Campaign: Restore the Top Tax Rates

We, the undersigned, call on Congress and President Obama to allow the Bush-era tax cuts for those with taxable incomes over $200,000 (individual) and $250,000 (couple) to expire no later than Dec. 31, 2012, as now scheduled, without another extension. The increased revenue, an estimated $700 billion over ten years, should go toward making long overdue investments in education, health, transportation, infrastructure, and green energy systems.

Update: Congress votes to extend high-income tax cuts for 2 years – 12/17/10

Congress voted to extend the Bush-era tax cuts until 2012.

Restoring Top Tax Rates Makes Sense for Small Business

Read the report, The Business Case for Letting the High-End Tax Cuts Expire, by our partners Business for Shared Prosperity and American Sustainable Business Council.

Restore the Top Tax Rates

Revenue potential: $700 billion over 10 years

Those of us with taxable incomes over $200,000 (individuals) or $250,000 (households) would see a minimal tax increase—from 35% to 39.6%, a rate still far lower than the one under President Reagan—but the increased revenue would raise an estimated $700 billion over the next decade. This would affect a very small fraction of U.S. taxpayers—about 2.5 percent.

We call on Congress to immediately restore the top tax rates.

Background

Description: President Obama’s budget includes a proposal to end the 2001 and 2003 Bush tax cuts for households with incomes over $250,000 ($200,000 or more for individuals).  This repeal would have a substantial impact on federal revenues.

 

 

These tax changes would affect only a small fraction of U.S. taxpayers. According to an October 2008 Citizens for Tax Justice analysis, only 2.5 percent of taxpayers fall above the $250,000/$200,000 AGI threshold in 2009.

Increasing taxes on the wealthiest Americans will not harm the economy. Increasing taxes on America’s wealthiest will not reduce consumption. Even with higher tax rates, the wealthy will have the means to maintain their current lifestyles. And raising taxes on wealthy will not result in job losses. Consumer demand, not the tax rate, drives hiring.

For More Information

James Kwak, “Bad Arguments Against Tax ‘Increases,’” Good talking points and answers, Baseline Scenario, September 24, 2010.

Paul Krugman, “Now That’s Rich,” How deficit hawks and other conservatives are fighting for tax cuts for the wealthiest, NY Times, August 23, 2010.

How Changing Tax Cuts Would Affect You/Deficit (Interactive Graphic), The Washington Post, August 18, 2010.

Jack Metzgar, “Who Creates Jobs? Taxes, Spending and Class War,” August 16, 2010.

Robert Frank, “Why Wait to Repeal Tax Cuts for the Rich?” The New York Times, December 7, 2008.

Citizens for Tax Justice, “Only 2.5 percent of Taxpayers Would Lose Some of the Bush Income Tax Cuts under Obama’s Tax Plan in 2009: State-by-State Figures,” October 23, 2008.

Partners

This petition is sponsored by Wealth for the Common Good, in partnership with American Sustainable Business Council, Business for Shared Prosperity, Bolder Giving, Growth & Justice, Inspired Legacies, Resource Generation, and Responsible Wealth.