Greens: Hawkins for Senate Opposes $70 Billion Tax Cut for the Rich

Howie Hawkins, who is seeking the Green Party nomination for US Senate, called on Congress to reject the proposed $70 billion tax cut that will primarily benefit wealthy Americans. The cuts have already been approved by the House and a Senate vote is expected shortly. “The agreement will provide an average annual tax cut of just $20 to Americans in the middle of the income spectrum, while showering tax cuts that average $42,000 on people who make more than $1 million a year. The Greens are opposed to the Robin-hood-in-reverse policies of our two major parties,” stated Hawkins.

Hawkins for Senate
Media Release

For More Information: Howie Hawkins 315-425-1019, hhawkins@igc.org

Hawkins Calls on Senate to Reject $70 Billion Tax Cuts for the Rich

Calls for Increase in Top Tax Rate, Corporate Alternate Minimum Tax

(Syracuse) Howie Hawkins, who is seeking the Green Party nomination for US Senate, called on Congress to reject the proposed $70 billion tax cut that will primarily benefit wealthy Americans. The cuts have already been approved by the House and a Senate vote is expected shortly.

“The agreement will provide an average annual tax cut of just $20 to Americans in the middle of the income spectrum, while showering tax cuts that average $42,000 on people who make more than $1 million a year. The Greens are opposed to the Robin-hood-in-reverse policies of our two major parties,” stated Hawkins.

The tax cuts for the rich come on the heels of the February vote by Congress to cut $39 billion in student loans, Medicaid, education, and child support. Congress also plans to enact a second round of tax cuts in the near future; for public relations purpose, they decided to cap the first round at $70 billion.

“The way to stimulate our economy is not yet more tax cuts for the rich but slashing our military spending, starting with bringing our troops home from Iraq. A peace dividend of hundreds of billions of dollars should be used to create jobs here at home through investment in renewable energy and conservation, affordable housing, education and environmental protection,” stated Hawkins. “We need to ensure that the rich pay their fair share of taxes by closing all these special interest loopholes and raising the tax rate on the highest incomes.”

Hawkins added that “taxes on wages should be lower – not higher – than taxes on income from wealth. Congress has gone in the opposite direction.”

The tax rates for dividends and capital gains are now 5% for taxpayers in the 10% and 15% tax brackets, and 15% for those in higher brackets. Congress has already approved reducing those rates to zero in 2008 for taxpayers in the 10% and 15% brackets. While those rates are scheduled to lapse in 2009, with dividends and capital gains scheduled to be taxed at the same rate as wages, the new bill would extend the 2008 rates through 2010. This represents a giveaway to the rich of $21 billion over five years and $51 billion over 10, ultimately shifting more of the tax burden onto working families..

The measure's second-most costly provision — $34 billion in 2006 and 2007 alone — would provide relief to the increasing millions of taxpayers who would otherwise be subject to the alternative minimum tax. The alternate minimum tax is designed to ensure that all taxpayers pay at least some taxes; many wealthy taxpayers are able to use Congress’ numerous tax loopholes to otherwise escape all tax liability.

Hawkins charged that the tax bill would increase federal budget deficits in violation of existing Congressional rules. Hawkins cited a report by the Center for Budget and Policy Priorities that shows that the agreement depends on budget gimmicks to create the appearance that it complies with a key rule that bars reconciliation bills from increasing long-term deficits. The agreement moves corporate tax payments between years to mask revenue losses that occur after 2010. Most troubling, the bill includes a substantial tax cut for affluent households disguised as an offset. This provision, which would allow high-income individuals to convert regular IRAs to Roth IRAs, would raise revenue initially but lose larger amounts of revenue in later years.