FOR IMMEDIATE RELEASE
Contact: Joshua Welter, 206-383-1857, email@example.com
Report Shows Impact to Washingtonians of Extending Bush Tax Cuts for Richest 2% of Americans
Wealthy Few Would Reap Huge Tax Breaks at Expense of Other Washingtonians
(July 31, 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 3.1 percent of Washingtonians in that income group could get a disproportionate 45 percent of the total tax breaks in their state. Their average tax cut would be about $35,000.
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 Washingtonians who make more than that amount would be $13,000, about half of what they would get under the GOP plan. And the 33 percent of Washingtonians 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 titled, “Time to Pay Their Fair Share: Washington 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.
“I’ve been a small business owner for over twenty-five years,” said Rob Robinson, owner of Building Dynamics, LLC in Walla Walla and a member of the Main Street Alliance of Washington. “If I were to earn over $250,000.00 per annum – which, like 97 percent of small business owners, I do not – I would expect to pay my fair share. Taxes are how we as members of a society pay for making important investments for the future that help our country and our economy be revitalized.”
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 Washington’s share of these funds means for its residents: