August 29, 2010
Letter to the editor by Pete Wilmoth, West Virginia Center on Budget & Policy
Recent media coverage of the Bush tax cuts has misrepresented Obama's policies.
Obama wants to renew tax cuts for all but the wealthiest 1 percent of West Virginians, those with incomes of more than $250,000. Eighty-nine percent of full-time workers in the state earn less than $75,000. The median household income is under $38,000.
According to Citizens for Tax Justice, if all of Bush's cuts are made permanent, the bottom 60 percent of West Virginians will pay $117 more, while the richest 1 percent pays $18,069 less than Obama's alternative.
Increasing taxes for most of West Virginia while trimming taxes for a select, wealthy few is ineffective economic policy, since the working class is likely to spend their tax cuts immediately, while the wealthiest 1 percent is more likely to save.
Renewing the Bush tax cuts for the rich will increase the national debt by $1 trillion over the next 10 years, according to the national Center on Budget and Policy Priorities. A temporary jobs credit that reduces payroll taxes for new hires, increased state fiscal assistance, and unemployment benefits all provide greater economic "bang" for the taxpayer "buck," according to the nonpartisan Congressional Budget Office.
Obama's plan would create nearly $90 billion in revenue over the next two years that, if invested in unemployment benefits, would yield five times the economic stimulus of renewing Bush's tax cuts for the wealthy.
West Virginia needs tax policies that promote economic growth by looking out for working class people.
Pete Wilmoth
Research Associate
West Virginia Center on Budget & Policy
Charleston , West Virginia