FOR IMMEDIATE RELEASE
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Report Shows Impact to Michigan Residents of Extending Bush Tax Cuts for Richest 2% of Americans
Wealthy Few Would Reap Huge Tax Breaks at Expense of Other Michigan Residents
(Lansing, Mich. – Aug. 1, 2012) If the U.S. House of Representatives passes the Republican plan this week to extend the Bush-era tax cuts for one year for households making over $250,000, the wealthiest 2.1 percent of Michigan taxpayers in that income group could get a disproportionate 36 percent of the total tax breaks in their state. Their average tax cut would be about $31,500.
In contrast, if Congress passed President Obama’s plan to extend the Bush tax cuts on the first $250,000 in household income, the average tax cut for Michigan taxpayers who make more than that amount would be about $14,200, less than half of what they would get under the GOP plan. And the 28 percent of Michigan taxpayers with income up to $25,000 would get larger average tax cuts under the Obama plan than under the Republican plan.
Those are among the key findings of a new report released today by the Michigan League for Human Services, “Time to Pay Their Fair Share: Michigan Can’t Afford to Extend the Bush-era Tax Cuts for the Wealthy Few.” The report is authored by Americans for Tax Fairness, Citizens for Tax Justice and the National Women’s Law Center.
The report is timely because this week the U.S. House of Representatives will vote on the Republican plan to extend all the Bush tax cuts, including for the richest 2 percent of U.S. households, while ending improvements in tax credits for low-end and moderate-income families. The Democrats will offer an alternative plan similar to President Obama’s, which the U.S. Senate passed last week by a 51 to 48 vote.
“These are lavish tax breaks for those who need them the least. This is exactly the kind of special-interest giveaways from Congress that need to end,” said Gilda Z. Jacobs, president & CEO of the Michigan League for Human Services, a member of the Americans for Tax Fairness campaign. “We call on the House to end the Bush-era tax cuts for the richest 2 percent.”
Major findings of the report include:
The additional tax cuts for the wealthiest 2 percent of U.S. households under the Republican plan will cost approximately $68 billion next year alone. That’s equal to what the federal government spends to repair highways, improve education and provide school breakfasts for low-income children, ensure clean drinking water, and deliver meals at home to frail seniors. The report breaks down what Michigan’s share of these funds means for its residents:
“Can we afford to keep giving tax cuts to the richest? No we cannot,” Jacobs said. “And we can’t balance the budget on the backs of our seniors, children and families struggling to make ends meet, and we must stop borrowing from China. It’s only right that those who have done well in America should do well by America and pay their share.”