Category: Take Action

The wealthy don’t need more breaks.

Posted on by Alex Welch

A new report shows that the richest 1% now own 40% of this country’s wealth. That’s an astounding figure. The wealth gap has been widening for decades and it has now hit an all-time high.

In this Washington Post article, the author compares the wealth distribution that most Americans would choose, compared to the reality. The contrast is striking. When surveyed, Americans said they would be comfortable with the wealthiest 20% getting nearly one-third of the wealth. In reality, that group of wealthy Americans holds 90% of the wealth.

True tax reform would address this underlying problem, not make it worse. The GOP leaders rushing to pass the current tax bill are unfortunately doing the latter. This tax bill represents the greatest redistribution of wealth to the already wealthy in history. If passed, it will make the wealth gap much worse. And working families are the ones that will suffer.

Senate Tax Plan: Raises Taxes on Working Families and Cuts Taxes on Richest 1%

Posted on by Alex Welch

An analysis of the tax plan circulating the Senate for an upcoming vote shows that it would raise taxes on at least 29 percent of Americans and cause the populations of 19 states to pay more in federal taxes in 2027 than they do today. The lowest-earning three-fifths of Americans would pay more on average in federal taxes, while the top 40 percent on average would receive a tax cut. The bill would increase the deficit because of the substantial tax breaks it would provide to the wealthy and to foreign investors who own stocks in American corporations and who would therefore benefit from the bill’s corporate tax cuts.

The claims that this plan is designed to support low- and middle-income families are patently false.

Click here to download this graphic 

Nationally, the facts are clear.

 

  • This is not a Middle Class tax plan. The richest 5 percent of taxpayers collectively get 50% of the tax cuts in 2019; in 2027 the top 1% will get back $9,090 on average in tax cuts; more than six times the average amount everyone else will get combined.
  • One in 3 taxpayers face a tax increase in 2027. In 2019 28.8 million taxpayers will pay more in taxes or see no difference; that number grows exponentially by 2027, when 29% of taxpayers will face a tax hike. By 2027, 61 million people will pay more or the same in taxes (50 million will pay more). The bottom three income brackets receive a net INCREASE in taxes by 2027, while the top 1% continues to receive an average tax cut of $9,090.
  • People in 19 states will see their federal taxes rise by 2027. The states with the biggest net increase are Florida, North Carolina, Louisiana, Idaho and Maine.
  • Foreign investors get a bigger share in this tax plan than U.S. taxpayers. In 2027, $22 billion of the tax cuts go to foreign investors; compared to the $8 billion in net benefit to all U.S. taxpayers.
  • The tax provision (AMT) that cost Donald Trump $31 million in 2005 is gone through 2025. This means the super-wealthy will be more likely to be able to use loopholes to avoid paying taxes altogether.
  • The plan reduces revenue by almost 1.5 trillion which will either grow the deficit or force significant spending cuts to vital investments like education, health care, science research, job training and infrastructure.
  • Tax cuts for individuals expire after 2025, corporate tax cuts are permanent. This change explains why wealthy investors and the top 1 percent would still reap immense benefit from the tax cuts after 2025.

Interested in state-specific graphics? Click below to download the animation above with state-specific numbers in:

Alaska, where:

Millionaires win big. 97% of Alaskans with average incomes of $1.15 million win will get back $4,070 on average in 2027. Working families get INCREASES. On average, people in the bottom 60%, with household incomes of $31,300 on average, will just see their annual taxes RISE by $240 on average. In total, 147,200 Alaskans will see their taxes rise in 2027. Meanwhile, foreign investors will continue to get huge breaks from this plan — $22 billion in U.S. taxpayer money in 2027.

Arizona, where: 

1.2 million Arizonians will see their taxes rise in 2027. Meanwhile, foreign investors will continue to get huge breaks from this plan — $22 billion in U.S. taxpayer money in 2027. Working families will pay more. On average, the bottom 60% of income earners will see their tax bills rise by 2027 on average $150. Millionaires get huge tax cuts, at the cost of working families. 92% of the top 1%, with average incomes of $1.9 million/year receive tax cuts of $5,000 on average in 2027.

Kentucky, where:

Taxes will rise for nearly one-in-four — or half a million — households in 2027 (24%). More than half a million taxpayers (544,900) will pay on average $110 MORE in taxes under the Senate GOP plan in 2027. Meanwhile, 98% of the richest 1% will see their taxes drop by an average of $4,790. Collectively, Kentuckians will pay $105,100,000 MORE in federal taxes under this plan.

Maine, where:

Mainers will pay more in taxes. On average, the bottom 60% of income earners will see their tax bills rise $120 in 2027. More than 1 in 4 (28%) taxpayers in Maine will pay more in 2027 under the Senate GOP tax plan. That’s nearly a quarter of a million people — 205,000. Millionaires win big. Meanwhile, 97% of the people in the top 1%, with average household incomes of $1.75 million will get on average $4,740.

Tennessee, where:

Working families in Tennessee will pay more overall in taxes — on average the bottom 60% of income earners will see their taxes rise on average $110 in 2027. Overall, 1.1 million Tennesseans will see their taxes rise on average $110 in 2027. Meanwhile, 91% of the richest 1% will get tax cuts of $6,030 in 2027.

 

It’s time to take action. Please take two minutes to contact your representatives and ask them to vote NO on the tax bill. And then, please take time to spread the word.

The Great Tax Heist

Posted on by Alex Welch

The Senate just passed (by two votes) a budget that clears the way for $6 trillion in cuts from critical services and $1.5 trillion in tax cuts. Their arguments for the tax plan they have proposed center around one core argument: That lowering the corporate tax rate will somehow benefit working families. This has been proven by independent analyses and history to be patently FALSE. We call the whole thing magic math. This video breaks it down.

The tax plan they are proposing is a massive giveaway for corporations and the wealthiest 1%, paid for by working and middle class families. But that’s not what you’ll hear Trump and GOP leaders say publicly. Their public spin centers around what we like to call MAGIC MATH. This concept (that somehow cutting the corporate tax rate will give working people better jobs) has been proven by independent analyses (not to mention history) FALSE. And we’re not fooled by their tricks.

This video breaks that “magic math” down. Enjoy!

If this “magic math” makes you you as mad as it does us, won’t you consider spending a few minutes to call Congress and let them know you aren’t fooled by their tricks?

The Top Three Reasons You Should Call Congress TODAY!

Posted on by Alex Welch

The Top Three Reasons You Should Call Congress TODAY!

In advance of the Congressional budget resolution vote on October 5, ITEP releases report showing the richest would win big.

As Congress readies for a vote October 5 on the budget resolution, the independent research institute ITEP released a comprehensive report detailing the impacts of the “tax reform framework” released recently by President Trump and GOP leaders in Congress. The numbers tell a very different story than what proponents of the framework have been saying.

It’s time to tell Congress we aren’t interested in tax cuts to the rich. Please call them today to let them know why this matters to you.

And if you need more reasons why you need to pick up the phone, here are our top three:

Number One: The richest 1 percent get the majority of the tax breaks, while 1 in 6 taxpayers will actually see their tax bills GO UP.

The ITEP report shows clearly that in every state the wealthiest 1 percent of individuals are the ones who make the most money off this plan. On average in 2018, they’ll get $90,610 extra in their pockets. Meanwhile, one in six taxpayers would see their tax bills rise. And the poorest 20 percent will get just $80 on average back on their 2018 taxes under this plan.

Number Two: Essential services will be put at risk

Overall this tax plan will lose $233 billion in revenue in 2018 alone for the government, putting at risk essential social services such as Medicare, Medicaid, Social Security and education (Source: ITEP)

Number Three: Some states will lose BIG.

And in some states there are some big losers for this tax plan — especially in the middle class. In nine states and the District of Columbia, over 20 percent of taxpayers would face an immediate tax increase. Those states include Maryland (30.5 percent), New Jersey (26.4 percent), Connecticut (24.3 percent), California (22.8 percent), Virginia (22.4 percent), Utah (22.2 percent), New York (22.1 percent), Massachusetts (20.5 percent), and Georgia (20.5 percent). Yet in each of those states the richest 1% will see huge tax CUTS.

 

We hope these are enough reasons for you to pick up the phone and call your representatives in Congress. It just takes a few minutes, and we have an easy tool you can use to quickly get connected to the right people.

And if you want more reasons, check out the full ITEP report here.