FOR IMMEDIATE RELEASE: Tuesday, July 31
CONTACT: Amanda Harrow, 406-437-3311, email@example.com
Report Shows Impact on Montanans of Extending Bush Tax Cuts for Richest 2 PERCENT of Americans
Small Businesses, Local Communities Can’t Afford $68 Billion Giveaway to Top Two Percent
Helena – 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 2.4 percent of Montana taxpayers would get an average tax cut of $23,650 compared to an average tax cut of $1,490 for households earning $50,000-$100,000.
While just 2.4 percent of Montanans would benefit from the extra tax cuts for income above $250,000, these cuts for the wealthy would cost the country $68 billion in 2013 alone. For comparison, $68 billion is as much as the federal government is spending nationwide in 2012 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 – investments that support strong local economies and small business development.
Those are among the key findings of a new report released today by the Montana Small Business Alliance and Montana Organizing Project, “Time to Pay Their Fair Share: Montana 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.
Only 2.5 percent of small business owners nationwide earn enough to be impacted by ending special breaks for income over $250,000, according to the U.S. Treasury Department. And, the non-partisan Congressional Budget Office has concluded that tax cuts for the wealthy are among the least effective ways to boost the economy and create jobs.
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.
“Giving lavish tax breaks for those who need them the least is exactly the kind of special-interest big-business giveaways that need to stop,” said Aimee McQuilkin, owner of Betty’s Divine in Missoula and a member of the Montana Small Business Alliance. “When the super wealthy don’t pay their fair share to support things like education and infrastructure that make it possible for small businesses like mine to succeed, our entire country suffers, small business owners included. We urge the House to end the Bush-era tax cuts to the richest 2 percent.”
“Our taxes fund education, infrastructure, and other vital programs and services that make our communities good places to live, play, and do business,” said Mike Craighill, owner of Soup and Such in Billings and a member of the Montana Small Business Alliance. “Most Montanans understand that everyone needs to pay their fair share.”
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. Modern infrastructure, an educated workforce, and healthy local communities are important contributors to small business development and success. The report breaks down what Montana’s share of these funds means for its residents:
“We can’t afford to keep giving special tax cuts to the richest,” said Montana Small Business Alliance member Gy Moody, owner of Cleaner Image Janitorial in Billings. “It’s time for the wealthiest Americans to do their part to keep our communities safe and strong. Those who have done well in America should do well by America and pay their fair share.”
The Montana Small Business Alliance is a statewide organization of independent small businesses. MSBA brings small business values into the public dialogue, advocating for policies that benefit small businesses and the communities they serve.