Friday, April 08, 2005

Light at the End of the Dark Tunnel of Tax-Cut Greed

Rays of hope from Common Dreams today....
Some of America's Richest Say 'No, Thanks' to Bush Tax Cuts by Abid Aslam

Some of America's wealthiest individuals have declined billions of dollars in tax cuts bestowed upon them by President George W. Bush's administration and have urged others among the country's richest and most famous to donate their federal tax cuts to campaigns against the Bush package, often described as ''tax breaks for the rich.''

''It's obscene that Washington is handing out tax breaks to millionaires with one hand and shredding the safety net with the other,'' said Marta Drury, a member of Responsible Wealth, a national network of affluent Americans advocating what they term ''widespread prosperity'' and concerned that a deepening wealth divide in America is undermining the country's social and democratic fabric.

''So I'm calculating my 2004 tax cut and donating it to organizations fighting for responsible, fair, and adequate taxes. I don't believe that people like me with incomes over $200,000 need $69 billion in tax cuts,'' Drury added, referring to the total estimated value of 2004 tax cuts granted Americans in her income bracket.

Responsible Wealth, founded in 1997 and claiming 1,000-plus members, has stood at the forefront of what Time magazine termed the ''billionaire backlash'' against elite tax cuts and Bush's proposal to repeal the estate tax. On Wednesday, members urged others in the ranks of America's rich and famous to join the ''Responsible Tax Pledge'' initiative.

The tax pledge asked members to calculate their 2004 tax breaks and donate these to fair-tax campaigns. For wealthy individuals like Drury, the average estimated tax break in 2004 was $20,000. For several other pledge signatories, it amounted to more than $100,000.

''It's irresponsible to put America deeper into debt to give tax cuts to millionaires,'' the tax pledge stated.

It said it was ''wrong to give tax cuts to the wealthy instead of investing in education, research, job training, affordable housing, a healthy environment, vaccines, and emergency services.''

The pledge called on Congress ''to reject more tax cuts for wealthy Americans, roll back the existing tax cuts for the very wealthy instead of making them permanent, and support responsible, fair, and adequate taxes.''

Taxpayers who made more than $1 million received an average federal income tax break of $123,592 in 2004, according to the Tax Policy Center, a joint project of the Urban Institute and Brookings Institution think tanks. This compared to $383, the average tax break in 2004 for the two-thirds of taxpayers who made less than $50,000 per year.

''The next time a politician says we can't afford to fund something you care about, ask yourself if $69 billion per year would help,'' said Scott Klinger, Responsible Wealth's co-director. ''When you hear that the only choices we have are to cut budgets, increase the deficit or increase your taxes, remember that $69 billion in tax breaks went to people who made more than $200,000 last year.''

Bill Gates Sr., co-chair of the Bill and Melinda Gates Foundation--the largest foundation on Earth--and father of the Microsoft Corp. co-founder, has spearheaded Responsible Wealth's campaign to oppose regressive changes to the tax code and to reform and preserve the estate tax.

The tax is levied against estates of more than $1.5 million where assets are not transferred to a surviving spouse and thus applies to about 2 percent of all inheritance cases, Responsible Wealth said.

Even so, permanently repealing the tax as Bush has proposed would cut federal revenue by $1 trillion over two decades and have the effect of depressing charitable giving by $12-24 billion per year, Responsible Wealth said, citing Congressional Budget Office figures.

The elder Gates for years has argued that individual wealth is a product not only of hard work and smart choices but also of a society that provides economic development, education, health care, and property rights protection. Such an economy's top dogs benefit the most from tax-funded institutions and programs and therefore should not resent or seek relief from having to pay taxes, he has said...."

No comments: