FOR IMMEDIATE RELEASE
Report Shows Impact to Nevadans of Extending Bush Tax Cuts for Richest 2% of Americans
Wealthy Few Would Reap Huge Tax Breaks at Expense of Other Nevada Residents
(Las Vegas, NV – July 31, 2012) If the U.S. House of Representatives passes theRepublican plan this week to extend the Bush-era tax cuts for one year for households making over $250,000, the wealthiest 2.6 percent of Nevada taxpayers in that income group could get a disproportionate 50 percent of the total tax breaks in their state. Their average tax cut would be about $46,000.
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 Nevada taxpayers who make more than that amount would be about $13,400, about 30 percent of what they would get under the GOP plan. And the 24 percent of Nevada 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 the new report, “Time to Pay Their Fair Share: Nevada 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.
“Giving lavish tax breaks for those who need them the least is exactly the kind of special-interest giveaways Washington needs to stop,” said Laura Martin, communications manager for PLAN, a member of the Americans for Tax Fairness campaign. “We urge the House to end the Bush-era tax cuts to 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 Nevada’s share of these funds means for its residents:
“We can’t afford to keep giving tax cuts to the richest,” said Linda Turner, Henderson resident and PLAN activist. Turner is giving her time to this issue because she is concerned that these expensive tax cuts for the richest few will result in the scaling back of important programs like Medicare, Social Security, and Medicaid. She continued, “We can’t balance the budget on the backs of children, seniors, and families struggling to make ends meet, and we can’t keep borrowing from China. Those who have done well in America should do well by America and pay their fair share.”
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