans for Responsible Taxes are working to build public support for letting the tax cuts expire.
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Chuck Collins is a senior scholar at the Institute for Policy Studies where he co-edits Inequality.org. His near future novel "Altar to An Erupting Sun” explores one community’s response to climate disruption. He is author of numerous books and reports on inequality and the racial wealth divide, including “The Wealth Hoarders: How Billionaires Spend Millions to Hide Trillions,” “Born on Third Base,” and, with Bill Gates Sr., of “Wealth and Our Commonwealth: Why American Should Tax Accumulated Fortunes.” See more of his writing at www.chuckcollinswrites.com
Congress is actively debating whether to retain President Bush's 2001 and 2003 tax cuts for the wealthy that are due to expire at the end of this year. President Obama supports extending tax cuts for households with
incomes under $250,000, but ending the tax breaks for higher income
households.
Here are five good reasons for Congress to let them go.
1. Borrowing to Give the Rich Tax Breaks is a Really Bad Idea.
We've already borrowed $700 billion since 2001 to pay for these tax
cuts. Maintaining them for another decade would cost an estimated $700
billion, plus interest on the national debt estimated at $126 billion.
Does it really make sense to send interest payments to China and
millionaire bond-holders in the U.S. - so that we can cut taxes for U.S.
millionaires and billionaires?
2. There are 700 Billion Better Ways to Use the Money.
Consider the superior ways to spend $700 billion. We could use a
portion to reduce budget deficits. We could make long overdue
investments in infrastructure such as bridges, roadways, railroads,
water treatment facilities, retrofitting buildings -things that make our
economy strong and competitive. We could direct funds to make the
transition to the new economy that is less dependent on foreign oil. In
the short-term, all these investments would create millions of jobs.
In the long term, it would put the economy on better footing for the
future. There are a billion better ways to use the money.
3. Restores Balance to Tax Code. Over the last half century, Congress has steadily reduced tax obligations for the very rich and global corporations.
Between 1960 and 2004, the top 0.1 percent of U.S. taxpayers -the
wealthiest one in one thousand -have seen the share of their income paid
in total federal taxes drop from 60 to 33.6 percent. Restoring the tax
rates to pre-2001 levels would be a very slight increase, yet begin the
process of rebalancing the tax code.
4. It Won't Hurt the Economy. You've heard the blather about how taxing the rich is going to hurt
the economy. But cutting the taxes for the wealthy are an ineffective
way to help the economy. A recent analysis by the Congressional Budget
Service ranked 11 strategies to spur the economy and create jobs.
Cutting taxes for the rich was the worst ranked strategy. Here' the
reality: Taxing the rich is different than taxing the middle class. The rich save more of their tax cuts while working people and middle class spend it in the economy. Over
the last decade, the top wealth holders have shifted trillions of
dollars into speculative investments that have hurt the economy.
5. Reduces the Dangerous Concentration of Wealth and Power. We're living in a period of unprecedented economic inequality. A recent series in the online journal Slate examined the "Growing Divergence" of wealth and income. Taxes is one of the ways we reduce these inequalities.
A final reason is that the U.S. public supports letting these tax cuts for the rich expire. A recent Gallup Poll reveals that 57 percent
of the population support letting the tax cuts for the rich expire
-while 37 percent support extending them. Polls rarely reveal support
for any form of taxation -which indicates that a majority of Americans
-including those who will pay the hire taxes - recognize the imprudence
of extending them. Alan Greenspan, who supported the tax cuts in 2001,
has now reversed his position and believes the time has come to raise
taxes.
Take action: Organizations such as Wealth for the Common Good and Americans for Responsible Taxes are working to build public support for letting the tax cuts expire.
Chuck Collins is a senior scholar at the Institute for Policy Studies where he co-edits Inequality.org. His near future novel "Altar to An Erupting Sun” explores one community’s response to climate disruption. He is author of numerous books and reports on inequality and the racial wealth divide, including “The Wealth Hoarders: How Billionaires Spend Millions to Hide Trillions,” “Born on Third Base,” and, with Bill Gates Sr., of “Wealth and Our Commonwealth: Why American Should Tax Accumulated Fortunes.” See more of his writing at www.chuckcollinswrites.com
Congress is actively debating whether to retain President Bush's 2001 and 2003 tax cuts for the wealthy that are due to expire at the end of this year. President Obama supports extending tax cuts for households with
incomes under $250,000, but ending the tax breaks for higher income
households.
Here are five good reasons for Congress to let them go.
1. Borrowing to Give the Rich Tax Breaks is a Really Bad Idea.
We've already borrowed $700 billion since 2001 to pay for these tax
cuts. Maintaining them for another decade would cost an estimated $700
billion, plus interest on the national debt estimated at $126 billion.
Does it really make sense to send interest payments to China and
millionaire bond-holders in the U.S. - so that we can cut taxes for U.S.
millionaires and billionaires?
2. There are 700 Billion Better Ways to Use the Money.
Consider the superior ways to spend $700 billion. We could use a
portion to reduce budget deficits. We could make long overdue
investments in infrastructure such as bridges, roadways, railroads,
water treatment facilities, retrofitting buildings -things that make our
economy strong and competitive. We could direct funds to make the
transition to the new economy that is less dependent on foreign oil. In
the short-term, all these investments would create millions of jobs.
In the long term, it would put the economy on better footing for the
future. There are a billion better ways to use the money.
3. Restores Balance to Tax Code. Over the last half century, Congress has steadily reduced tax obligations for the very rich and global corporations.
Between 1960 and 2004, the top 0.1 percent of U.S. taxpayers -the
wealthiest one in one thousand -have seen the share of their income paid
in total federal taxes drop from 60 to 33.6 percent. Restoring the tax
rates to pre-2001 levels would be a very slight increase, yet begin the
process of rebalancing the tax code.
4. It Won't Hurt the Economy. You've heard the blather about how taxing the rich is going to hurt
the economy. But cutting the taxes for the wealthy are an ineffective
way to help the economy. A recent analysis by the Congressional Budget
Service ranked 11 strategies to spur the economy and create jobs.
Cutting taxes for the rich was the worst ranked strategy. Here' the
reality: Taxing the rich is different than taxing the middle class. The rich save more of their tax cuts while working people and middle class spend it in the economy. Over
the last decade, the top wealth holders have shifted trillions of
dollars into speculative investments that have hurt the economy.
5. Reduces the Dangerous Concentration of Wealth and Power. We're living in a period of unprecedented economic inequality. A recent series in the online journal Slate examined the "Growing Divergence" of wealth and income. Taxes is one of the ways we reduce these inequalities.
A final reason is that the U.S. public supports letting these tax cuts for the rich expire. A recent Gallup Poll reveals that 57 percent
of the population support letting the tax cuts for the rich expire
-while 37 percent support extending them. Polls rarely reveal support
for any form of taxation -which indicates that a majority of Americans
-including those who will pay the hire taxes - recognize the imprudence
of extending them. Alan Greenspan, who supported the tax cuts in 2001,
has now reversed his position and believes the time has come to raise
taxes.
Take action: Organizations such as Wealth for the Common Good and Americans for Responsible Taxes are working to build public support for letting the tax cuts expire.